Bitcoin Thrives Against All Odds
Since it's currently en vogue right now, I'd prefer to announce that I'm launching my own crypto currency next week.
Let's call it "kingcoin."
Nah, that's too self-serving.
Think about "muttcoin"? I've always had a soft position for mixed breeds.
Yeah, that's perfect - everybody loves dogs.
This is going to be the largest thing since fidget spinners.
Congrats! Everyone scanning this is going to receive one muttcoin when my new coin launches next week.
I'm going to evenly distribute 1 million muttcoins. Feel free to spend them wherever you want (or wherever anyone encourage them!).
What's that? The cashier at Target said they wouldn't accept our muttcoin?
Tell those doubters that muttcoin has scarcity value - there will only ever be 1 million muttcoins in existence. Together with that, it's backed by the full faith and credit of my desktop computer's 8 GB of RAM.
Also, remind them a decade ago, a bitcoin couldn't even buy you a bunch of chewing gum. Now one bitcoin can purchase an eternity supply.
Well, it's understandable. The fact is, launching a new breaking crypto news currency is a lot harder than it seems, if not downright impossible. And, like bitcoin, you can store muttcoin safely offline away from hackers and thieves.
It's basically a precise replica of bitcoin's properties. Muttcoin includes a decentralized ledger with impossible-to-crack cryptography, and all transactions are immutable.
Still not convinced our muttcoins will be worth billions as time goes on?
This is exactly why I think bitcoin has reached these heights against all odds. And because of its unique user network, it will continue to complete so.
Sure, there has been setbacks. But all these setbacks has eventually resulted in higher prices. The recent 60% plunge will be no different.
The Miracle of Bitcoin
Bitcoin's success rests in its ability to make a global network of users who are either ready to transact with it now or store it for later. Future prices will be determined by the pace that the network grows.
Even yet in the face area of wild price swings, bitcoin adoption is growing at an exponential rate. Nowadays there are 23 million wallets open globally, chasing 21 million bitcoins. In a few years, the number of wallets can rise to add the 5 billion people on the planet attached to the internet.
Sometimes the brand new crypto convert’s motivation was speculative; other times these were seeking a shop of value away from their particular domestic currency. Within the last few year, new applications such as for instance Coin base have managed to get even easier to onboard new users.
If you haven't noticed, when people buy bitcoin, they talk about it. We all have that friend who bought bitcoin and then wouldn't shut up about it. Yes, I'm guilty of the - and I'm sure many readers are too.
Perhaps subconsciously, holders become crypto-evangelists since convincing others to purchase serves their particular self-interest of increasing the worth of the holdings.
Bitcoin evangelizing - spreading the nice word - is what miraculously led to a cost ascent from $0.001 to a recently available price of $10,000.
Who may have imagined that its pseudonymous creator, fed up with the global banking oligopoly, launched an intangible digital resource that rivaled the worth of the world's largest currencies in less than ten years?
No religion, political movement or technology has ever witnessed these growth rates. However, humanity never been as connected.
The Notion of Money
Bitcoin started being an idea. To be clear, all money - whether it's shell money used by primitive islanders, a club of gold or perhaps a U.S. dollar - started being an idea. It's the indisputable fact that a network of users value it equally and could be ready to spend something of equal value for the form of money.
Money doesn't have intrinsic value; its value is purely extrinsic - only what others think it's worth.
Take a go through the dollar in your pocket - it's just an extravagant bit of paper with a one-eyed pyramid, a stipple portrait and signatures of important people.
To be able to be useful, society must view it as a system of account, and merchants must certanly be willing to simply accept it as payment for goods and services.
Bitcoin has demonstrated an uncanny ability to achieve and connect a network of an incredible number of users.
One bitcoin is worth what the following person is willing pay for it. But if the network continues to expand at an exponential rate, the limited supply argues that prices can just only move around in one direction... higher.