ABSTRACT
Cryptocurrency is taking the world over like anything, recently it crossed the valuation landmark of $1 Trillion and counting. Of course, Bitcoin is a major part of the valuation, sitting north of $600 Billion followed by Ethereum at around $200 Billion. To be fair we all know there is no stopping to these exchanges and there is no limit to where they can reach.
These cryptos were made simply to decentralize the power of money which rets with the central bank of the country. It was made for the people, to have monetary power in the hands of the smaller guy. Some famous industrialists and visionaries think cryptos are the future and will replace traditional money one day.
At the time of writing this article, almost 18.6 million Bitcoin have been mined out of the 21 million in existence. This scarcity gives value to the currency.
As a rule of thumb, the way the network is set up every 4 years per batch of transactions confirmed per mining puzzle solved gets cut in half and as a result, the 21st million will be mined in the year 2140.
The Infamous Founder: Satoshi Nakamoto
No one in the world knows who Satoshi Nakamoto is, or where he is from? Nobody knows why he created Bitcoin and the only thing people know him of is that he is the founder of a revolutionary technology that will take over governments. Many people have faked as they tried to come out as Satoshi Nakamoto but they failed miserably.
There will be a limited supply of bitcoin with 21 million coins, at the time of writing this article about 18.7 million bitcoins have already been mined. Have you ever wondered why the uncommon 21 million mark was chosen and not 20 million, it is because 1 million coins rest with the founder Satoshi Nakamoto and the remaining is for the other investors to mine.
Him coming out from his “presumably” non-existence would mean a great deal to the world. Today, he is in a position to alter a country's economic system completely and can do wonders for the world.
Guessing by his name, he appears to be an introverted tech nerd living in the east of Asia, who was sick of the government and his financial situation for a long time and in the hang of it, someday created Bitcoin.
There can be 2 scenarios of him not coming out:-
1. In the early days of Bitcoin he was quite active and frequently made transactions in Bitcoin but as it became popular he might be scared and didn’t want to reveal his identity for obvious security reasons.
2. As a founder he must have booked a humungous profit till yet, and coming out now would mean a catastrophe as he would be in the eyes of the public a lot, and considering the fact that he might be an introvert (which led to him being anonymous in the first place) would not be ideal for him.
IS IT TOO LATE?
To be frank YES! It is too late to get into the cryptocurrency world simply because the prices have gone too far beyond anyone’s wildest expectation. Even if bitcoin were to pass $100,000, it would mean just an increase of more than 100% which is relatively low as compared to the unimaginable profits that people are booking right now.
As matter of fact, the 100% is not at all bad but if you try to look from the perspective of the compounding effect, it is nothing. The power of compounding is called the 8th wonder of the world.
“If the value of the dollar goes down government prints it, then what are we saving it for?” by Robert Kiyosaki.
Other cryptocurrencies are a relatively good option right now as their prices are somewhat undervalued and they will surely rise in the near future. Elon Musk himself is promoting dogecoin on Twitter which people seem to have been buying as the prices are rising rapidly.
5 Most Promising Cryptocurrencies:-
1. Ethereum
2. Litecoin
3. Polkadot
4. Binance Coin
5. Dogecoin
IS IT A BUBBLE?
The answer to this question is YES and NO both as being a bubble depends on a number of facts and figures along with some major factors and situations. To some extent it is as there is no regulation by the government (it doesn’t have any kind of stop-loss whatsoever as these are privately made entities), there is a possibility that the prices might go to zero before you wake up.
Mind you, cryptocurrency is totally legal in every aspect.
Many companies and big investors seem interested in this area as Apple themselves are looking to buy bitcoin in the near future, rumors are that Elon Musk himself bought $5 billion worth of bitcoin but on the other hand many billionaires like Mark Cuban believe this is a bubble and save themselves from investing any money in cryptos.
If we say bitcoin is a bubble we might compare it to the dot com bubble which happened at the start of the 21st century but somehow this seems a bit different to that.
WHY BITCOIN CAN’T BE HACKED?
Technologies like cryptos are at their core is purely software. It runs on a network of interlinked but independent computers. This control of this system rests with every computer in the chain. The information is copied on every computer that is part of the network. Every time someone makes a transaction, a unique signature is made for verification. It simply prevents counterfeiting by broadcasting the information on a large scale, which ultimately makes Bitcoin an unhackable entity.
