Because of the trend right now, I want to announce that I will be launching my own cryptocurrency next week.
Let’s call it “kingcoin.”
Nah, that’s too much self -service.
How about “muttcoin”? I always have a soft spot for different ingredients.
Yes, that’s perfect – everyone loves dogs.
This is going to be the biggest thing since fidget spinners.
Congrats! Everyone who reads this will receive a muttcoin when my new coin is launched next week.
I will give the same 1 million muttcoins. Feel free to spend them wherever you want (or wherever anyone will accept them!).
What is it? The Target cashier said they would not accept our muttcoin?
Tell skeptics that muttcoin has a scarce value – there are only one million muttcoins in existence. What’s more, it’s backed up in full faith and credited with 8 GB of RAM on my desktop computer.
Also, remind them that a decade ago, a bitcoin couldn’t even buy you a pack of chewing gum. Now a bitcoin can buy a lifetime supply.
And, like bitcoin, you can keep muttcoin safe offline from hackers and thieves.
It is basically an exact copy of bitcoin assets. Muttcoin has a decentralized ledger with impossible-to-crack cryptography, and all transactions are unalterable.
Not yet convinced that our muttcoins will be billions in the future?
Well, that’s understandable. The truth is, launching a new cryptocurrency is more difficult than it looks, if not absolutely impossible.
That’s why I believe bitcoin has reached these heights against all odds. And because of its unique user network, it will continue to do so.
Sure, there are failures. But each of these failures eventually resulted in higher prices. The recent 60% decline is no different.
The Miracle of Bitcoin
The success of Bitcoin depends on its ability to create a global network of users willing to transact with it now or store it later. Future prices will be determined by the rapid growth of the network.
Even in the face of wild price fluctuations, bitcoin adoption continues to grow at an exponential rate. There are now 23 million wallets open worldwide, chasing 21 million bitcoins. In a few years, the number of wallets could rise to include the 5 billion people on the planet connected to the internet.
Sometimes the motivation for new crypto converts to speculative; other times they are looking for a store that is worth away from their own money. Last year, new applications like Coinbase made it even easier to catch up with new users.
If you haven’t noticed, when people buy bitcoin, they mention it. We all have that friend who buys bitcoin and then doesn’t keep quiet about it. Yes, I’m guilty of it – and I’m sure some will read too.
Perhaps subconsciously, holders become crypto-evangelists since convincing others to buy serves their own interest in increasing the value of their assets.
The evangelization of Bitcoin – the spread of the good word – was the miraculous cause of the price rise from $ 0.001 to the new price of $ 10,000.
Who would have imagined that its pseudonymous creator, already fed up with the global banking oligopoly, would have launched an intangible digital resource that would compete for the value of the world’s largest currency in less than a decade?
No religion, political activity or technology has witnessed these growth rates. Once again, people have never been connected.
The Idea of Money
Bitcoin started out as an idea. To be clear, all money – whether it’s the money used by the ancient islanders, a bar of gold or a U.S. dollar – started out as an idea. It’s the idea that a network of users alike value it and are willing to share something of equal value for your form of money.
Money has no intrinsic value; its value is purely extrinsic – just what others think is appropriate.
Look at the dollar in your pocket – it’s just a beautiful piece of paper with a pyramid eye, a stipple picture and signatures of important people.
To be profitable, society must view it as a unit of account, and merchants must be willing to accept it as payment for goods and services.
Bitcoin demonstrates a unique ability to reach and connect to a network of millions of users.
A bitcoin is only worth what 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 Bottom Line
Bitcoin’s nine -year rise has been marked by several explosions in succession. There was an 85% correction in January 2015, and some others over 60%, including a huge 93% drawdown in 2011.
Through each of these corrections, however, the network (as measured by the number of wallets) continues to expand at a rapid pace. While some speculators saw their value run out, new margin investors saw value and became buyers.
The abnormal level of volatility is what really helped the bitcoin network grow to 23 million users.
Hey, maybe we just need some muttcoin price sequencing to attract new users …