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Bitcoin: All It’s Hyped Up to Be?

Acquired you spent $27 on Bitcoin when it was created by Satoshi Nakamoto in 2009 your investment would now be worthwhile over $37, 000, 500.

Widely regarded as the greatest investment vehicle of all time, Bitcoin has seen a meteoric surge during 2017 going from $777 all the way to $17, 000. 

Creating millionaires out of opportunistic investors and leaving banking institutions open-mouthed, Bitcoin has solved its critics at every milestone this year and some believe this is merely the beginning.

The release of Bitcoin futures on December 10th, which initially will allow investors to enter the Bitcoin market through a major licensed US exchange, means that we are just getting started out.

Why is Bitcoin so valuable is the fact there is a finite amount around. There will only ever become a maximum of 21 million Bitcoins and unlike normal fiat values you can’t just print out more of them when you think that. This is because Bitcoin runs over a proof of work standard protocol: as a way to create it, you have to mine it using computer refinement power to solve complicated algorithms on the Bitcoin blockchain. Once this is achieved, you are recognized with Bitcoin as repayment for the “work” you have done. Unfortunately the reward you get for mining has decreased significantly almost annually since Bitcoin’s inception, which means that for most people the only viable way to get Bitcoin is buying it by using an exchange. For the current prices is that a risk value taking?

Many believe Bitcoin is simply bubble. We spoke to cryptocurrency expert and permanent investor Fight it out Randal who thinks the asset is overvalued, “I would compare this to many supply and demand bubbles over history such as Dutch Tulip Odio and the dot por bubble of the overdue 90s. Prices are simply speculation based, then when you look at Bitcoin’s operation as an actual foreign currency it is nearly embarrassing. inches For those who can’t say for sure, the dot com bubble was a period between 1997-2001 where many internet companies were founded and given outrageously optimistic values based purely on rumours that later plummeted 80-90% as the bubble commenced to break down in the early 2000s. Several companies such as amazon and Amazon, recovered now sit far above those valuations but for others it was the end of the queue.

Bitcoin was at first created in order to take electricity from our financial systems make people in control of their any money, reducing out the middle man and enabling peer to peer transactions. However, it is now one of the slowest cryptocurrencies on the market, its deal speed is four times slower than the sixth biggest cryptocurrency and the nearest competitor for repayment solutions Litecoin. Untraceable level of privacy coin Monero makes deals even quicker, boasting an average block moments of just two minutes, a fifth of the time Bitcoin will go through successfully in, and gowns without anonymity. The planet’s second biggest cryptocurrency, Ethereum, already has a higher transaction volume than Bitcoin despite being valued at only $676 dollars every Ether compared to Bitcoin’s $16, 726 per Bitcoin.

How could Bitcoin’s value so high? Specialists Duke Randal the same question. “It all dates back to the same supply and demand economics, relatively there is not very much Bitcoin available and its recent surge in cost has attracted a lot of media attention, this merged with the launch of Bitcoin futures which many see as the first sign Bitcoin will be accepted by the mass market, has resulted in a lot of men and women jumping on the bandwagon for financial gain. Like any advantage, when there is a higher demand to buy than to sell, the retail price goes up. This is bad because these new investors are entering the market without understanding blockchain and the underlying guidelines of these currencies indicating they are likely to get burnt”.

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