A few weeks ago economist Nouriel Roubini said, famous for predicting the financial crisis of 2008, that “99% of cryptocurrencies had a zero value.” And that we were facing the biggest bubble in history in this entire ecosystem, including the underlying technology. As an example of this theory, I saw that today, seeing 70% falls from highs in the case of Bitcoin (BTC), was an unequivocal symptom of that collapse. Finally, he argued that of the ICOs carried out to date, 81% were fraudulent, 11% had failed and that, of the remaining 8% that is negotiated in the “Exchanges”, value losses reached an average of 90% for the first 10 majors. With bitcoin trading, one can get up to 300% investment returns.
Although it cannot be refuted that it has been paid for all the excesses committed and that, many speculators have lost much of the risky amount of being carried away by the euphoria of the moment, that does not mean that we are facing the end of Bitcoin or the criptoactivos.
As happened in the dotcom bubble, this cleaning and adjustment process will serve, in my view, to establish the foundations of a market and some winners that really add value and, in passing, to remove from the system all those who They wanted to take advantage of the irrational moment lived.
In that sense, seeing what is happening today and despite the criticism of Roubini, I am very clear that the future is not black for Bitcoin (BTC) or for some outstanding projects. If that were so, we would not be attending a series of milestones that indicate just the opposite.
First, the sale of tokens continues to set records in terms of financing achieved. If we take the period between January and September of this year and, based on the FabricVentures report, the amount at that date amounts to more than 12,000 million dollars.
Although it is necessary to clarify that two projects (EOS and Telegram) reach 40% of the total and have specific characteristics, it is no less true that of the 981 projects launched in 2018, almost half have been successfully completed, an issue that does not leave If it is a success in the above-mentioned environment and a clear sign that the investor is able to identify those ideas with real utility potential. How reliable is the Bitcoin virtual currency?
Around this payment system, there are many myths and concerns, as well as criticism and praise. But, which opinion to be guided by? Knowing More, Being More tells you the origin of “the Internet currency”, how it works and what makes it so peculiar.
Bitcoin is a decentralized currency, that is, it does not have the supervision of any government, institution or state or private financial entity, unlike traditional currencies such as the Euro, controlled by the European Central Bank, or the Reserve Dollar United States Federal. This feature reverts to anonymous and encrypted transactions between its users, so they are free of any commission or tax, such as VAT.
Are you wondering how much Bitcoin costs and how it is acquired?
Well, the value of this currency is based on supply and demand, it is also calculated by means of an algorithm that takes into account movements and transactions with Bitcoin in real-time. This currency is characterized by its high volatility, in November 2013 a Bitcoin was worth 1,200 dollars, just one year later its value had fallen by 80% and stood at 250 dollars.
As for how to get it, there are three ways to do it: exchanging conventional money (dollars or euros) in a Bitcoin Exchange; paying for goods and/or services with this currency, or through mining, a practice that consists of using part of the resources of a computer to solve mathematical problems in exchange for Bitcoins.
Once you have purchased the Bitcoins you can trade through mobile applications, which are used for any operating system such as: ‘MultiBit‘ or ‘Bitcoin Wallet‘.
What advantages does Bitcoin offer?
- You can send and receive the amount of money you want, from and to anywhere in the world.
- The payments have very low rates or even many times they do not.
- Protect the personal data of customers.
Various Types of Bitcoin Wallets
And what disadvantages?
- Volatility, your money can be worth double or half in a very short time.
- The number of businesses that use and accept it as a means of payment is very small.
- Bitcoin software is still in development, a feature that decreases its accessibility to the public.
So that was the future of bitcoin and it’s ecosystem.