Since it’s currently in vogue, I’d like to announce that I’m launching my own cryptocurrency next week.
Let’s call it “kingcoin”.
No, that’s too self-effacing.
How about “muttcoin”? I always had a mild place for mixed breeds.
Yes, that’s perfect – everyone loves dogs.
This will be the biggest thing about fidgeting.
Congratulations! Anyone who reads this will get one muttcoin when my new coin rolls out next week.
I will share a million muttcoins evenly. Feel free to spend them wherever you want (or wherever someone accepts them!).
What is that? The cashier at Target said she wouldn’t accept our muttcoins?
Tell those who suspect that muttcoin has a scarcity value – there will only be a million muttcoins. On top of that, it is backed by the full faith and merit of 8GB of RAM on my desktop computer.
Also, remind them that ten years ago bitcoin couldn’t even buy you a pack of chewing gum. Now one bitcoin can buy a lifetime supply.
And like bitcoin, you can store muttcoin securely offline, away from hackers and thieves.
It is basically an exact replica of the properties of bitcoin. Muttcoin has a decentralized book with cryptography that is impossible to break, and all transactions are immutable.
Still not convinced that our muttcoins will be worth billions in the future?
Well, that’s understandable. The fact is that launching a new cryptocurrency is much harder than it seems, if not completely impossible.
So I believe bitcoin has reached those heights no matter what the odds. And because of its unique user network, it will continue to do so.
Certainly, there was a failure. But each of these failures ultimately resulted in higher prices. Not even the recent 60% drop will be any different.
A miracle of Bitcoin
Bitcoin’s success lies in its ability to create a global network of users who are either willing to make transactions with it now or store them for later. Future prices will be determined by the growth rate of the network.
Even faced with wild price changes, bitcoin adoption continues to grow at an exponential rate. Now, 23 million wallets have been opened worldwide, haunting 21 million bitcoins. In a few years, the number of wallets could increase to include 5 billion people on the planet connected to the Internet.
Sometimes the motivation of new crypto converters was speculative; the second time they sought a storehouse of value away from their own domestic currency. In the last year, new applications like Coinbase have made it even easier for new users to enter.
In case you haven’t noticed, when people buy bitcoin, they talk about it. We all have that friend who bought bitcoin and then he wouldn’t keep quiet about it. Yes, I’m to blame for this – and I’m sure there are quite a few readers as well.
Perhaps subconsciously, owners become crypto-evangelists because convincing others to buy serves their own interest in increasing the value of their possessions.
Evangelizing bitcoin – spreading the good word – is what has miraculously led to a price increase of $ 0.001 to a recent price of $ 10,000.
Who could have imagined that his pseudonym, saturated with a global banking oligopoly, launched an intangible digital resource that competed with the values of the world’s largest currencies in less than a decade?
No religion, political movement or technology has ever witnessed these growth rates. So again, humanity has never been so connected.
The idea of money
Bitcoin started as an idea. To be clear, all the money – be it shellfish money used by primitive islanders, a piece of gold or the US dollar – started as an idea. The idea is that the network users are equally valued and would be willing to share with something of equal value for your form of 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 fancy paper with a one-eyed pyramid, a mottled portrait and the signatures of important people.
To be useful, society must view it as a unit of account, and merchants must be willing to accept it as a payment for goods and services.
Bitcoin has shown an unusual ability to reach and connect to a network of millions of users.
One bitcoin is only worth as much as the next person is willing to pay for it. But if the network continues to expand exponentially, the limited supply claims that prices can only move in one direction … more.
The nine-year rise of Bitcoin has been marked by huge bursts of instability. In January 2015, there was a correction of 85% and a few others over 60%, including a colossal reduction of 93% in 2011.
Through each of these corrections, the network (measured by the number of wallets) continued to grow rapidly. As some speculators saw their value decimated, so new margin investors saw value and became buyers.
Abnormal levels of volatility are actually what helped the bitcoin network grow to 23 million users.
Hey, maybe we just need price volatility in muttcoin to attract new users …