Have you spent $ 27 in Bitcoin when it was created by Satoshi Nakamoto in 2009, its investment would now be more than $ 37,000,000?
Widely considered as the best investment vehicle of all time, Bitcoin has seen a meteoric increase during 2017, from $ 777 to $ 17,000.
The creation of millionaires outside opportunistic investors and leaving the financial institutions of Boca Abierta, Bitcoin has responded to its critics in each landmark of this year and some believe that this is only the beginning.
The launch of Bitcoin futures on December 10, which for the first time will allow investors to enter the Bitcoin market through a major regulated US trade, implies that we have just begun.
What makes Bitcoin so valuable is that there is a finite amount in existence. There will only be a maximum of 21 million Bitcoins and, unlike normal FIAT currencies, you can not simply print more than them each time you feel like. This is because Bitcoin runs on a work test protocol: To create it, you must use it using the processing power of the computer to resolve complex algorithms in the Bitcoin Bluckchain. Once this is achieved, you are rewarded with Bitcoin as payment for the “work” you have done. Unfortunately, the reward that obtains by mining has drastically decreased almost every year since the start of Bitcoin, which means that for most people, the only viable way to get Bitcoin is buying it in an exchange. At current price levels is that a risk that is worth taking?
Many believe that Bitcoin is simply a bubble. I talked to the expert in cryptocontaciones and the long-term investor Duke Randal, who thinks that the asset is overvalued, “I would compare this with many bubbles of supply and demand on history, such as Dutch Tulip Mania and the Bubble Dot Com of the last 90 . The prices are purely speculating. Based, and when you look at Bitcoin’s functionality as a real currency, it is almost embarrassing. ” For those who do not know, the Dot Com bubble was a period between 1997-2001, where many Internet companies were founded and gave outrageously optimistic assessments based on the speculation that then collapsed 80-90% as the Bubble began to collapse at the beginning of 2000s. Some companies such as eBay and Amazon recovered and now feel very much above those assessments, but for others, it was the end of the line.
Bitcoin was originally created to get away from our financial systems and put people in control of their own money, eliminating the average man and enabling pair transactions. However, it is now one of the slowest cryptocures of the market, its transaction speed is four times slower than the largest fifth cryptocurrencia and its closest competitor for Litecoin payment solutions. Privacy Privacy Monge Monkey makes transactions that transactions are even faster, with an average blocking time of only two minutes, a fifth of Bitcoin time can do so, and that is without anonymity. The second largest cryptomacean in the world, Ethereum, already has a tallest transaction volume that Bitcoin despite being valued at only $ 676 per ether compared to Bitcoin’s $ 16,726 by Bitcoin.
So, why is Bitcoin’s value so high? I asked Duke Randal the same question. “Everything goes back to the same economy of supply and demand, relatively not much available appointment and its recent increase in the price has attracted a lot of attention to the media, this combined with the launch of Bitcoin futures than many Come as the first sign. Bitcoin is being accepted by the mass market, it has resulted in a large number of people who jump on the car to get financial gains. Like any asset, when there is a greater demand to buy to sell, the price Upload. This is bad because these new investors are entering the market without understanding blocking blocks and the underlying principles of these currencies, which means that they are likely to burn. “