The world has gone mad. I have no other explanation for what is happening around bitcoin.
The cryptocurrency, which appeared just over 10 years ago, is going up rapidly. Watch this first, everyone was funny, but then it became interesting and exciting.
In the end, the world was divided into two parts. One of the people managed profitable and cheaper to buy coins, and the other part of people hesitated for a long time, and then bitterly regretted looking at the success of others.
In the struggle between fear and greed won the second. When bitcoin grows, for example, 20 - 25% every day is no longer important nuances.
Nobody confuses that instead of real money you get some kind of code. Nobody cares that hackers have already come up with a hundred ways to get rich on this. They hacked cryptocurrency exchanges and virtual wallets emptied for millions of dollars.
We still have no guarantees, no control over this. We have only a wild desire to become richer without putting much effort.
We moved their dollars, euros, rubles and yuan to obtain some portion of bitcoins. We hope to obtain the income as soon as possible. Because the deposited amount can grow to millions or even higher.
But let's see together what's the main danger of this fever is virtual money?
Buying bitcoin is a zero - sum game. The amount of money in the system is equal to the sum of the contributions of all its members.
Imagine that this is not program code, and the usual chips in the casino.
All participants change money on pieces of plastic. And cunning stickman says: "The Number of chips is limited. A chance to win will be only those who will be able to buy them."
After that, the chips began to rise sharply in price.
The math here is very simple. Look, there are only 100 bitcoins. When the system contains $ 100, 1 BTC will be worth 1 dollar. BUT. When the system invested thousands of dollars, then bitcoin grows proportionally to this value.
Growth will go up until the number of bitcoins will grow slower than the amount of money flowing into the system.
As soon as someone commits a profit (selling bitcoins is more expensive than he bought them), someone in the future will necessarily be damages. And let's not forget about the Commission of exchangers is 3-5% for each transaction.
Bitcoin differs from the shares of promising companies, which can also go up. For example, investors put their money in the hope of a profit in the well-known conventional Facebook or Apple.
The company will make more money by selling real products to the public. The more sales,the more the company will give the profit to the shareholders in form of dividends.
But how to be a bitcoin? Bitcoin is just a payment tool like any other currency. He can't generate revenue.
Why everyone rushed to buy it?
I believe that this is true for several obvious reasons.
- Designed legend with a heap of marketing nuances attracted a large number of investors. And who is this mysterious Japanese, which conventionally have never been seen?
- Have your bitcoins is mining process - mining. It's like gold. People buy video cards that run a special program. She makes some calculations. At the end materializes new code which is the next coin. Here everything seems to depend on yourself. How many "find", so much coins you get.
- Limited edition. The program is set up so that the last bitcoin will be produced in 2021. The situation is heating up, and the amount of mined bitcoins is constantly decreasing. The race begins.
- The confrontation over the Central banks of the world. This is a new freedom, and the bitcoin is the currency of all free citizens of the world.
The worst thing is that the number of participants is limited to the population of our world. I won't be surprised if bitcoin will soon give a million dollars.
This is a computer game for real money and the world's first global pyramid (or bubble - call it what you want). Before that, they appeared only in certain countries. Everyone is playing this game as long as it promises profits.
Alternatively, this can be compared with another original pyramid scheme: first, all the investors went crazy with new prospects, but after a while they went crazy with the frenzied growth of quotations. But the result is always the same - the bubble bursts with a Bang.
Thanks for the additional source of information and sorry for the long pause in the answers)
Thank you)
I appreciate your analysis on the Bitcoin. While true that there currently exists tons of excitement, there's also the stark downside that ruins lives. So many people are rushing to blindly join without understanding the tools involved in managing the risk one enters when buying bitcoin. This is just another cycle in the never ending cycle of accumulation and distribution. Like any other resource like clean water or electricity, it must be properly managed- we must be responsible and be good stewards of our resource we directly control. Again, thank you for your well thought out post!
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Thank you very much for your participation in this topic and comment!)
I agree with you. Now it has become a desktop phenomenon that many people come to the world of bitcoin, absolutely not understanding the mechanism of work. Naturally, this only complicates the overall picture with cryptocurrency.
I hope that in the end there will be much fewer disappointed people than the forecast foretells.
Sorry for the long pause with the answers, I had a lot of work)