Bitcoin Thrives Against All Odds

Since it’s currently en vogue right now, I’d like to announce that I’m launching my own cryptocurrency next week.

How about we refer it it as “kingcoin”?

Nope, that’s just too egocentric.

Can we call it “muttcoin” instead? Aside from purebreds, mixed-breed animals have always been my favourite.

That’s great news since canines are universally well-liked.

The popularity of fidget spinners will be eclipsed by this.

Congrats! The introduction of my new currency is next week, and to celebrate, I’m giving away one muttcoin to everyone who reads this.

Learn More About:Platincoin

I’ll be giving out 1,000,000 muttcoins, and they’ll all be worth the same. Invest them wherever you see fit (or wherever anyone will!).

I don’t even know what it is. The clerk at Target claimed they wouldn’t take our muttcoin?

Tell your sceptics that there is value in muttcoin since there will only ever be 1,000,000 of them. More than that, it’s guaranteed by the 8 GB of RAM on my desktop PC.

Tell them that a decade ago, a bitcoin wasn’t worth enough to purchase a stick of gum. One bitcoin may now purchase an infinite amount.

Muttcoin, like Bitcoin, may be stored offline, out from the reach of hackers and criminals.

It’s practically a perfect duplicate of bitcoin’s attributes. With Muttcoin, all transactions are permanently recorded on a distributed ledger protected by indecipherable cryptography.

Still not persuaded our muttcoins will be worth billions in the future?

Yes, I can see why that might be the case. The reality is that it is very difficult, if not impossible, to introduce a brand new cryptocurrency.

That’s why I think bitcoin has defied all odds and been so successful. And it will continue to do so since its user base is unlike any other.

There have been obstacles, no doubt. Price increases are the inevitable outcome of each of these setbacks. This current drop of 60% won’t be any different.

The Miracle of Bitcoin

Bitcoin’s future depends on its ability to attract a large user base interested in making immediate purchases and long-term investments. Future pricing will be decided by the rate that the network expands.

In spite of the volatility, bitcoin’s use is increasing exponentially. Currently, there are over 23 million active wallets in the world, all competing for around 21 million bitcoins. In a few of years, the world’s 5 billion internet users will everyone have their own wallet.

Some new crypto adopters are driven by speculation, while others are looking to diversify their wealth away from their home currency. In the recent year, new services like as Coinbase have made it even simpler to onboard new customers.

People that purchase bitcoin like to speak about it, in case you hadn’t noticed. We all had that buddy who purchased bitcoin and then wouldn’t stop talking about it. I’m guilty of this, and I’m willing to bet that many of you are, too.

Perhaps unconsciously, holders become crypto-evangelists as pushing others to buy suits their own self-interest of raising the value of their holdings.

The extraordinary rise in Bitcoin’s price from its initial value of $0.001 to its current value of $10,000 may be attributed, in no little part, to the widespread advocacy for Bitcoin.

Who would have thought that its anonymous founder, frustrated by the global banking oligopoly, would establish an intangible digital resource that, in less than a decade, would match the value of the world’s main currencies?

Growth rates like this have never been seen in any major religion, political movement, or technological advancement. On the other hand, never before has mankind been so interconnected.

The Idea of Money

When Bitcoin was first conceived, it was only a concept. To be clear, every form of currency—from the shell money of ancient islanders to the gold in a bank vault or the United States dollar in your wallet—began as an idea. If everyone in a network places an equal value on it, then everyone should be ready to trade anything of equal worth for your chosen currency.

Money has no inherent value; its value is totally extrinsic – just what others believe it’s worth.

The dollar bill in your wallet is nothing more than a piece of paper with a stippled picture and the signatures of powerful individuals affixed to it.

To be practical, it must be recognised as a unit of account by the general public and accepted as payment by businesses.

Bitcoin has shown an incredible capacity to attract and interconnect a massive user base.

The price of a single bitcoin changes based on how much the next buyer wants to pay for it. But if the network continues to develop at an exponential pace, the limited supply argues that prices can only go one way: up.

Also Read : In the World of Crypto, Not All Losses Are Created Equal

The Bottom Line

The rise of Bitcoin over the last nine years has been distinguished by extreme fluctuations. In January of 2015, the market dropped by 85 percent, and there have been a few additional corrections of more than 60 percent, the worst of which was a 93.3 percent drop in 2011.

Through each of these fixes, however, the network (as measured by number of wallets) continued to develop at a fast rate. While some speculators saw their investments wiped out, others on the fringes saw opportunity and began to buy.

Extreme volatility is what fueled Bitcoin’s meteoric rise to 23 million users.

Maybe if muttcoin prices were more volatile we might get more people to utilise it.

Ian King is a well-known cryptocurrency trader and business owner. He has been trading and studying the financial markets for more than 20 years. Because he is so interested in the cryptocurrency market, he is one of the main people who write for Investopedia’s section on cryptocurrencies. He has also come up with a unique way to help regular investors understand and trade cryptocurrencies like bitcoin, ripple, litecoin, monero, and many others. He has written for the Sovereign Investor Daily as well.