Bitcoin peaked at about 20,000 20,000, about a month ago, on December 17th. As I write, the cryptocurrency is below ,000 11,000 … about 45% loss. More than that $ 150 billion Lost market cap.
In crypto-commentators, many are seen rubbing their hands and teeth. It’s neck-to-neck, but I think the “excuse-makers” have the edge of the “I-told you” crowd.
Here’s the thing: If you haven’t just lost your shirt to Bitcoin, these aren’t important at all. And chances are the “experts” aren’t telling you what you’re seeing in the press.
In fact, the Bitcoin crash is great … because it means we can all stop thinking about cryptocurrency completely.
Death of Bitcoin …
After a year or so people will not talk about bitcoin in grocery stores or on the bus line, like now. The reason is here.
Bitcoin is a crop of frustration. Its designer explicitly stated that cryptocurrency is a response to the official misuse of Fiat currency, such as the double or the euro. It was supposed to provide a unique, peer-to-peer payment system based on virtual currencies that could not be reduced, as they had a limited number.
That dream has long been jettisoned in favor of raw speculation. Ironically, most people care about Bitcoin because it seems like an easy way to get more Fiat currency! They don’t own it because they want to buy pizza or gas with it.
In addition to being a terrific way to transact electronically – it’s painfully slow – the success of Bitcoin as a speculative drama has made it useless as a currency. If someone appreciates it so quickly, why spend it? Who will accept when it is rapidly declining?
Bitcoin is also a major source of pollution. It only takes 351 kilowatt-hours of electricity to process a transaction – it also releases 172 kilograms of carbon dioxide into the atmosphere. That’s enough to give one American family energy for a year. The energy used by all bitcoin miners to date could power about 4 million U.S. households a year.
Oddly enough, the success of Bitcoin as an old fashioned one Guessing game – Not even liberal uses imagined – Attracted by government crackdown.
China, South Korea, Germany, Switzerland and France have implemented or are considering banning or restricting bitcoin trading. Several intergovernmental organizations have called for concerted action to link the obvious bubbles. The US Securities and Exchange Commission, which once seemed to approve bitcoin-based financial derivatives, is now in a quandary.
And according to Investing.com: “The European Union is implementing stricter rules to prevent money laundering and terrorist financing on virtual currency platforms. It is also exploring the limits of cryptocurrency trading.”
We may one day see a functional, widely accepted cryptocurrency but it will not be Bitcoin.
… but a boost for crypto resources
Good. Getting Bitcoin lets us see where the real value of crypto assets is. Here’s how.
You need tokens to use the New York subway system. You can’t use these to buy anything else … even if you Can Sell these to someone who wanted to use the subway more than you do.
In fact, if the subway tokens were in limited supply, there could be a lively market for them. They can even trade at a much higher price than they actually cost. It depends on how many people I want To use the subway.
In short, this is the scenario of the most promising “cryptocurrency” other than Bitcoin. They are not money, they are Token – “Crypto-Tokens,” if you wish. These are not used as ordinary currency. It’s only good for the platform they were designed for.
If these platforms provide valuable services, people will want those crypto-tokens and it will determine their value. In other words, crypto-tokens will be worth the amount that people pay for the things you can get for them from their respective platforms.
It will make them Real resources, With The underlying value – Because they can be used to achieve something that people value. This means you can reliably expect a stream of earnings or services from owning such national crypto-tokens. Critically, you can measure that stream of future returns against the value of the crypto-token, just as we do when we calculate the stock’s price / earnings ratio (P / E).
In contrast, Bitcoin has no underlying value. It has a price – the price determined by supply and demand. It cannot produce future earnings streams and you cannot measure anything like P / E ratio for it.
One day it will be worthless because it doesn’t give you anything real.
Ether and other crypto resources are the future
Crypto-token ether is guaranteed It seems Like currency it is traded on cryptocurrency exchanges under ETH code. Its symbol is the Greek eleventh letter. It has been mined in a similar (but less energy-intensive) process to Bitcoin.
But ether is not a coin. Its designers describe it as “the fuel for handling the distributed application platform Ethereum. It is a kind of money given to machines that perform the activities requested by the platform’s clients.”
Ether tokens allow you access to one of the world’s most sophisticated distributor computing networks. It is so committed that large companies fall on top of each other and develop for practical and real-world use.
Since most people who trade it do not understand or care about the true purpose, the price of ether has bubbled up like Bitcoin in recent weeks and has become fruitful.
In the end, however, Ether will return to stable prices based on the demand for computing services that it can “purchase” for the people. That will present the price Real value It may be valuable in the future. There will be a futures market for this and there will be exchange-traded funds (ETFs), because everyone will have a way to determine its underlying value over time. We do that with stocks.
What will be that value? I have no idea. But I know it will be much more than bitcoin.
My advice: get rid of your bitcoin and buy ether at the next dip.