Since it is now in vogue, I would like to announce that next week I am launching my own cryptocurrency.
Let’s call it “kingcoin.”
No, it’s too selfish.
How about “mutkoin”? I’ve always had a weakness for mixed racing.
Yes, it’s fine – everyone loves dogs.
It will be the biggest since the fidget spinners.
Congratulations! Anyone who reads this will get muttcoin when my new coin is launched next week.
I’ll evenly distribute 1 million tokens. Feel free to spend them wherever you want (or where someone will take them!).
What is this? The trusty cashier said he wouldn’t accept our mutkoin?
Tell these skeptics that muttcoin has scarce value – there will only be 1 million muttcoin. It is also backed up by full confidence and 8GB of my desktop RAM.
Also remind them that ten years ago you could not buy even a pack of chewing gum for bitcoin. Now you can buy a lifetime stock for bitcoin.
And like bitcoin, you can safely store muttcoin offline, away from hackers and thieves.
In fact, it is an exact replica of Bitcoin’s properties. Muttcoin has a decentralized registry with impossible cryptography to decrypt, and all transactions are immutable.
Still not sure that our Muttcoins will be worth billions in the future?
Well, that’s understandable. The fact is that it is much more difficult to launch a new cryptocurrency than it seems, if not impossible.
So I think that bitcoin, against all costs, has reached these heights. 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% dive will be no exception.
The success of Bitcoin depends on its ability to create a global network of users who are willing to trade with it now or leave it for later. Future prices will be determined by the rate of network growth.
Even despite sharp price fluctuations, the use of bitcoins continues to grow exponentially. There are currently 23 million open wallets in the world, where 21 million bitcoins can be found. In a few years, the number of wallets could reach 5 billion people on the planet connected to the Internet.
If you don’t notice when people buy bitcoins, they talk about it. We all have a friend who bought bitcoin and then didn’t want to shut his mouth. Yes, I’m guilty of that – and I’m sure many readers are to blame.
Perhaps unknowingly owners become crypto-evangelists, because persuading others to buy serves their own good by increasing the value of their property.
Bitcoin evangelism – the spread of the correct word – miraculously led to a price increase of $0.001 to the recent price of $10,000.
Who would have thought that a creator under a pseudonym, tired of the global banking oligopoly, launched an elusive digital resource that can equal the value of the world’s largest currencies in less than a decade?
No religion, political movement or technology has ever experienced such growth rates. But then again, humanity has never been so connected.
The idea of money
Bitcoin was born as an idea. To be clear, all the money – whether it’s a shell currency used by primitive islanders, a gold bar or the U.S. dollar – started out as an idea. The idea is that a network of users would also appreciate this and would be willing to part with something equal to your form of money.
Money has no internal value; the value of a purely external is exactly what others think it’s worth.
Look at the dollar in your pocket – it’s just a fancy piece of paper with a one-eyed pyramid, dotted portrait and signatures of important people.
To be useful, society must treat it as a settlement unit, and merchants must be prepared to accept it as payment for goods and services.
Bitcoin has demonstrated a strange ability to reach and connect to a network of millions of users.
Bitcoin is worth only what the next person is willing to pay for it. But as the network continues to grow exponentially, the limited supply, which prices can move only in one direction, puts …
Bitcoin’s nine-year surge has been characterized by huge periods of volatility. In January 2015, a correction of 85% was made and several more – more than 60%, including a whopping 93% in 2011.
However, thanks to each of these patches, the network (measured by the number of portfolios) continued to grow rapidly. While some speculators saw their value fall, new investors saw the value of margins and become buyers.
The anomalous level of volatility has helped the Bitcoin network reach 23 million users.
Hey, maybe we need some volatility in muttcoin prices to attract new users…
Ian King is a leading cryptocurrency trader and entrepreneur with more than twenty years of experience in trading and analyzing financial markets. His passion for the crypto asset market – that’s why he is one of the biggest players in Investopedia in this field – and why he has created an innovative program to help ordinary investors navigate the world. Bitcoin, Ripple, Litecoin, Monero and other crypto assets. He also writes in the sovereign Investor Daily.