Since it is currently in vogue, I would like to announce that I will be launching my own cryptocurrency next week.
Let’s call it “kingcoin”.
No, that’s too selfish.
How about “muttcoin”? I have always raised mixed breeds.
Yes, that’s perfect – everyone loves dogs.
This will be the biggest thing about a fidget spinner.
Congrats! Everyone reading this will get one muttcoin when my new coin is launched next week.
I will distribute 1 million muttcoins evenly. Feel free to spend them wherever you want (or wherever someone will accept them!).
What is it? The cashier at Target said she wouldn’t accept our muttcoin?
Tell those who suspect that muttcoin has a value in short supply – there will only be 1 million muttcoins. On top of that, it is backed by the full faith and merit of my 8GB RAM desktop.
Also, remind them that ten years ago bitcoin couldn’t even buy you a pack of chewing gum. Now one bitcoin can buy a lifetime stock.
And, like bitcoin, you can safely store muttcoin offline away from hackers and thieves.
It is basically an exact replica of the properties of bitcoin. Muttcoin has a decentralized book with cryptography that is impossible to break, and all transactions are immutable.
Still not convinced that our mutcoins will be worth billions in the future?
Well, that’s understandable. The fact is that launching a new cryptocurrency is much harder than it seems, if not completely impossible.
So I believe bitcoin has reached these heights despite all odds. And because of its unique user network, it will continue to do so.
Of course, there were also delays. But each of these setbacks ultimately resulted in higher prices. The recent 60% drop will be no different.
The miracle of Bitcoin
The success of bitcoin rests on its ability to create a global network of users who are either willing to transact with it now or store it for later. Future prices will be determined by the pace at which the network grows.
Even faced with wild price changes, bitcoin adoption continues to grow at an exponential rate. Now, 23 million wallets have been opened worldwide, chasing 21 million bitcoins. In a few years, the number of wallets could increase and include 5 billion people on the planet connected to the Internet.
Sometimes the motivation of new crypto converts was speculative; the second time they sought stocks of value away from their domestic currency. Last year, new apps like Coinbase made it even easier to engage new users.
If you haven’t noticed, when people buy bitcoin, they talk about it. We all have that friend who bought bitcoin and then didn’t want to keep quiet about it. Yes, it’s my fault – and I’m sure there are a lot of readers.
Perhaps subconsciously, owners become crypto-evangelists because convincing others to buy serves their own interest in increasing the value of their possessions.
The evangelization of bitcoin – spreading 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 its pseudonymous creator, saturated with a global banking oligopoly, launched an intangible digital resource that matched the values of the world’s largest currencies in less than a decade?
No religion, political movement or technology has ever witnessed these growth rates. And yet, humanity has never been so connected.
The idea of money
Bitcoin started as an idea. To be clear, all the money – whether it’s shell money used by primitive islanders, gold bars or the US dollar – started as an idea. The idea is that the user network values it equally and would be willing to detach yourself from 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.
Look at the dollar in your pocket – it’s just a fancy piece of paper with a one-eyed pyramid, a portrait and the signatures of important people.
To be useful, society must view it as a unit of account, and merchants must be willing to accept it as payment for goods and services.
Bitcoin has shown an incredible ability to reach and connect a network of millions of users.
One bitcoin is only worth as much as the next person is willing to pay for it. But if the network continues to expand at an exponential rate, limited supply claims that prices can only move in one direction … more.
Bottom Line
The nine-year rise of Bitcoin has been marked by huge attacks of volatility. There was a correction of 85% in January 2015, and a few others over 60%, including a colossal 93% withdrawal in 2011.
However, through each of these corrections, the network (measured by the number of wallets) continued to expand at a rapid pace. As some speculators saw their value decimated, new investors on the margins 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 muttcoin price volatility to attract new users …