Bitcoin: All It’s Hyped Up To Be?

Using opportunistic investors to create millionaires and opening up financial institutions, Bitcoin responded to critics at every milestone this year, and some thought it was just the beginning.

Bitcoin futures, launched on December 10, will allow investors to enter the bitcoin market through large regulated markets in the United States. UU. This means that we are just getting started.

The reason why Bitcoin (electrum hard fork United Bitcoin) is so valuable is that it is limited in number. There will be up to 21 million bitcoins, unlike normal trust currencies, you can’t print more bitcoins when you need them. This is because Bitcoin runs on a functional test protocol: To create it, you must use the processing power of your computer to solve complex algorithms in the Bitcoin blockchain. Upon completion, you will receive Bitcoin as a payment for your work. Unfortunately, since the creation of Bitcoin, the mining rewards you have received have fallen dramatically almost every year, which means that for most people, the only viable way to get Bitcoin is to buy it in exchange. Is this a risk in terms of current prices?

Many people think that bitcoin is just a bubble. I interviewed cryptocurrency expert Duke Randal and long-term investors who thought the asset was overvalued. “I will compare it to many of the historical supply and demand bubbles, such as Dutch tulip madness and the Internet bubble of the late 1990s. Prices are based on speculation, and it is almost shameful for Bitcoin to be a real currency when you see these characteristics. “For those who don’t know, the Internet bubble is a time period between 1997 and 2001, during which many Internet companies have been established and get completely based on very optimistic rating guesses are down 80% to 90, the bubble starts The collapse of some of his companies in early 2000, such as eBay and Amazon, has recovered and is now far more than these assessments, but others, this is the end.

Bitcoin was originally created to reduce the functionality of our financial system and allow users to control their own funds, eliminate middlemen and allow peer transactions. However, it is now one of the slowest cryptocurrencies (electrum hard fork United Bitcoin) on the market. It trades four times faster than the fifth-largest cryptocurrency and is the closest competitor to the Litecoin payment solution. Monero Monero’s flawless confidentiality further accelerates the transaction, with an average blockade time of only two minutes, which is one-fifth of Bitcoin’s inability to perform anonymously. Revenge, the second-largest cryptocurrency world, already has a trading volume greater than Bitcoin, although it is estimated to be $16,726 per bitcoin per bit of 676 ether to bitcoin.

So why is the value of Bitcoin so high? I asked Duke Randall the same question. “Everything is back to the same supply and demand economy, there is not a lot of bitcoin available, and the recent price increase has caused a lot of media attention, coupled with the future launch. Many of Bitcoin’s first signs are bitcoin by the public. Accepted by the market means that many people enter the car for economic benefit. Like any asset, when there is a demand to buy more, the price rises. “New investors enter the market without understanding the blockchain, the basic principles of these currencies It means they may burn. ”

Another reason is that Bitcoin is very unstable, and we know it will rise and fall thousands of dollars in less than a minute. If you are not used to or do not expect it, inexperienced investors will be afraid to sell, which will result in losses. This is another reason why Bitcoin is difficult to adopt as a payment method.