Since it is currently in vogue, I would like to announce that I am launching my own cryptocurrency next week.
Let’s call it “kingcoin”.
No, this is too self-serving.
How about “muttcoin”? I have always had a weakness for mixed breeds.
Yes, that’s perfect – everyone loves dogs.
This will be the biggest thing after fidget spinners.
Congratulations! Anyone reading this will receive a mutcoin when my new coin is released next week.
I will evenly distribute 1 million mutcoins. Feel free to spend them wherever you want (or where someone will accept them!).
What is this? The cashier at Target said they wouldn’t accept our mutcoins?
Tell those who doubt that mutcoin has a shortage of value – there will ever be only 1 million mutcoins. On top of that, it is backed by the full faith and merit of 8 GB of RAM on my desktop computer.
Also, remind them that a decade ago, Bitcoin couldn’t even buy you a packet of chewing gum. Now a bitcoin can buy a lifetime supply.
And, like bitcoin, you can store muttcoin safely offline away from hackers and thieves.
In essence, this is an exact copy of the properties of bitcoin. Muttcoin has a decentralized book with unbreakable cryptography and all transactions are unchanged.
Still not convinced that our mutcoins will cost billions in the future?
Well, it’s understandable. The fact is that launching a new cryptocurrency is much harder than it seems, if not impossible.
That’s why I believe that bitcoin has reached these heights despite all the odds. And because of its unique user network, it will continue to do so.
Of course, there were setbacks. But each of these failures eventually led to higher prices. The recent 60% decline will be no different.
The miracle of bitcoin
Bitcoin’s success is based on its ability to create a global network of users who are either ready to transact with it now or store it for later. Future prices will be determined by the pace at which the network grows.
Even in the face of wild price fluctuations, bitcoin adoption continues to grow at an exponential rate. There are now 23 million wallets open worldwide, chasing 21 million bitcoins. In a few years, the number of wallets could grow to include 5 billion people on the planet connected to the Internet.
Sometimes the motivation for new cryptocurrencies was speculative; other times they sought a stock of value far from their own national currency. In the last year, new applications such as Coinbase have made it even easier to connect new users.
If you haven’t noticed when people buy bitcoins, they talk about it. We all have this friend who bought bitcoin and then wouldn’t shut up about it. Yes, it’s my fault – and I’m sure a lot of readers are too.
Perhaps subconsciously, owners become crypto-evangelicals, as persuading others to buy serves their own interest in increasing the value of their possessions.
The evangelization of bitcoin – the spread of the good word – has miraculously led to a rise in price from $ 0.001 to a recent price of $ 10,000.
Who could have imagined that his pseudonym, fed up with the global banking oligopoly, has released an intangible digital resource that rivals the value of the world’s largest currencies in less than a decade?
No religion, political movement or technology has ever witnessed this growth rate. On the other hand, humanity has never been so connected.
The idea of money
Bitcoin started as an idea. To be clear, all the money – whether it was shell money used by primitive islanders, a gold bar or a US dollar – started as an idea. The idea is that a network of users appreciates it equally and would be willing to part with something of equal value for your form of money.
Money has no intrinsic value; its value is purely external – only what others think is worth it.
Pay attention to the dollar in your pocket – it’s just an exquisite sheet of paper with a one-eyed pyramid, a portrait of the stamp and the signatures of important people.
To be useful, society must view it as a unit of account and traders must be willing to accept it as payment for goods and services.
Bitcoin demonstrates an incredible ability to reach and connect a network of millions of users.
One bitcoin costs only what the next person is willing to pay for it. But if the network continues to expand at an exponential rate, limited supply argues that prices can only move in one direction … higher.
The nine-year rise of bitcoin has been marked by huge bouts of volatility. There was an 85% correction in January 2015 and a few others over 60%, including a colossal 93% decline in 2011.
However, with each of these adjustments, the network (measured by number of portfolios) continued to expand rapidly. As some speculators saw their value diminished, new margin investors saw value and became buyers.
Abnormal levels of volatility are actually what helped the bitcoin network grow to 23 million users.
Hey, maybe we just need some price volatility in muttcoin to attract new users …