Because it is currently en vogue right now, I’d like to announce that I’m launching my own cryptocurrency next week.
Let’s call it “kingcoin.”
Nah, that’s too self-serving.
How about “muttcoin”? I have always had a soft spot for mixed breeds.
Yeah, that is perfect – everybody loves dogs.
This is going to be the biggest thing since fidget spinners.
Congrats! Everyone reading this’s going to get one muttcoin when my new coin launches next week.
I am going to evenly distribute 1 million muttcoins. Feel free to spend them wherever you like (or right where anyone will accept them!).
What’s that? The cashier at Target said they wouldn’t accept our muttcoin?
Tell those doubters that muttcoin has scarcity value – there’ll only ever be one million muttcoins in existence. On top of that, it is backed by the full faith and credit of my desktop computer’s eight GB of RAM.
Also, remind them that a decade ago, a bitcoin could not even buy you a pack of chewing gum. Now one bitcoin is able to buy a lifetime supply.
And, like bitcoin, you can store muttcoin safely offline away from hackers and thieves.
It’s essentially an exact replica of bitcoin’s properties. Muttcoin has a decentralized ledger with impossible-to-crack cryptography, and all transactions are immutable.
Still not convinced our muttcoins will be worth billions in the future?
Well, it’s understandable. The fact is, introducing a brand new cryptocurrency is much more difficult than it appears, or even downright impossible.
That is why I believe bitcoin has reached these heights against all odds. And because of its unique user network, it is going to continue to accomplish that.
Sure, there have been setbacks. But each of these setbacks has ultimately resulted in higher prices. The latest 60 % plunge is going to be no different.
The Miracle of Bitcoin
Bitcoin’s success rests in its power to create a global network of users who are either willing to transact with it right now or perhaps store it for later on. Future prices will be influenced by the pace that the network grows.
Even in the face of wild price swings, bitcoin adoption continues to grow at an exponential rate. There are now 23 million wallets open globally, chasing 21 million bitcoins. In a several years, the number of wallets are able to rise to include the 5 billion folks on the planet connected to the web.
Sometimes shiba inu coin cryptocurrency was speculative; other times they had been trying to find a store of value away from their own domestic currency. In the last year, new applications along the lines of Coinbase have made it even easier to onboard new users.
If you haven’t noticed, when people buy bitcoin, they talk about it. We have that friend who bought bitcoin and then wouldn’t shut up about it. Indeed, I’m responsible for this – and I am sure quite several readers are too.
Maybe subconsciously, holders become crypto evangelists since convincing others to buy serves their own self interest of increasing the value of their holdings.
Bitcoin evangelizing – spreading the good word – is what miraculously resulted in a price ascent from $0.001 to a recent price of $10,000.
Who could have imagined that its pseudonymous creator, fed up with the global banking oligopoly, launched an intangible digital resource that rivaled the value of the world’s largest currencies in only a decade?
No religion, political movement or even technology has ever witnessed these growth rates. Then again, humanity has never been as connected.
The Idea of Money
Bitcoin started as an idea. To be clear, all money – whether it’s shell money used by primitive islanders, a bar of gold or a U.S. dollar – started as an idea. It is the notion that a network of users value it equally and would be ready to part with something of equal value for the form of yours of money.
Money has no intrinsic value; its value is purely extrinsic – just what others think it is worth.
Check out the dollar in the pocket of yours – it’s really a fancy piece of paper with a one-eyed pyramid, a stipple portrait and signatures of people which are important.
In order to be handy, 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 uncanny ability to reach and connect a system of millions of users.
One bitcoin is just worth what another person is willing pay for it. But if the community continues to expand at an exponential rate, the limited supply argues that prices are only able to move in one direction… higher.
The Bottom Line
Bitcoin’s nine year ascent has been marked with enormous bouts of volatility. Therewas an eighty five % correction in January 2015, and a number of others over sixty %, including a colossal 93 % drawdown in 2011.
Through each of these corrections, however, the network (as measured by number of wallets) continued to expand at a quick rate. As some speculators saw their value decimated, new investors on the margin saw value and became buyers.
The abnormal amounts of volatility are actually what helped the bitcoin network grow to twenty three million users.
Hey, maybe we just need a bit of price volatility in muttcoin to attract new users…