Cryptocurrency exchange -Bitcoin Value and how to buy bitcoin
Bitcoin value since early 2009 was sitting at $0.01 and touched $20.000 in December 2017. Followed by several corrections during 2018, bitcoin values fluctuate in the crypto markets. For a better understanding why that happening we need to understand who and what is driving bitcoin. First and foremost, let’s take the time to compare money and bitcoin to understand the similarities. Currencies are traded in foreign exchange markets, while bitcoin and other coins are traded in cryptocurrency markets.
The difference between money and digital money
Money is imaginary, now I don’t mean that one printed piece of paper has made us believe so. We can feel its texture and the ink, but when you compare it to a blank piece of paper what’s really the difference? One is a recognized currency while the other isn’t and the reason is simple, was printed by banks.
We all pretend it’s a currency, this is one reason why the digital currency bitcoin appeals to some people. It’s not tied to any political system our government so it’s not vulnerable to any of their feelings like the economic collapse in 2008. All bitcoin needs it’s for people to believe in it but likely well some people are having a crisis of faith. Let’s quickly establish some facts about bitcoin with vital information you most probably skipped.
Basically it’s virtual money you can use to buy and sell things online.
Bitcoin mimics real world limited resources like uranium for instance. Uranium can be considered a cryptocurrency meaning that it is encrypted in a way that prevents it from being copied. Every bitcoin transaction is recorded using a blockchain.
That information acts like a ledger encoded in to the Bitcoin itself and prevents people from spending the same bitcoin more than once. Since everyone else can follow the cryptocurrency on blockchain. Essentially just a number associated with an internet address you can store it on your phone or a hard drive until it’s used again. Ways of buying bitcoins is to accept them as payment for goods and services. Exchange them for a more traditional form of currency. Or you can mine them that’s right like uranium, bitcoins are mined by powerful computers. Like uranium the more people mine bitcoins the less there are to be found. They become harder to find instead of physically mining with a pickax.
Bitcoin mining – Efficiency and security
Attempting to solve math problems with the computer, imagine the problem is something like x + y = 15, figuring out what X and Y are you get a bitcoin. With little competition the problems are easier to solve but when more people join the search you’ve got to race and the problems get way more difficult. However with time, bitcoin miners will solve the math problems that eventually gets easier since bitcoin was designed to be inflation proof.
Bitcoin existence will end?
Governments will like that very much. With that mind expectation of bitcoin’s existence will stop around 2140. Assuming you heard all of this and decided to grow up to be a professional bitcoin miner and trader. There are few risks you should probably know about it first. For instance, because there’s no regulatory agency setting bitcoin value it tends to fluctuate wildly. Another problem is security (not actually the form itself) that doesn’t protect from hackers. They target the banks and exchanges that deal in bitcoins. It is not the currencies fault, if a bank is robbed. You wouldn’t blame the dollar bill for getting stolen, right?!
Bitcoin Value – Volatility Comparison
Back to bitcoin value and cryptocurrency exchange, bitcoin surprised many leading banks and market makers. Trading on volatility is a well-known practice for the past 20 years and cryptocurrency markets are no different. Researching stocks and indices we witnessed growth every year. NASDAQ 100, the second biggest index on the planet with 100 companies under, it had ups and downs every year.
Record highs every year for individual technology company and huge for the index overall, expected to go even higher by end of this year.
In 2017 bitcoin value topped $20k and started its run since early September when the lowest was close to $5k. This year we experienced lows close to $6,5k with signs that bitcoin might go up to $35k since we are close to quarter 4 and many other coins will release the technology.
Blockchain technology at its best!
Tackling the cryptocurrency exchanges similarities with banks are surprisingly the same. More and more banks are adopting the same blockchain technology for instant transaction. Facebook, Google and even governments realized the endless possibilities using this technology.
The same analysts speculating on bitcoin value and calling cryptocurrency market a bubble, are the exact same ones responsible for the economic collapse in 2008. Assuming that they know how to analyze crypto markets, on many occasions it looked more of a hit and miss.
Analysts failed to understand one major aspect in the cryptocurrency market, bitcoin and altcoins are mineable. From early September debates and misleading information regarding bitcoin mining has flooded the internet.
Cryptocurrency exchange – Misleaded by mainstream media?
Many articles were published against mineable coins, leading to big headlines such as, “Gamers Suffering Because of Digital Mining” and “Power Supply Networks Overcharging Because of too Many Mining Computers”. People! It is time to wake up from this mainstream media manipulation, things are not actually that bad. First of all, I will explain why the first statement is not accurate, because no matter how many miners are on the blockchain the outcome is the same.
In fact, it is better to have less miners not because of the electricity consumption but because there will be much more bitcoins for the remaining ones.
Back to Basics!
Simple mathematics, in cryptocurrency exchange everyone should have, for example one million miners will split the amount of bitcoins mined every hour, 75 BTC to be exact. Based on the example, if you have less miners it’s better for them, as profits can increase. The reason of mining rigs going offline is because of the average miner that invested $10k in GPU’s when the price of bitcoin was at its high. Why haven’t they made back the investment? Mining or buying bitcoin when the prices are high is a major mistake.
Mining in General
Using mathematics, let’s take the example of “1+1= 2 now 8 out of 10 miners” will execute the operation faster. Next operation “(1+1) +1=2+1=3 only 6 out of 10 miners” executed faster. The algorithms have to be executed. The two miners from the first example will need double the time to execute.
Articles stating that miners need to start over giving examples such as, “Let’s understand why from a different perspective, you go to school and take a test and fail to answer the questions correctly. By retaking the test, you will not encounter the question you failed to answer, starting from scratch.” THIS IS MISLEADING INFORMATION!
Allow me to elaborate: “You build a house and you finish the bricks. Will you demolish and restart from scratch? Of course not, you will continue from where you left of once you have a fresh supply of bricks.” MAKES SENSE?
Power consumption doesn’t need a debate really. Hypothetically speaking, if average consumption increased by 30% it means that energy providers are making more money.
Bitcoin Value – Can it lead to economy growth?
Since governments get bigger taxes, why are they trashing bitcoin value? Is it because they are not controlling it by inventing stories that very easily fund terrorism? Reading this will probably open your eyes and make you realize that’s the first reason they will regulate cryptocurrency market. They want power for themselves that they don’t have, however, they allowed average persons to buy bitcoin.
Why cryptocurrency exchange is better from other exchanges?
Is not about being better but have the freedom to keep your coins and use them in day to day purchases without a third party. Defining better from comfortable and rewarding most of us will like both. Blockchain itself is designed to reward users for uploading content of any nature.
This concludes my short review regarding crypto markets and bitcoin value. As all crypto enthusiast say, “TO THE MOON”!