Since it is currently in vogue right now, I would like to announce that I will be launching my own cryptocurrency next week.
Let’s call it “kingcoin”.
No, it’s too self-service.
How about “muttcoin”? I’ve always had a soft spot for mixed breeds.
Yes, it’s perfect – everyone loves dogs.
This will be the most important from fidget spinners.
Congratulations! Everyone who reads this will receive a muttcoin when I launch my new currency next week.
I will evenly distribute 1 million muttcoins. Feel free to spend them wherever you want (or wherever everyone accepts them).
What is this? Did the Target cashier say he would not accept our muttcoin?
Tell those who doubt that muttcoin has a scarcity value – there will only be 1 million muttcoins. Plus, it’s backed by the faith and credit of my desktop’s 8GB of RAM.
Also, remind them that a decade ago, a bitcoin couldn’t even buy you a packet of chewing gum. Now a bitcoin can buy a lifetime supply.
And, like bitcoin, you can store muttcoin securely offline, out of hackers and thieves.
It is basically an exact replica of the properties of Bitcoin. Muttcoin has a decentralized ledger with unbreakable cryptography, and all transactions are immutable.
Still not convinced that our muttcoins will be worth billions in the future?
Well, it’s understandable. The fact is that launching a new cryptocurrency is much more difficult than it seems, if not impossible.
That’s why I think Bitcoin has reached these levels against all odds. And, because of its unique user network, it will continue to do so.
Of course, there have been setbacks. But each of these setbacks has ended up causing higher prices. The recent 60% drop will be no different.
The miracle of Bitcoin
Bitcoin’s success lies in its ability to create a global network of users who are willing to transact with it now or store it for later. Future prices will be determined by the growth rate of the network.
Even in the face of wild price changes, bitcoin adoption continues to grow at an exponential rate. There are now 23 million open wallets worldwide, pursuing 21 million bitcoins. In a few years, the number of portfolios may increase to include the 5 billion people on the planet connected to the Internet.
Sometimes the motivation of new cryptocurrencies was speculative; other times they sought a reserve of value far removed from their own national currency. In the last year, new applications such as Coinbase have further facilitated the incorporation of new users.
If you haven’t noticed, when people buy bitcoins, talk about it. We all have that friend who bought bitcoins and then didn’t shut up. Yes, I am guilty of it, and I am sure there are many readers as well.
Perhaps unconsciously, the headlines become crypto-evangelists, as convincing others to buy serves their own self-interest to increase the value of their holdings.
The evangelization of Bitcoin (spreading the good word) is what miraculously led to a rise in prices of $ 0.001 to a recent price of $ 10,000.
Who would have imagined that its creative pseudonym, fed up with the global banking oligopoly, would launch an intangible digital resource that would rival the value of the world’s largest currencies in less than a decade?
No religion, political movement or technology has ever witnessed these growth rates. Again, humanity has never been so connected.
The idea of money
Bitcoin started as an idea. To be clear, all money, whether shell money used by island primitives, a gold bar or a US dollar, started as an idea. It’s the idea that a network of users values you equally and would be willing to part with something of equal value to your form of money.
Money has no intrinsic value; its value is purely extrinsic, just what others think is worth it.
Take a look at the dollar you have in your pocket – it’s just an elegant piece of paper with a one-eyed pyramid, a ready-made portrait, and signatures of important people.
To be useful, society must consider it as a unit of account and merchants must be willing to accept it as payment for goods and services.
Bitcoin has demonstrated a strange ability to reach and connect a network of millions of users.
A bitcoin is only worth what the next person pays. But if the network continues to expand at an exponential rate, limited supply argues that prices can only move in one direction … higher.
The end result
The nine-year rise of Bitcoin has been marked by huge volatility crises. There was an 85% correction in January 2015 and some more than 60%, including a colossal 93% reduction in 2011.
However, with each of these corrections, the network (measured by the number of portfolios) continued to expand at a rapid pace. As some speculators saw their value decimated, new margin investors saw value and became buyers.
Abnormal levels of volatility are what helped grow the bitcoin network to 23 million users.
Hey, maybe we just need some price volatility in muttcoin to attract new users …