Bitcoin and Why it Matters
Bitcoin happened to be all the craze about a year ago when people saw the price skyrocket to above $19,000. Now that the price has corrected to just under $4,000, a lot of people who are uneducated about bitcoin have lost interest in this technological giant because they don’t truly understand everything that bitcoin is and represents.
I’ve had the privilege of working with a friend that became very rich with bitcoin, as well as traveled the world to educate the masses, not just about bitcoin, but also about other cryptocurrencies that were emerging at the time.
What Is Bitcoin, Really?
Bitcoin is a digital currency, which works very much the same way as when you pay with a debit or credit card; you don’t send money online, you send a transaction code over the internet that has a specific value tied to it.
Bitcoin also cannot be controlled or regulated; unlike the Federal Reserves. The Federal Reserves has been inflating the USD, and has caused the dollar to lose over 96% of it’s value since 1913.
When you have a country printing off billions and billions of dollars every day but there’s no real value behind it, it makes the paper that it’s printed on worth more than the actual money itself (remember, when you own something controlled by the government you have to play by their rules).
With bitcoin there is a finite amount of bitcoin that can be mined (where they use super computers to solve complex mathematical algorithms to search the deep web to find the bitcoin). There will only be 21 million bitcoin in circulation by the year 2021.
Bitcoin Moving Forward
I’ve come to find out through extensive research that bitcoin has deflation encoded into it’s programming, meaning, bitcoin will increase in value more and more as the years go on (past history has shown that bitcoin has already increased over 1,000% in value three different times); right now the price action of bitcoin is in the middle of a correction, which is typical market movement.
other valuable tips:
If you’re familiar with supply over demand, you know that the harder something is to acquire (the less of it there is) the more valuable it becomes. Every four years they make the reward for mining bitcoin get cut in half.
For example; this year only 12.5 bitcoin is rewarded to miners for their efforts of mining the bitcoin. Next year in May 2020, bitcoin miners will only receive 6.25 bitcoin for their mining efforts (history has also shown that bitcoin starts a huge bull run exactly one year prior to the halving).
What bitcoin has done from the start is absolutely unprecedented. I’ve studied price action before and trends always continue from what they’ve done at the very beginning. If you don’t completely understand bitcoin and what it represents, then there’s a good chance that you might lose out on the next astronomical bitcoin bull run, which expert analysts are saying is making the move to be the biggest bull run the history of the world has ever known.
Image Credit: Pixabay
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