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RE: 50 Shades Of Cryptocurrency : The Noobies Chapter/Series
can somone explaine to me how does bitcoin create value and how does forking into 2 currency increased it's value O.o
can somone explaine to me how does bitcoin create value and how does forking into 2 currency increased it's value O.o
Think of BTC as gold. How does gold create value? Because people are willing to trade fiat currency for gold, at a rate of exchange that is constantly changing.
There is a limit to how much gold there is on earth. Getting the "next ounce" of gold becomes increasingly more difficult over time. There is a limited amount of BTC, getting the next BTC becomes increasingly more difficult over time.
Although (some believe) that gold is a decent store of value over longer periods of time, gold is not recognized as a useful currently to use to buy everyday items at the grocery store. You have to convert into fiat to buy your groceries.
And now for the most controversial part of my answer - I believe BTC is as useful for everyday transactions as gold is today. Not very. And will never be the appropriate currency to use for every day transactions.
There are and will be many ways of transacting that are going to be permanently far superior to either gold or BTC.
Gold and BTC probably always have an important niche to play in total financial system. But not as a daily method of exchange or transactions.
Gold is a rare metal that has numerous industrial and medical uses besides monetary uses. Forking off more forks from bitcoin won't create more value. As a matter of fact it is harmful since new investors will get confused about the different forks and stay away or instead go invest into other alt coins.
There are some industrial and medical uses for gold. But in small proportion to the comparable scope of uses for silver, and yet silver is a fraction of the price. Gold price is not due primarily to industrial and medical uses. Gold price is due mostly to gold being gold.
Yes I agree. Btw the price of silver is so cheap right now. Wonder why.
over simplification...but good points. You do also realize the gold standard of the past is what brought about the great depression, right? Because humans are inherently greedy!
Simplification. Agreed. How much can you achieve in 8 sentences? Many different rationales have been put forward for great depression. Inept government policies are top of my list of explanations
i guess i get a part of it now but cryptocurency is so confusing to me . miner create bitcoin every 10 minut as a reward for securing it ? i'm i correct ? . but i heared that the amount of reward decrease exponentially
so bitcoin will became insecure when the reaward reach 0 ? cause miner will not get paied
Bitcoin is backed by the time and effort it takes to create one bitcoin. Now it's backed by The demand, the number of people that use bitcoin, and the hundred thousand stores that except the bitcoin as payment.
If you assume BTC value is going to be sustained based on its ability to act as medium for frequent exchange and transactions, you should cash in your BTC now. BTC can't even sustain 1/1000th the transaction rate that VISA runs. BTC may have long term value as "crypto gold". Else it is eventually doomed as a great initial foray into crytpo world, that is technically surpassed many times over in 3rd and 4th generation of evolution
Good point, I wonder if the creators of bit coin ever thought the value would be so high. If it is capped at 21 billion it could never handle the trillions of dollar 💵 transactions that happen every year.
Value just the community agreement, when they agree it worth, it worth
Likes money, everybody agree money have value because it backed by government and we must agree with government policy,
The value of bitcoin didn't decrease after split on two because it marketcap still same as before hardfork, it means that bitcoin cash developer stay invest his money on bitcoin, and marketcap still high as result, the price didn't fall even up
Miners spend money on over priced pc hardware, and then continuosly spend money on over priced power to run that hardware, so this is one way value is created from real world reasources.