Since it is currently en vogue right now, I’d like to announce I am launching my very own cryptocurrency next week.
Let us call it “kingcoin.”
Nah, that’s too self-serving.
How about “muttcoin”? I have always had a soft spot for mixed breeds.
Yeah, that is perfect – dogs are loved by everybody.
This is going to be the biggest thing since fidget spinners.
Congrats! Everyone reading this is planning to get one muttcoin when my new coin launches next week.
I am going to evenly distribute 1 million muttcoins. Feel free to spend them anywhere you like (or wherever anyone will accept them!).
What’s that? The cashier at Target said they would not accept our muttcoin?
Tell those doubters that muttcoin has scarcity value – there’ll only ever be one million muttcoins in existence. On top of that, it is backed by the full credit and faith of my desktop computer’s eight GB of RAM.
Also, remind them that a decade ago, a bitcoin couldn’t even buy you a pack of chewing gum. Now one bitcoin is able to buy a lifetime supply.
Plus, like bitcoin, you can store muttcoin safely offline off thieves and hackers.
It’s essentially an exact replica of bitcoin’s properties. Muttcoin has a decentralized ledger with impossible-to-crack cryptography, and all transactions are immutable.
Still not convinced our muttcoins are going to be worth billions in the future?
Well, it is understandable. The fact is, introducing a brand new cryptocurrency is a lot tougher than it appears, if not downright impossible.
That is the reason I believe bitcoin has reached these heights against all odds. And because of its unique user network, it will continue to do it.
Without a doubt, there have been setbacks. But each of these setbacks has ultimately resulted in higher prices. The latest sixty % plunge will be no different.
The Miracle of Bitcoin
Bitcoin’s success rests in its potential to create a worldwide community of users that are either prepared to transact with it right now or even put it for future use. Future prices will be dependent on the pace that the community grows.
Even in the face of wild price swings, bitcoin adoption continues to grow at an exponential rate. There are actually twenty three million wallets open globally, chasing twenty one million bitcoins. In a few years, the number of wallets are able to rise to include the 5 billion people on the planet connected to the web.
Sometimes the new crypto converts’ motivation was speculative; other times they were looking for a store of value away from their very own domestic currency. In the last year, new applications including Coinbase have made it even easier to onboard new users.
When you haven’t noticed, when individuals buy bitcoin, they talk about it. We have that friend who bought bitcoin and then would not shut up about it. Yes, I’m accountable for this – and I am certain quite several readers are too.
Perhaps subconsciously, holders become crypto-evangelists since convincing others to buy serves their own self-interest of increasing the value of the holdings of theirs.
Bitcoin evangelizing – spreading the good word – is what miraculously led to a price ascent from $0.001 to a recent price of $10,000.
Who could have imagined that its pseudonymous creator, fed up with the global banking oligopoly, launched an intangible digital resource that rivaled the value of the world’s largest currencies in less than a decade?
No religion, political movement or even technology has ever witnessed these growth rates. Nonetheless, humanity has never ever been as connected.
The Idea of Money
Bitcoin started as an idea. To be bitcoin to naira , all money – whether it’s shell money used by primitive islanders, a bar of gold or a U.S. dollar – started as an idea. It’s the idea that a network of users value it equally and would be willing to part with something of equal value for the form of yours of money.
Money has no intrinsic value; its value is purely extrinsic – only what others think it is worth.
Have a look at the dollar in your wallet – it’s really a fancy piece of paper with an one eyed pyramid, a stipple portrait and signatures of people that are important.
To be able to be handy, society must view it as a unit of account, and merchants must be willing to accept it as payment for services and goods.
Bitcoin has demonstrated an uncanny ability to reach and connect a network of millions of users.
One bitcoin is worth what another person is willing pay for it. But if the network continues to expand at an exponential rate, the limited supply argues that prices are only able to move in one direction… higher.
The Bottom Line
Bitcoin’s nine year ascent has been marked with huge bouts of volatility. Therewas an 85 % correction in January 2015, and a few others more than 60 %, including a colossal ninety three % drawdown in 2011.
Through each one of these corrections, however, the network (as measured by number of wallets) continued to expand at a rapid rate. As some speculators saw their value decimated, new investors on the margin saw value and became buyers.
The abnormal levels of volatility are actually what helped the bitcoin network grow to 23 million users.
Hey, maybe we just need a bit of price volatility in muttcoin to attract new users…