Posted By: Admin
On: August 14th 2017
Category: Entrepreneurship, Bitcoin, Finance
IS BITCOIN A FAD, A FRAUD, A PONZI SCHEME, OR A BUBBLE?
Understanding digital currency or crypto currency is quite difficult and explaining it is even more difficult. Fore most people the basic explanation that “BITCOIN IS A DIGITAL CURRENCY, BASED ON ”PROOF OF WORK“ TECHNOLOGY (BLOCKCHAIN) WHEREBY EACH DATA STORED IN A BLOCKCHAIN IS VALIDATED, DECENTRALIZED AND TRANSPARENT” is enough explanation.
I will try to explain a little deeper.
Bitcoin is a digital currency whereby encryption techniques are used to regulate the generation of units of currency and to verify each transfer of funds, in an open/transparent and decentralized method using the blockchain technology.
How are bitcoins created?
Bitcoins are created through a process called “mining” and each blockchain mined consists of 12.5 Bitcoins these 12 bitcoins are allocated to the miners. The mining process verifies each bitcoin as a member of legal blockchain, each blockchain ever created can be downloaded and stored on every computer.
In our traditional banking system we trust our banks with our funds for them to keep, conduct transactions and assign its value by inflation/deflation. They keep the ledgers of all transactions conducted and create funds under regulated laws.
The bitcoin value depends on its liquidity, market capital, mining difficulty usability and other factors.
In a more layman term of Bitcoin is a computer generated code that represents a certain value and can be transferred from one person to another. Each transfer is verified and decentralized. Íf you still do not get it do'not worry about that as there are a lot of people whom after years of reading and studying crypto currencies also do not get it. You may have to read up on it to understand it more.
There are other digital currencies created based on this blockchain technique or technology and each have a varying technique to how they are mined or created. A few of them are ETHEREUM, LITECOIN, ARAGON, AUGUR, DASH, DECRED, EOS, GNOSIS, GOLEM. This is a reatively new and interesting sector in the information age and everything is understood even by everyone. Currently Bitcoin has grown in value over % 2500 from $1700.00 in may to $4400.00 as of today, within a period of 3 months. As the digital currency is being used more and more the value is predicted to continue rising and will eventually become as vital as the internet to the modern society. My thoughts are that the Bitcoin is here to stay and not just a fad, not a fraud, not a ponzy scheme.
The aspect of bitcoin being a bubble is a main issue as there are a lot of new businesses growing from this explosive technology and hence is utilized both for good and bad intentions. An example is the situation with the “darknet silkroad website” seizure issue several years ago, READ UP ON THAT HERE which was a clear example of the wrong way to use these digital assets and a very bad business model, or the “wanna cry ransom-ware attack” READ UP ON THAT HERE a few months ago. Not withstanding there are a lot of interesting projects going on in the bitcoin BLOCKCHAIN and crypto currency community which I will be doing a series of posts on in the following days so stay tuned.
A FEW TOPICS THAT WILL BE COVERED?
WHY ARE BUSINESSES ADOPTING BITCOIN AS A PAYMENT SYSTEM?
WHAT ARE ICO’S (INITIAL COIN OFFERINGS) AND 21 CENTURY BLUE UNICORN COMPANIES?
WHAT WILL HAPPEN TO BITCOIN AND BLOCKCHAIN TECHNOLOGY?
WHY BLOCKCHAIN TECHNOLOGY IS THE FUTURE?