Bitcoin peaked at about a month ago, on December 17, at around $ 20,000. As I write, cryptocurrency is under $ 11,000 … a loss of about 45%. That’s more than that $ 150 billion in a lost market.
Learn more about wrinkles and toothpicks in a crypto-commentariat. It’s neck-and-neck, but I think “I told you-so-so” the crowd is limited to “excuses.”
Here’s the thing: Unless you lose your shirt on bitcoin, this doesn’t matter. And fortunately, the “experts” you see in the newspapers do not tell you why.
In fact, the collapse of bitcoin is shocking … because it means we can all just stop thinking about cryptocurrencies together.
Bitcoin Death …
In a year or so, people are no longer talking about bitcoin online at a grocery store or on the bus, as it is now. That is why.
Bitcoin is due to legitimate frustration. Its maker made it clear that cryptocurrency is a government that misappropriates fiat currencies such as the dollar or the euro. They had to offer a way to pay for their own independence, to take their peers to the money that could not be reduced, since it was a small amount.
Those dreams have always been used for fantasy. Surprisingly, most people care about bitcoin because it seems like an easy way to earn more fiat money! They are not the owners because they want to buy pizza or gas with them.
Aside from being a bad way to switch electronically – slowly, – the success of bitcoin as a simulation game has made it as useless as money. Why would anyone ruin it if they appreciated it so quickly? Who can get one if it gets too low?
Bitcoin is also a major source of pollution. It takes 351 hours for an electric motor to perform one function – which also releases 172 kilograms of carbon dioxide into the atmosphere. It is enough to rule one US family for a year. The energy used by all bitcoin mines to date can power up to about 4 million US families per year.
Surprisingly, the success of bitcoin seems old-fashioned fictional play – not his free will – has provoked a civil unrest.
China, South Korea, Germany, Switzerland and France have imposed, or are considering, restrictions or restrictions on bitcoin trading. Several government agencies have called for action to address the problem. The US Securities and Exchange Commission, which initially seemed to approve bitcoin currency exchanges, now appears skeptical.
And according to Investing.com: “The European Union is enforcing stricter laws to prevent money laundering and terrorism on the virtual currency. It is also looking at the limits on cryptocurrency trading.”
We can see a functional cryptocurrency, very legitimate one day, but it will not be bitcoin.
… But the Expansion of Crypto Assets
Good. Going beyond bitcoin allows us to see where the real value of crypto assets is. This is how it is.
To use the New York subway system, you need tokens. You can’t use them to buy anything … even you he can sell it to someone who wants to use the subway system more than you.
Instead, if the ground tokens were too small, their exciting market could come. They can also sell for more money than they did before. It all depends on the size of the population to want using the metro.
This, in short, is the case for the most reliable “cryptocurrencies” apart from bitcoin. That’s not money, they are symptoms – “crypto-tokens,” if you wish. They are not used as ordinary money. It’s the only good thing inside the platform that it was made for.
If the platforms offer value-added services, people will need crypto-tokens, and this will determine their value. In other words, crypto-tokens will be valuable until people appreciate the things you can get from their affiliate platform.
That’ll make them real goods, and internal tree – because they can be used to find something that people love. This means that you can safely expect a stream of money or services by having crypto-tokens. In short, you can measure that stream of future returns against the crypto-token value, just as we do when calculating the value / value (P / E) of a commodity.
Bitcoin, by contrast, has no real value. It has a value only – the value established by the availability and necessity. It will not generate future cash flows, and you cannot measure anything as its P / E value.
One day it will be useless because it does not get you anything real.
Ether and Other Crypto Tools and Future
The crypto-token ether sure it seems as money. It is traded on the cryptocurrency market under code ETH. Its symbol is the large Greek alphabet Xi. It is mined in a similar way (but less powerful) to bitcoin.
But ether is not money. Its developers describe it as “a fuel-efficient platform for Ethereum. It is a payment made by platform customers for machines that run the applications they request.”
Ether signals give you access to one of the world’s highest-quality networks. It is a great promise that big companies are falling all over the world to create real-world applications.
Because most people who sell it do not understand or care about its real purpose, the ether price has exploded like bitcoin in recent weeks.
But eventually, ether will return to a fixed price depending on the need for counting services that can “buy” people. That tree will represent real price which can be purchased later. There will be a future market, and stock exchanges (ETFs), because everyone will have a way to see their value over time. Just as we do with stocks.
What will the price be? I do not know. But I know it will be more than just bitcoin.
My advice: Remove your bitcoin, and buy ether on the next dip.