Bitcoin- A Closer Look

Bitcoin- A Closer Look

Had you invested $27 on Bitcoin when Satoshi Nakamoto developed it in 2009 your investment will now be worth more than $37,000,000. For more info see this.

Widely known as the greatest investment opportunity of all time, Bitcoin experienced a meteoric increase from $777 all the way to $17,000 during 2017.

Producing millionaires out of opportunistic capitalists and dumping open-mouthed financial firms, Bitcoin has reacted to its detractors at every landmark this year and some claim this is just the start.

The introduction of Bitcoin futures on December 10th, which will encourage investors to access the Bitcoin business via a big controlled US exchange for the first time, means that we’re just starting out.

What makes Bitcoin so special that there’s a limited amount in nature. Just a limit of 21 million Bitcoins can ever exist and unlike standard fiat currencies you can’t just print any of them anytime you feel like. This is since Bitcoin operates on a functioning protocol proof: to construct it, the Bitcoin network needs to mine it using computer processing resources to solve complicated algorithms. After that has been done, you will be credited with Bitcoin as reimbursement for the “job” you did. Unfortunately, the payout you get for mining has fallen significantly nearly any year after the advent of Bitcoin, ensuring that the only feasible way to obtain Bitcoin is to purchase it on an exchange for most citizens. Is that a chance worth taking at present price levels?

Most believe Bitcoin is just a bubble. I talked to cryptocurrency analyst and long-term trader Duke Randal who believes the commodity is overvalued, “I can equate this to a number of supply and demand bubbles over history like Dutch Tulip Mania and the dot com bubble of the late 90s. Values are strictly financial, so if you look at Bitcoin’s utility as an individual currency it’s almost humiliating.” Some companies including eBay and Amazon have stabilized and are still perched well above those valuations while for some it was the end of the road.

Bitcoin was initially designed to take power away from our financial institutions and put citizens in charge of their own assets, cutting the middle man out and enabling peer-to-peer transactions. However, it is also one of the slowest cryptocurrencies on the sector, its level of conversion is four times smaller than the fifth biggest cryptocurrency and its nearest rival for Litecoin payment solutions. Untraceable anonymity coin Monero makes transfers much quicker, boasting an overall block-time of only two minutes, a fifth of the period Bitcoin would do it in, and that’s anonymously. The world’s second largest blockchain, Ethereum, now has a larger number of transactions than Bitcoin despite being priced at only $676 dollars per Ether compared to $16,726 a Pound for Pound.