Since it is currently en vogue right now, I’d love to announce I’m launching my own cryptocurrency next week.
Let us call it “kingcoin.”
Nah, that’s too self-serving.
How about “muttcoin”? I’ve always had a soft spot for mixed breeds.
Yeah, that’s perfect – everybody loves dogs.
This is going to be the biggest thing since fidget spinners.
Congrats! Everyone reading this is likely to receive one muttcoin when my new coin launches next week.
I’m going to evenly distribute one million muttcoins. Feel free to spend them anywhere you like (or right where anyone will accept them!).
What is 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 8 GB of RAM.
Also, remind them that a decade ago, a bitcoin couldn’t 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 from thieves and hackers.
It’s basically an exact replica of bitcoin’s properties. Muttcoin has a decentralized ledger with impossible-to-crack cryptography, and most transactions are immutable.
Still not convinced our muttcoins are going to be worth billions in the future?
Effectively, it is understandable. The truth is, introducing a new cryptocurrency is much tougher than it appears, if not downright impossible.
That is why I believe bitcoin has reached these heights against all odds. And due to its unique user network, it will continue to do so.
Without a doubt, there have been setbacks. But each of these setbacks has eventually resulted in higher prices. The recent sixty % plunge will be no different.
The Miracle of Bitcoin
Bitcoin’s success rests in its potential to make a worldwide community of users that are either prepared to transact with it now or perhaps store it for future use. Future prices will be influenced by the pace that the community grows.
Even in the face of wild price swings, bitcoin adoption continues to grow at an exponential rate. There are now twenty three million wallets open globally, chasing 21 million bitcoins. In a several years, the number of wallets are able to rise to include the five billion individuals on the planet connected to the world wide web.
Sometimes the new crypto converts’ motivation was speculative; other times they had been trying to find a store of value away from their very own domestic currency. In the last year, new applications such as Coinbase have made it even much better to onboard new users.
In the event you haven’t noticed, when folks buy bitcoin, they talk about it. We all have that friend who bought bitcoin after which wouldn’t shut up about it. Yes, I’m guilty of this – and I am certain quite several readers are too.
Perhaps subconsciously, holders become crypto evangelists since convincing others to buy serves their own self-interest of increasing the value of the holdings of theirs.
Bitcoin evangelizing – spreading the good word – is what miraculously led to a price ascent from $0.001 to a current price of $10,000.
Who could have imagined that shiba inu coin cryptocurrency , fed up with the global banking oligopoly, launched an intangible digital resource that rivaled the value of the world’s largest currencies in less than a decade?
No religion, political movement or even technology has ever witnessed these growth rates. On the other hand, humanity has never been as connected.
The Idea of Money
As an idea was started by Bitcoin. To be clear, all money – whether it’s shell money used by primitive islanders, a bar of gold or perhaps a U.S. dollar – started as an idea. It’s the idea 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 cash.
Money has no intrinsic value; its value is purely extrinsic – just what others think it’s worth.
Have a look at the dollar in the pocket of yours – it’s just a fancy piece of paper with an one eyed pyramid, a stipple portrait and signatures of people which are important.
To be able to be handy, society must view it as a unit of account, and merchants must be ready to accept it as payment for services and merchandise.
Bitcoin has demonstrated an uncanny ability to reach and connect a network of millions of users.
One bitcoin is only 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 85 % correction in January 2015, plus several others over sixty %, including a colossal ninety three % drawdown in 2011.
Through every one of these corrections, nevertheless, the network (as measured by number of wallets) went on to expand at a rapid speed. 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 simply need some price volatility in muttcoin to attract new users…