Bitcoin peaked about a month ago, on December 17, at a high of around $ 20,000. As I write, the cryptocurrency is under $ 11,000 … a loss of about 45%. This is more than $ 150 billion In the lost market value.
There is a lot of pressure on the teeth and their grinding in the coded comments. It’s neck and neck, but I think the “I-tell-you-so” audience has an advantage over the “excuse makers”.
Here’s the thing: Unless you’ve just lost your shirt on Bitcoin, that doesn’t matter at all. And the “experts” you might see in the press probably won’t tell you why.
In fact, the Bitcoin crash is awesome … because it means we can all stop thinking about cryptocurrencies altogether.
Bitcoin’s death …
In a year or so, people won’t be talking about Bitcoin on the grocery line or on the bus, as it is now. Here’s why.
Bitcoin is the product of justified frustration. Its designer has openly said that the cryptocurrency was a reaction to the government’s misuse of fiat currencies like dollars or euros. It was meant to provide an independent peer-to-peer payment system based on a virtual currency that cannot be underestimated, given that there are a limited number of them.
This dream has long since been abandoned in favor of raw speculation. Ironically, most people are interested in Bitcoin because it seems like an easy way to get more fiat currency! They don’t have it because they want to buy pizza or gas with it.
Besides being a terrible way to trade electronically – it’s painfully slow – the success of Bitcoin as a speculative game has rendered it useless as a currency. Why would anyone spend it if her estimate was so fast? Who will accept one when it depreciates rapidly?
Bitcoin is also a major source of pollution. It only takes 351 kilowatt hours of electricity to process one treatment – which also releases 172 kilograms of carbon dioxide into the atmosphere. That’s enough energy to power an American family for a year. The energy consumed by all bitcoin mining to date could power nearly 4 million American homes for a year.
Ironically, Bitcoin’s success is old-fashioned Guessing gameplay Not the perceived liberal uses – have attracted government crackdown.
China, South Korea, Germany, Switzerland and France have implemented, or are studying, bans or restrictions on Bitcoin trading. Several intergovernmental organizations have called for concerted action to curb the apparent bubble. The US Securities and Exchange Commission, which had seemed likely to approve bitcoin-based derivatives, is now hesitant.
According to Investing.com: “The European Union is implementing stricter rules to prevent money laundering and terrorist financing on cryptocurrency platforms. It is also looking into restrictions on cryptocurrency trading.”
We might one day see a functional and widely accepted cryptocurrency, but it won’t be Bitcoin.
… but a push for crypto assets
Hassan. Going beyond Bitcoin lets us know where the true value of the crypto asset lies. Here’s how.
To use the New York subway system, you need codes. You can’t use it to buy anything else … even though you are He can Sell it to someone who wants to use the subway more than you do.
In fact, if the subway tokens are limited in supply, a vibrant market could emerge for them. They may even trade for a lot more than they originally cost them. It all depends on the number of people Wants For subway use.
This, in short, is a promising “cryptocurrency” other than Bitcoin scenario. They are not money, they are Icons – “Cryptocurrencies”, if you will. It is not used as a public currency. It is only good within the platform for which it was designed.
If these platforms provide valuable services, people will need those tokens, and this will determine their price. In other words, the encrypted tokens will be valuable to the point that people value the things you can get for them from the platform associated with them.
That would make them Real property, With Intrinsic value – because it can be used to get something that people appreciate. This means that you can confidently expect an influx of revenue or services from owning such tokens. Crucially, you can measure the flow of future returns against the price of the cryptocurrency, just as we do when we compute the price / earnings (P / E) ratio of a share.
By contrast, Bitcoin has no intrinsic value. It only has a price – the price determined by supply and demand. It cannot produce future revenue streams, and you cannot measure anything like its P / E ratio.
One day it will be worthless because it gives you nothing real.
Ether and other crypto assets are the future
Certainly encrypted ether symbol sound Like a coin. They are traded on cryptocurrency exchanges under the symbol ETH. Its symbol is the capital Greek letter Xi. It is mined in a process similar (but less energy consuming) to Bitcoin.
But ether is not a currency. Its designers describe it as “fuel to run the Ethereum distributed application platform. It is a form of payment that the platform’s customers make for machines that perform the required operations.”
Ether tokens give you access to one of the most advanced distributed computing networks in the world. It’s so promising that big companies are falling for each other to develop practical, real-world uses for them.
Since most of the people who trade in it don’t really understand or care about its true purpose, the price of Ether has skyrocketed and rose like Bitcoin in recent weeks.
Ultimately, however, the ether will revert to a fixed price based on the demand for computing services that it can “buy” for people. It will represent the price The real value That can be priced in the future. There will be a futures market for it, and exchange-traded funds (ETFs), because everyone will have a way of assessing their core value over time. Just like we do with stocks.
What will this value be? I have no idea. But I know that it will be much more than Bitcoin.
My advice: Ditch your Bitcoin, and buy Ether on the next dip.