If you’re in crypto, trading, hodl, or just a fan of revolutionary technology, you’ve probably heard this at least once: “Bitcoin?Come on, it’s a bubble. ” Maybe not the precise words, but probably with this meaning: you are wasting your time, brother. In this article, we’re going to take a look at some of the biggest myths about the first cryptocurrency that other people tend to build. and see if they make sense.
An intrinsic cost of a commodity is the overall cost of that product. Since the cost of food is the amount of energy it provides you, the cost of a product can also be described as the value that other people would pay to get it.
Today, only a few coins are subsidized through valuable metals like gold and silver and have an understandable intrinsic price, but fashionable fiat cash is government-issued cash that is not subsidized through a physical product and its price basically comes from economic stability. of the issuing government.
The call and source of cash also plays a vital role in the formation of its value, we settle for them in exchange for goods or because we perceive that in turn they can be exchanged to unload other goods or Array.
Similarly, Bitcoin and maximum cryptocurrencies are also not subsidized through valuable metals or other physical assets, therefore, the price of a cryptocurrency is decided through acceptance as true of network participants, use cases, and demand-supply. proportion.
Fact: Bitcoin consumes around 110 terawatt hours consistent with the year, which accounts for about 0. 55% of the world’s electric power generation, roughly the annual energy consumption of small countries like Malaysia.
Another fact: for every kilogram of gold mined, 48. 6 megawatt hours of energy are required. This number more or less doubles when the extra energy is required to process coins and gold bars. year to the total gold reserves of the surface.
The amount of energy expended in mining provides a price to gold, so it has been identified globally as a medium of exchange. The procedure requires power, but in turn, consumers (such as banks, investors) get a low price.
The force fueled through Bitcoin protects its protocol, while the maximum classical banking systems and some other blockchain projects are easy to attack or not decentralized enough.
In addition, Bitcoin miners basically use the cheapest electricity resources, which means that energy that has been produced for some reason, but lately does not have enough demand, such as overbuilt hydroelectric dams or stranded oil and fuel wells. Resources are commonly used through miners and statistics show that hydroelectric, solar and wind stations serve between 20 and 70% of Bitcoin mining.
There are several reasons why it would be incredibly complicated for primary capital markets such as the United States, Europe or Japan to ban Bitcoin.
An attempt to ban it would be perceived as an attack on the balances of the companies, funds, banks and investors that own it, so the concept of banning cryptocurrencies would be popular among the millions of electorates that own it.
Now for the technical part. Bitcoin is not a physical object that can be placed on a network and is very unlikely to buy. It runs on the Internet and is a software program code. The government could try to ban its citizens from using the network, but Bitcoin will continue to function online.
From the point of view of miners, Bitcoin is the opposite of a monetary pyramid. The Bitcoin protocol is designed as an arms race. The more force your PC produces, the more likely you are to get the block reward. a new miner invites the protocol to the mining difficulty.
Now let’s take a look at the cryptocurrency market and the position Bitcoin takes in it. As in classic inventory markets, the value of cryptocurrency is explained through other independent points such as source and demand, use cases, people’s trust, etc. , the value of Bitcoin is halfway between the value of the offer and the value of the offer established through traders. There is no single authority influencing value, it is technically impossible.
It’s hard for other people to buy Bitcoin as a speculative investment, but that doesn’t mean Bitcoin is a bubble.
Bitcoin has gone through several value cycles. However, he recovered each time, enjoying new heights. You can check this through the value table of bitcoin’s annual candlesticks.
For every new technology, costs go up and down. Possibly, at the end of the punto. com era in the ’90s, Amazon’s inventory went from around $100 to $5. Over the next few decades, it has become one of the most valuable corporations in the world.
Some monetary analysts say that Bitcoin will rise and fall with fewer fluctuations and longer periods until at some point in the long term it is established in relative stability.
Crypto exchanges are not a thing in our trendy virtual world. By doing a Google search, you can locate millions of Internet sites where you can buy and sell virtual assets. However, there is something you need to be careful of before signing up for the crypto platform. :
Certification: The company must be regulated, have an SSL certificate, provide 2-factor authentication, and download a PCI DSS certificate for card payment processing.
Reliable Deposit and Withdrawal Features: You can deposit and withdraw budget at any time, so a variety of reliable payment features are a must.
Intuitive Interface: This is mandatory for your convenience when buying and promoting cryptocurrencies. Also, if you have confusing navigation, your transactions will likely come with hidden fees.
Introducing CEX. IO USA, a global crypto exchange with the highest liquidity rates, is a component of the CEX ecosystem. IO of fintech and crypto trading products, where you can buy Bitcoin (BTC) and a wide diversity of other virtual assets by paying with your debit or credit card, SWIFT, ACH, Skrill, etc.
Founder Dinis Guarda
IntelligentHQ Your new network.
IntelligentHQ is a network of corporations and experts in finance, capital markets and intelligence for thousands of professionals, startups and corporations around the world.
We exist at the intersection of technology, social media, finance and innovation.
IntelligentHQ leverages the innovation and scale of virtual social technology, analytics and distribution to create an unprecedented spectrum of virtual media and social affairs networks.
IntelligentHQ is becoming a reliable and indispensable source of business data and research within monetary facilities and their related source chains and ecosystems.