Bitcoin: everything has to be perfect?

If you spent $ 27 on bitcoin, when it was created by Satoshi Nakamoto in 2009, your investment today will be worth more than $ 37 million.

Widely regarded as the greatest vehicle of all time, bitcoin watched meteor growth during 2017, going from $ 777 to $ 17,000.

Creating millionaires from opportunistic investors and financial institutions, leaving open mouth Bitcoin responds to his critics at every stage of the year, and some believe that this is only the beginning.

December 10 launch of bitcoin f & # 39; yuchersav, which first will allow investors to enter the market through a major Bitcoin regulated exchanges in the US, means that we are just beginning.

What makes the Bitcoin so valuable that there is a limited number. Will remain a maximum of 21 million Bitcoins, and unlike conventional currency, you will not be able to print more of them if you want. This is because the Bitcoin protocol works on checking the work: to create it, you need to find it using the power of computer & # 39; computer processing to solve complex algorithms blokcheyne Bitcoin. Once this is achieved, you get a reward of bitcoins as payment for the work you work. Unfortunately, the reward you get for mining, sharply lower almost every year since the inception of the Bitcoin, which means that for most people the only viable way to Bitcoin – is to buy it on the market. At current price levels worth the risk?

Many believe that bitcoin – it's just a bubble. I was talking to an expert on cryptocurrency and long-term investors Duke Randall, who believes that the asset overstated: "I would compare it to a lot of bubbles of supply and demand in the history of, for example, the Dutch mania for tulips and dot bubble late 90s Prices & #. 39 are entirely based on speculation, and if you look at the functioning of Bitcoin as actual currency, it's almost embarrassing, "For those who do not know, bubble bubble -.. it is the period between 1997-2001, when many Internet companies. They were founded to give outrageous and tymistychnyya estimates based solely on speculation, which later filed for 80-90%, if the bubble began ruynutstsa in the early 2000s. Some companies, such as eBay and Amazon, have resumed and now sit much higher than these estimates, but for others it It was the end of the line.

Initially, bitcoin has been created in order to wrest power from our financial systems and to put people under the control of their own money, carving the middle man and enabling peers to make transactions. However, this is one of the slowest cryptocurrency on the market, the speed of its transactions are four times smaller than the fifth-largest cryptocurrency and its nearest competitor for payment solutions Litecoin. Impossible Coin particular Monero makes operation even faster, noting the average time of two minutes, the fifth of the time block Bitcoin can do it, and that without anonymity. The second largest in the world cryptocurrency, Ethereum, already has more of & # 39; transaction volume than the Bitcoin, despite the fact that it is estimated at only 676 dollars for the air compared to 16,726 dollars per bitcoin.

So why is the price so high Bitcoin? I asked the Duke Randalu the same question. "Everything goes to the same supply and demand economy, about the existence not so much bitkoynav, and the recent rise in prices has attracted a lot of media attention This is combined with the launch of bitcoin f & # 39;. Yuchersav, which many see as the first character Bytkoyn that adopted by the mass market, has led to a lot of people jump on the bandwagon for the sake of financial gain. Like any asset, if there is more demand to buy than to sell, the price increases. This is bad, because new investors enter the market, without realizing blokcheyn and the basic principles of these currencies, therefore, they are likely to burn. "

Another reason is that the Bitcoin with & # 39 is extremely variable, but is known to swing up and down thousands of dollars less than a minute, what if you are not used and do not expect it, makes less experienced investors panic sell that will lead to losses. This is another reason, if Bitcoin will fight for acceptance as a form of payment. The price of Bitcoin can significantly move between the time when providers adopt Bitcoin from customers and sell them on the stock exchange for their local currency. This chaotic movement can destroy all their profitability. Soon this instability will disappear? NOT likely: Bitcoin – a relatively new asset class, and while awareness is increasing, only a very small percentage of the world population has Bitcoins. Until it becomes more widespread and its liquidity improved significantly, volatility will continue.

Thus, if Bitcoin is quite useless as a de facto currency, which, in his application? Many believe that Bitcoin has moved from viable forms of payment and become a store of value. Bitcoin is like a "digital gold" and will simply be used as a benchmark for other cryptocurrency blokcheyn and projects that will be evaluated and a bargain. Recently, with the & # 39 there were stories of people in high inflation countries, such as Zimbabwe, who buy Bitcoin to keep their wealth, and not see the value of a negligence of the central banking system.

Do not engage in bitcoin late? If you believe that these cryptocurrency do for the world, it is never too late to take part, but the fact that Bitcoin value will be so high, this is the boat for some who already sailed. Perhaps you'd better look at Litecoin – to 6908% per year, or at the Ethereum – 7521% per year. The new, faster currency hope to achieve what bitcoin was first created, which was made in 2009, and replaced the fixed currency.

Who knows what the price of the currency will be ten, fifteen or even twenty years from now? One thing is certain, and we'd better engage ourselves, because it will be a wild ride.