Since it’s all the rage right now, I’d like to announce that I’ll be launching my own cryptocurrency next week.
Let’s call it “kingcoin”.
No, that’s too self-serving.
How about muttcoin? I’ve always had a soft spot for mixed breeds.
Yes, that’s perfect, everyone loves dogs.
This is going to be the biggest thing since fidget spinners.
Congratulations Everyone reading this will get one darkcoin when my new coin launches next week!
I’m going to distribute 1 million darkcoins evenly. Feel free to spend them wherever you want (or wherever someone will accept them).
What is it? The cashier at Target said they wouldn’t accept our mutcoin.
Tell the doubters that darkcoin has little value. only 1 million darkcoins will exist. Plus, it’s backed up by the full faith and credit of my desktop computer’s 8GB of RAM.
Also, remind them that a decade ago Bitcoin couldn’t even buy you a piece of gum. Now one bitcoin can buy a lifetime.
And, like Bitcoin, you can keep Mutcoin safe from hackers and thieves.
It is basically an exact replica of Bitcoin’s properties. Muttcoin has a decentralized ledger that is impossible to crack with cryptography and all transactions are immutable.
Still not convinced that our darkcoins are worth billions in the future?
Well, that’s understandable. The fact is that launching a new cryptocurrency is much more difficult than it seems, if not downright impossible.
This is why I believe Bitcoin has reached these heights against all odds. And because of its unique user network, it will continue to do so.
Of course, there have been setbacks. But each of these setbacks eventually led to higher prices. The recent 60% drop will be no different.
The Bitcoin Miracle
Bitcoin’s success is based on its ability to create a global network of users who are either willing to transact with it now or hold it for later. Future prices will be determined by the growth rate of the network.
Even with wild price fluctuations, Bitcoin adoption continues to grow at an exponential rate. There are now 23 million wallets open worldwide chasing 21 million bitcoins. Within a few years, the number of wallets could grow to include 5 billion people on the planet connected to the Internet.
Sometimes the motivation of crypto converts was speculative; At other times, they looked for a store of value away from their own currency. In the last year, new apps like Coinbase have made it even easier for new users to get on board.
If you haven’t noticed, when people buy bitcoin, they talk about it. We all have that friend who bought Bitcoin and then didn’t shut up about it. Yes, I’m guilty of this, and I’m sure many readers are too.
Perhaps subconsciously, owners become covert evangelists because persuading others to buy serves their own interests to increase the value of their property.
Bitcoin evangelism, the spreading of the good word, is what miraculously led the price to rise from $0.001 to a recent price of $10,000.
Who would have imagined that its pseudonymous creator, fueled by a global banking oligopoly, would launch an intangible digital asset that rivaled the value of the world’s largest currencies within a decade?
No religion, political movement, or technology has ever witnessed this rate of growth. Then again, humanity has never been so connected.
The idea of money
Bitcoin started as an idea. To be clear, all money, be it shell money used by primitive islanders, gold bullion, or the US dollar, began as an idea. It’s the idea that a network of users value it equally and will be willing to part with something of equal value for your money.
Money has no intrinsic value. its value is purely external, only what others think it is worth.
Look at the dollar in your pocket. it’s just a fancy piece of paper with a one-eyed pyramid, a stapled portrait, and signatures of important people.
To be useful, society must treat it as a unit of account, and merchants must be willing to accept it as payment for goods and services.
Bitcoin has demonstrated an amazing ability to reach and connect millions of users to a network.
One bitcoin is only worth what the next person is willing to pay for it. But if the grid continues to expand at an exponential rate, limited supply argues that prices can only move in one direction… higher.
Bitcoin’s nine-year rise has been marked by massive bouts of volatility. There was an 85% correction in January 2015 and several more than 60%, including a massive 93% drop in 2011.
Through each of these corrections, however, the network (as measured by the number of wallets) continued to expand at a rapid pace. As some speculators saw their value eroded, new investors saw margin and became buyers.
Abnormal levels of volatility are actually what helped the Bitcoin network grow to 23 million users.
Hey, maybe we just need some mutcoin price volatility to attract new users…