As it is currently in vogue at the moment, I would like to announce that I am launching my own cryptocurrency next week.
Let’s call it kingcoin.
No, this is too self-serving.
How about “muttcoin”? I have always had a soft spot for mixed breeds.
Yes, that’s perfect – everyone loves dogs.
This will be the biggest thing since the carousels are spinning.
Congratulations! Anyone reading this will receive a mutcoin when my new coin launches next week.
I will evenly distribute 1 million mutcoins. Feel free to spend them wherever you want (or wherever someone will accept them!).
What is this? The cashier at Target said they wouldn’t accept our mutcoins?
Tell those who doubt that mutcoins are in short supply – there will only be 1 million mutcoins. On top of that, this is backed by the full faith and credit of 8 GB of RAM on my desktop computer.
Also remind them that a decade ago, Bitcoin couldn’t even buy you a pack of chewing gum. Now a bitcoin can buy a lifetime supply.
And like bitcoins, you can store mutcoins safely offline, away from hackers and thieves.
In essence, this is an exact copy of the properties of bitcoin. Muttcoin has a decentralized book with unbreakable cryptography and all transactions are unchanged.
Still not convinced that our mutcoins will cost 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 believe that bitcoin has reached these heights at every chance. And because of its unique user network, it will continue to do so.
Of course, there were setbacks. But each of these failures eventually led to higher prices. The recent 60% decline will not be any different.
The miracle of bitcoin
Bitcoin’s success is based on 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 with wild price fluctuations, bitcoin acceptance continues to grow at an exponential rate. Currently, 23 million wallets are open in the world, pursuing 21 million bitcoins. In a few years, the number of wallets could increase to include the world’s 5 billion people connected to the Internet.
Sometimes the motivation of new crypto converters is speculative; other times they were looking for a stock of value away from their own currency. In the last year, new applications such as Coinbase have made it even easier for new users to join.
If you haven’t noticed when people buy bitcoin, they talk about it. We all have this friend who bought bitcoin and then wouldn’t shut up about it. Yes, I’m guilty of it – and I’m sure there are quite a few readers.
Perhaps subconsciously, owners become crypto-evangelicals because persuading others to buy serves their own interest in increasing the value of their possessions.
Bitcoin evangelization – the spread of the good word – has miraculously led to a price increase of $ 0.001 to a recent price of $ 10,000.
Who could have imagined that its pseudonym creator, fed up with the global banking oligopoly, was launching an intangible digital resource that rivals the value of the world’s largest currencies in less than a decade?
No religion, political movement or technology has witnessed these growth rates. Humanity has never been so connected then.
The idea of money
Bitcoin started as an idea. To be clear, all the money – whether it was shell money used by primitive islanders, a gold bar or a US dollar – started as an idea. The idea is that a network of users value it equally and would like to part with something of equal value for your form of money.
Money has no inherent value; its value is purely external – only what others think is worth it.
Look at the dollar in your pocket – it’s just an elegant sheet of paper with a one-eyed pyramid, a thin 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 demonstrates an unusual ability to reach and connect a network of millions of users.
One bitcoin costs only what the next is willing to pay for it. But if the network continues to expand at an exponential rate, limited supply claims that prices can only move in one direction … higher.
Bitcoin’s nine-year climb has been marked by huge bouts of instability. In January 2015, there was an 85% correction and several others over 60%, including a colossal absorption of 93% in 2011.
Through each of these adjustments, however, the network (measured by number of portfolios) continues to expand rapidly. As some speculators saw their value diminished, new margin investors saw the value and became buyers.
Abnormal levels of instability are actually what helped the bitcoin network grow to 23 million users.
Hey, maybe we just need price volatility in muttcoin to attract new users …