Since it’s now in vogue, I’d like to announce that I’m launching my own cryptocurrency next week.
Let’s call it “kingcoin”.
No, it’s too useful.
How about “mothercoin”? I always had a soft spot to mixed breeds.
Yes, it’s perfect – everyone loves dogs.
This will be the biggest since the restlessness.
Congratulations! Anyone who reads this will get one matcoin when my new coin is released next week.
I’m going to evenly distribute 1 million matcoins. Feel free to spend them anywhere (or where anyone will take them!).
What is it? The cashier at Target said not to accept our matcoin?
Tell those who doubt that mutcoins have scarce value – there will only be 1 million matcoins ever. In addition, it is backed by the full faith and merit of 8GB of RAM on my desktop computer.
Also, remind them that ten years ago bitcoin couldn’t buy you even a pack of chewing gum. Now for one bitcoin you can buy a lifetime supply.
And, like bitcoin, you can safely store mutcoins offline, away from hackers and thieves.
In essence, this is an exact copy of the properties of bitcoin. Muttcoin has a decentralized book with cryptography that cannot be hacked, and all transactions are unchanged.
Are you still not sure that our mutcoins will be worth billions in the future?
Well, that’s understandable. The fact is that launching a new cryptocurrency is much harder than it seems, if not impossible.
That’s why I believe bitcoin has reached these heights in spite of everyone. And because of its unique network of users it will continue to do so.
Of course, there were setbacks. But each of these failures eventually led to higher prices. The recent 60% drop will be no different.
The miracle of bitcoin
The success of bitcoin lies in its ability to create a global network of users who are either willing to make transactions with it now, or keep it for later. Future prices will be determined by the growth rate of the network.
Even in the face of wild price fluctuations, the adoption of bitcoins continues to grow exponentially. There are now 23 million wallets worldwide, chasing 21 million bitcoins. In a few years, the number of wallets could increase to include 5 billion people on the planet connected to the Internet.
Sometimes the motivation of new cryptocurrencies was speculative; other times they sought to accumulate value away from their own national currency. In the last year, the emergence of new applications, such as Coinbase, has made it even easier to include new users.
If you haven’t noticed when people buy bitcoin, they talk about it. We all have a friend who bought bitcoin and then kept quiet about it. Yes, I’m to blame for that – and I’m sure quite a few readers too.
Perhaps subconsciously owners become crypto-evangelicals because persuading others to buy serves their own interests in increasing the value of their possessions.
The evangelization of bitcoin – the spread of the good word – has miraculously led to a rise in price from $ 0.001 to the recent price of $ 10,000.
Who would have thought that his pseudonym, fed up with the global banking oligopoly, launched an intangible digital resource that in less than a decade equaled the value of the world’s largest currencies?
No religion, political movement or technology has ever seen such growth. Again, humanity has never been so connected.
The idea of money
Bitcoin started as an idea. To be clear, all the money – whether it was money used by primitive islanders, a gold bar or the US dollar – started as an idea. It’s the idea that a network of users values it equally and will be willing to part with something of equal value for your form of money.
Money has no intrinsic value; its value is purely external – only what others think it is worth.
Take a look at the dollar in your pocket – it’s just a gorgeous piece of paper with a one-eyed pyramid, a portrait and signatures of important people.
To be useful, 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 amazing ability to reach and connect a network of millions of users.
One bitcoin is worth all that the next person is willing to pay for it. But if the network continues to expand at an exponential rate, limited supply argues that prices can only move in one direction … higher.
The nine-year rise of bitcoin has been marked by huge bouts of volatility. In January 2015, there was a correction of 85%, and in some others – more than 60%, including a colossal drawdown of 93% in 2011.
However, through each of these fixes, the network (by number of wallets) continued to expand rapidly. When some speculators saw their price go down, new margin investors saw the price and became buyers.
Abnormal volatility levels have actually helped bitcoin networks grow to 23 million users.
Hey, maybe we just need some price volatility in matcoins to attract new users …