Since it is currently trending in vogue at the moment, I want to announce that I will be launching my cryptocurrency next week.
Let’s call it “kingcoin”.
Nah, this is very self-serving.
How about “muttcoin”? I’ve always had a weak spot for mixed breeds.
Yes, that’s perfect – everyone loves dogs.
This would be the biggest thing since the flirters fidget.
Congratulations! Everyone reading this will get one motcoin when my new coin launches next week.
I’m going to distribute a million motcoins evenly. Feel free to spend it wherever you want (or wherever anyone would accept it!).
What is that? The cashier at Target said they wouldn’t accept our coins?
Tell these skeptics that muttcoin has a paucity of value – there would only be a million motcoins in existence. Moreover, it is backed by the full faith and credit of this desktop 8GB RAM.
He also reminded them that a decade ago, Bitcoin couldn’t buy a box of gum. Now one Bitcoin can buy a lifetime offer.
And just like Bitcoin, you can store your muttcoin safely offline, away from hackers and thieves.
It is basically a replica of Bitcoin’s properties. Muttcoin has a decentralized ledger with impenetrable cryptography, and all transactions are immutable.
Still not convinced that our Muttcoins will be worth billions in the future?
Well that’s understandable. The truth is, launching a new digital currency is much more difficult than it appears, if not entirely impossible.
That’s why I believe Bitcoin has reached these levels with all odds. And because of its unique network of users, you will continue to do so.
Sure, there have been setbacks. But each of these setbacks ultimately led to higher prices. The last fall of 60% wouldn’t be any different.
Bitcoin’s success lies in its ability to create a global network of users ready to deal with it now or store it for later. Future prices will be determined by the pace of network growth.
Even in the face of unbridled price fluctuations, Bitcoin adoption continues to grow at an exponential rate. There are now 23 million wallets open globally, chasing 21 million Bitcoins. In a few years, the number of wallets could grow to include 5 billion people on the planet who are online.
Sometimes cryptocurrency new converts have been driven by speculation; Other times they would seek a store of value away from their home currency. In the past year, new apps like Coinbase have made it easier to recruit new users.
If you haven’t noticed, when people buy Bitcoin, they are talking about it. We all have this friend who bought bitcoin and then didn’t shut up about it. Yep, I’m guilty of this – and I’m sure quite a few of our readers are, too.
Perhaps subconsciously, bearers become heralds of blades because convincing others to purchase serves their self-interest in increasing the value of their property.
Bitcoin preaching – spreading the good word – is what miraculously pushed prices up from $ 0.001 to the most recent price of $ 10,000.
Who would have imagined that its pseudonymous creator, tired of the global banking oligopoly, launched an intangible digital resource to rival the value of the world’s largest currencies in less than a decade?
No religion, political movement, or technology has ever seen these growth rates. Then again, humanity was never interconnected.
Bitcoin started as an idea. To be clear, all the money – whether it was fake money used by the Neanderthals of the islands, a piece of gold or an American dollar – started as an idea. It’s an idea that a network of users values you equally and will be willing to part with something of equal value for your money form.
Money has no intrinsic value; Its value is purely external – just what other people think it deserves.
Take a look at the dollar in your pocket – it’s just a fancy piece of paper with a one-eyed pyramid, pixelated image and 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 demonstrated an incredible ability to reach and connect with a network of millions of users.
One bitcoin is only worth what the next person is willing to pay for it. But if the network continues to expand at an exponential rate, then the limited supply argues that prices can only move in one direction … up.
The bottom line
Bitcoin’s nine-year rise was marked by massive bouts of volatility. There was an 85% correction in January 2015, and a few more over 60%, including a massive 93% decline in 2011.
However, through each of these corrections, the network (measured by the number of portfolios) continued to expand at a rapid pace. As some speculators saw their value diminish, new margin investors saw value and became buyers.
It is actually abnormal levels of volatility that helped the Bitcoin network grow to 23 million users.
Hey, maybe we just need some price swings in muttcoin to attract new users …