IS BITCOIN ANOTHER BUBBLE AFTER DOT COM BUBBLE?

Bitcoin (₿) is a cryptocurrency and could be worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without an intermediary.These transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a Blockchain.

Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.

BEFORE MOVING FORWARD, I MUST TELL YOU THAT I FIRMLY BELIEVE THAT BLOCKCHAIN TECHNOLOGY WILL PLAY CRUCIAL ROLE IN HUMAN DEVELOPMENT.

Satoshi explains fixed supply and distribution of coins.

As computers get faster and the total computing power applied to creating bitcoins increases, the difficulty increases proportionally to keep the total new production constant. Thus, it is known in advance how many new bitcoins will be created every year in the future.

Coins have to get initially distributed somehow, and a constant rate seems like the best formula.

Bitcoins are even created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services in some countries like Japan, United States, Canada, Australia ,European Union .

Bitcoins are not issued, endorsed, or regulated by any Central Bank. Instead, they are created through a computer-generated process known as mining. In addition to being a Crypto-currency unrelated to any government, Bitcoin is also necessarily a peer-to-peer payment system since it does not exist in any physical form and must be exchanged online. As such, it offers a convenient way to conduct cross-border transactions with no Exchange Rate fees. It also allows users to remain anonymous.

After the announcement of Bitcoin illegal in India and some other Countries; Bitcoin has fallen down below $9000,where it was rising above $16000 .INDIA was the 11th Largest Buyer of Bitcoins before the announcement of Budget but now the purchase of Bitcoins have been reduced by 1/10th of its size. There was a time when bitcoins were having sixth largest Market cap, but It’s now facing its rivals like Litecoin, Ethereum and many more. Market is now full of cryptocurrencies,which is creating difficulties in market for Bitcoin to make its price stable.

Bitcoin was made on a soul purpose of It as Exchange Medium but Public has taken it as a Medium for Trading and growing their money.

The fact that bitcoin can be anonymously used to conduct transactions between any account holders, anywhere and anytime across the globe, makes it attractive to criminal elements. They may use bitcoins to buy or sell illegal goods like drugs or weapons. Most countries have not clearly made determinations on the legality of bitcoin, preferring instead to take a wait-and-see approach. Some countries have indirectly assented to the legal usage of bitcoins by enacting some regulatory oversight. However, bitcoin is never legally acceptable as a substitute for a country’s legal tender.

Although Bitcoin is now five years into existence, countries still do not have explicit systems that restrict, regulate, or ban the cryptocurrency. The decentralized and anonymous nature of bitcoin has challenged many governments on how to allow legal use while preventing criminal transactions. Most countries are still analyzing ways to properly regulate the the cryptocurrency. Overall, bitcoin remains in a grey area as the technological leap has left lawmakers far behind.

IT CANNOT BE USED AS MEDIUM OF EXCHANGE AS IT’S LIKE A BAR OF GOLD OR A BARREL OF OIL WHOSE, PRICES ALWAYS GOING UP & DOWN . THE MEDIUM OF EXCHANGE SHOULD BE STABLE .

The Point of View on Bitcoins by Some Great Personalities.

Warren Buffett : The billionaire investor said on 11 January he would never invest in bitcoin or other cryptocurrencies, and predicted the wildly popular assets were in for a fall.

“I can say almost with certainty that cryptocurrencies will come to a bad end,” Buffett told CNBC in an interview.

Joseph Stiglitz :The Nobel-prize-winning economist has argued that the currency should be outlawed.

“It doesn’t serve any socially useful function.”

Billionaire Mark Cuban backs that theory.

Cuban tells that it’s perfectly okay to invest up to 10 percent of your savings in high-risk investments like bitcoin. However, you’ve just “got to pretend you’ve already lost your money,” he says. In a nutshell: Only invest in bitcoin if you’re prepared to lose money.

Jordan Belfort :believes the cryptocurrency is in a bubble and could be set to plummet in value soon. The real-life Wolf of Wall Street has warned investors over Bitcoin, labelling it a “huge scam”.

“I think it’s a huge danger right now that people are looking at this as the next great thing, it’s a bubble for sure”.“The next stage, you will see it really skyrocket, there will be a short squeeze, it will go even higher and then eventually it will come caving in, it’s almost a guarantee.”

Bill Gates: cryptocurrencies have ‘caused deaths in a fairly direct way’

“Right now cryptocurrencies are used for buying fentanyl and other drugs so it is a rare technology that has caused deaths in a fairly direct way.” In contrast to cash, which is also untraceable, cryptocurrencies can be used remotely, which removes another avenue of control.

YEARS OF BITCOINS: TO KNOW ABOUT IT’S GROWTH

2012: Steady Increase

The first day of 2012 would have welcomed you with a closing price of $5.27, bumping up your investment to $1,756.65. Throughout the first quarter of 2012, the price of bitcoin dipped below the $5 mark. It started appreciating again in May 2012, and closed at $13.51 on December 31, 2012.

Your current investment would have stood at $4,503.29. In 2012, few businesses accepted bitcoin as a form of payment. For example, bitcoin payment processor BitPay only had 1,000 businesses using its platform. One of those businesses was Utah-based Bees Brothers, so you could have purchased 450 half-pound bags of honey roasted almonds for your friends and family.

2014: The Big Downfall

The good news is that unlike previous years, in 2014, you could have spent your bitcoins at many companies, including Overstock.com, Microsoft, Dell and Time. Paying in bitcoins offers several Advantages, including more convenience in mobile payments. Also, you could have withdrawn funds through an ever-increasing network of bitcoin ATMs around the world.

However, the bad news is you would have seen your investment drop and hit a rock bottom value of $309.87 per bitcoin on December 30, 2014. By the end of this year, your investment would have been worth $106,565.60, or 240 Tribecca Home Uptown modern sofas at Overstock.com.

2017–2018: All-Time Highs, And Still Soaring

In February, Bitcoin broke its 2013 record and hit the $1169.04 mark (per Coinbase’s price index). It hit other milestones as well, surpassing for the first time the price of one Troy ounce of gold. On May 2, it surged again to $1448. Since May it has continued to climb surpassing price milestones quickly.

On November 28, 2017 it crossed the $10,000 mark and less than 24 hours later it was trading above $11,000. The price kept surging in December and hit an all-time high of $19,783 on December 17, which would have valued the investment at $6,594,267.

Since then, the price has slid, trading at nearly $11,251 on January 18, 2018, making your investment worth around $3,750,296. The price has come down further since then and stands, as of February 16, 2018, at $10,074, making your investment worth around $3,357,965.Presently(10-July-19), Bitcoin stands @ 13,135.70 USD.

SO,WHAT WILL HAPPEN TO BITCOINS IN COMING YEARS?

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Jatin Chauhan

Jatin Chauhan

Working on the web, for the Web.

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