One year after reaching ATH (All Time High) Bitcoin is in the long run to the current $ 3,400. If we take into account that in the best days of December 2017 it was worth $ 20,000 on some exchange offices, today’s 80% price is less appealing to some and they believe that Bitcoin is a scam. But is Bitcoin a scam?
Bitcoin has “died” more than 300 times, and has been raised so many times from the dead that it is stupid to even consider that it will disappear. In addition, most of those who believe Bitcoin and blockchain fraud will disappear are probably not even able to explain these two terms and at least two cases of application.
That is why, in the following section, read in detail what Bitcoin is and what is blockchain, what is Bitcoin’s future, and whether other cryptocurrencies are even needed or not if we have Bitcoin.
What is blockchain and why is it so innovative?
It is unbelievable how much journalists have bombarded Bitcoin and blockchain technology at the beginning, not at all informed about it and its advantages in solving certain problems. I often came across an internet article or TV show where these two terms are mentioned and I have to admit that in most cases what is told there is not true. Even the invited guests themselves know that they don’t understand blockchain technology and even its application very well, but are still invited to participate in the show.
This is the reason for this article and you can read some real-life examples of using blockchain technology and its explanation in it.
The Blockchain is a growing list of records that are called blocks, and are linked by cryptography. Each block contains a record of the previous one, such as creation time and data, and blocks are impossible to modify or delete.
This is just one of the most important features of blockchain and therefore brings transparency to many fields. It was created in 2008 by an unknown author known only as Satoshi Nakamoto and its first application is the publicly available Bitcoin transaction book.
The blockchain is unbelievable, but it is NOT solution to all the problems!
Interestingly, during Bitcoin’s popularity, everybody has been talking about blockchain technology and Bitcoin every day and what they do. Today, this is a little bit of a lesser case, but if a new bull market comes up with cryptocurrency – they will surely talk about this again.
After the last increase in price, many big companies have decided to create their own cryptocurrency or blockchain on which to base their business and that is precisely the main reason for the optimism of investors in cryptocurrencies. All of these companies continue to work diligently, and this technology becomes more and more used day by day, and when (if) massive use comes those who early invested in Bitcoin will get some of the cake.
Now that we are closer to the blockchain and its function, we will address the first block of Bitcoin in the next section.
Bitcoin creates a new payment system
Bitcoin was released on paper in 2008 by Satoshi Nakamoto and it brings a new world currency that will solve the problems of paying in the whole world. Of course, the paper is all about suffering, but is it really so?
Unfortunately, it is not, because Bitcoin proved to be a very bad transaction system when it was at the peak of December 2017.
Bitcoin Cash, which came from the Bitcoin, sought to create Satoshiye’s vision and enable fast and inexpensive transactions, but there are much better currencies on the market. Although Bitcoin is progressing and transactions are cheaper and faster than before, many other cryptocurrencies like IOTA or Stellar allow much cheaper and faster transactions and therefore they are more used as money, and Bitcoin becomes an electronic gold.
Currently, Bitcoin’s name is on the top, and this will certainly not change for a long time, but we believe that Bitcoin will become a global currency very difficult and that other cryptocurrencies are more likely to become one.
Another reason for this is a big change of price, Bitcoin has no cover and is not tied to the dollar, and its price can vary by more than 20% in the day-to-day market.
Bitcoin provides a peer-to-peer payment system without a central institution that processes transactions and charges services. Because of this, Bitcoin seeks to fully decentralize money and allow payment to people and the entire cash system to keep for themselves. As a solution to this, it offers cheap and fast transactions, and the public wallet and transaction book allows transparency. Although Bitcoin is anonymous, all its transactions are publicly recorded.
In this way, it is possible to reduce inflation and keep money transparent without the ability to print and create new money.
Bitcoin owes its popularity to anonymity recognized on the dark web, where Bitcoin is used to trade in drugs, weapons, and even some of the larger forms of crime. Although many consider this to be the black side of Bitcoin and condemn its future on that basis, it is important to note that paper money is also used for crime and the like.
But although Bitcoin is the first cryptocurrency, it is not the only crypto on the market.
Other cryptocurrencies are fraud ?!
Many people believe that Bitcoin is the only cryptocurrency, and all other cryptocurrencies are unnecessary and fraud because they serve the same purpose. Of course, this is not so, because they wouldn’t be worth a few billion dollars.
In most cases, other cryptocurrencies are far more advanced than Bitcoin, and their function is integrated into an application. This allows you to pay for computers without the need for people. Ethereum and smart contracts allow such things, and Ethereum is also the most used blockchain and allows applications to be created. Many of the cryptocurrencies on the market are exactly the ERC-20 tokens created on the Ethereum blockchain and used for functionality.
Cryptocurrencies are not necessary for people, but they allow decentralization, fast and cheap payments, and accelerate technological evolution.
What kind of future awaits Bitcoin?
This is probably a question that no one can know the answer to, but everyone has the right to their own opinion. So I believe that cryptocurrencies and blockchain will experience the growth and begin to be massively used, which does not necessarily mean that their price will rise to the sky. It should be known that blockchain is now in a phase of what the Internet was in the 90s and has many opportunities for progress.
Perhaps Bitcoin is a future that will replace gold throughout this digitalization process of the world. It is easy to store, does not occupy space, transferring from point A to point B takes place very quickly and at no cost. These are just some of the advantages of gold or silver currently in the market.
The Bitcoin and blockchain are still at the very beginning and their trading, storage and everything about them is difficult. If Bitcoin comes to the US stock market, the price will surely grow, and for comparison, look below the graph of gold after the ETF and Bitcoin is still in process. The picture shows that in the case of ETF approval, there will be a significant rise in prices.
What is the future waiting for other cryptocurrencies?
There are indeed good cryptocurrencies on the market that have interesting projects behind them and offer good solutions to some problems, but there are those whose price is overwhelmed and will surely blow over time. When investing in crypto, one should be careful about who is behind the project and what kind of solution offers such a project. In the madness of price growth of Bitcoin many have started creating blockchain projects that are unnecessary and blockchain implementation in such an application is unnecessary.
The cryptocurrencies like Bitcoin, which is the most known and the first cryptocurrency or Ethereum whose blockchain is based on a lot of decentralized applications and ERC-20 tokens are today considered to be digital gold. If they will be implemented in use in the future they should increase their worth considerably. Price quotation and its forecast would be embarrassing in this market, full of ups and downs, but the real situation is that crypocurrencies are increasingly represented in the world, and as their demand and use grow, their price rises.
Should I invest in cryptocurrencies?
As with stocks or bookmakers, the bet is unsafe and by the very investment, you have to be prepared to lose the bet. That is why you never invest more than you are willing to lose. But should you invest in cryptocurrencies?