Bitcoin reached its peak about a month ago, on December 17, at almost $ 20,000. As I write, cryptocurrency is under $ 11,000 … about 45% damage. It is more than that $ 150 billion with a lost market cap.
In blue comments, pay close attention to hand wipes and tooth decay. It is the neck, but I think that "I told you" so many people have the advantage of "justifying" it.
Here's the thing. As long as you haven't lost your shirt in bitcoin, it doesn't really matter. And chances are that the "experts" you can see in the press don't say why.
In fact, the bitcoin crash is great … because it means we can all just stop thinking about cryptocurrencies at all.
The Death of Bitcoin …
After a year and a half, people will no longer talk about bitcoin in the grocery store or on the bus as they are now. Here's why.
Bitcoin is a result of justified disappointment. Its designer apparently says the cryptocurrency was a reaction to the misappropriation of the Fiat currency in US dollars or euros. It was supposed to provide an independent, peer-to-peer payment system that was based on virtual currency that could not be borrowed as there was a final number.
This dream has long been shaken in favor of raw speculation. Ironically, most people care about bitcoin as it seems to be an easier way to get more fiat currency. They don't know it because they want to buy pizza or gas with it.
As well as being an awful means of trading electronically, it is slowly slowing down the success of bitcoin as a speculative game, making it useless as a currency. Why would anyone spend it if they value it so quickly? Who will accept one when it rapidly devalues?
Bitcoin is also a major source of pollution. One transaction lasts 351 kWh of electricity, which also emits 172 kg of carbon dioxide into the atmosphere. That's enough for a single US family to spend a year. To date, the energy consumed by all bitcoin mining can power nearly 4 million US households per year.
Paradoxically, the success of bitcoin as obsolete speculative game – not intended for libertarian use, – the government's obstruction was seized.
China, South Korea, Germany, Switzerland and France have implemented, or are discussing, prohibiting or restricting bitcoin trading. A number of intergovernmental organizations have called for concerted action to eliminate the apparent bubble. The US Securities and Exchange Commission, which at one time approved of bitcoin-based financial derivatives, now seems ambiguous.
According to Investing.com: "The European Union is enforcing stricter rules to prevent money laundering and terrorist financing on virtual currency platforms. It also takes into account the restrictions on crypto trading. ”
We can see functional, widely accepted cryptocurrency someday, but it won't be bitcoin.
… But it promotes crypto assets
Good. Adding Bitcoin allows us to see where the real value of cryptocurrencies is. Here's how:
Signs are needed to use the New York subway system. You can't use them to buy anything else … though you do could sell them to someone who wants to use the subway more than you.
In fact, if the subway signs had a limited supply, a vibrant market for them might have emerged. They can even trade a lot more than they were originally priced. It all depends on how many people he is I want take the subway.
That is, in a nutshell, the most promising "cryptocurrency" scenario besides bitcoin. They are not money, they are signs – "Cryptic signs", if desired. They are not used as a single currency. They are good only for the platform for which they are designed.
If these platforms provide valuable services, people will want those crypto tokens, and that will determine their price. In other words, crypto tokens will be of value to the extent that people value the things they receive from their surrounding platform.
It will make them real estate, with: intrinsic value – because they can be used to get something people appreciate. This means that you can reliably expect a revenue stream or service containing such passwords. Critically, you can measure that flow of future returns against the cryptocurrency price, just as we do when calculating the share price / earnings ratio (P / E).
On the contrary, Bitcoin has no inherent value. It only has a price – the supply and demand set price. It can't generate further revenue streams and you can't measure anything like the P / E ratio.
Someday it will make no sense because it is not realizing you.
Ether and other crypto assets are the future
Crypto-sign airtime for sure it seems like a currency. It is sold under cryptocurrency exchanges under the ETH code. Its symbol is the Greek capital Xi character. Mining is a bitcoin-like (but less energy-efficient) process.
But ether is not a currency. Its designers characterize it as "Ethereum's proprietary power distribution platform. It is a way of paying for the platforms' customers to perform the tasks required by the platform. "
Ethernet allows you to access one of the most complex distributed computing networks in the world. It is so promising that big companies fall for each other to develop practical, real-world applications for it.
Because the people who go with it don't really understand or think about its true purpose, the price of ether has been bubbling and bubbling in recent weeks.
Eventually, the airline will return to a stable price based on the demand for computing services that it can "buy" for people. This price will be presented True value it can have a price in the future. There will be a future futures market and exchange-traded funds (ETFs), as everyone will have their own valuation form over time. As always as we do with stocks.
What is that value? I have no idea. But I know it will be much more than bitcoin.
My advice: Get rid of your bitcoin and buy it next time.