Bitcoin peaked a month ago, on December 17, reaching a high of nearly $20,000. At the time of writing this article, the price of the cryptocurrency is less than $11,000, which is a loss of about 45%.Not only US$150 billion Lost market value.
In the encrypted comment, there are a lot of hand twisting and gnashing of teeth. This goes hand in hand, but I think that people like “I tell you” have an advantage over “excus makers”.
Here’s the thing: unless you just lost your Bitcoin shirt, it doesn’t matter at all. Moreover, the “experts” you might see in the press did not tell you why.
In fact, the collapse of Bitcoin is really great… because it means that all of us can stop thinking about cryptocurrencies altogether.
The death of Bitcoin…
In a year or so, people will not talk about Bitcoin in the grocery store or on the bus like they do now. This is why.
Bitcoin is the product of helplessness. Its designers made it clear that this cryptocurrency is a response to the government’s abuse of legal currencies such as the US dollar or the euro. It should provide a virtual currency-based, independent, peer-to-peer payment system. This virtual currency cannot be devalued because they are limited in number.
Abandoned this dream long ago and turned to support primitive speculation. The irony is that most people are paying attention to Bitcoin because it seems to be an easy way to get more fiat currency! They don’t own it because they want to use it to buy pizza or to refuel.
In addition to being a bad electronic transaction method, Bitcoin is very slow and annoying, but as a speculative tool, the success of Bitcoin makes it useless as a currency. If the appreciation is so fast, why would anyone spend it? When the currency depreciates rapidly, who will accept it?
Bitcoin is also a major source of pollution. Just completing a transaction requires 351 kilowatt-hours of electricity-which also releases 172 kilograms of carbon dioxide into the atmosphere. This is enough to power an American home for a year. So far, all the energy consumed by Bitcoin mining can power nearly 4 million American homes a year.
Paradoxically, Bitcoin as an old-fashioned success Speculative game -Not the intended use of its liberals-attracted repressive actions by the government.
China, South Korea, Germany, Switzerland and France have implemented or are considering banning or restricting Bitcoin transactions. Some intergovernmental organizations have called for concerted action to curb the obvious bubble. The US Securities and Exchange Commission once seemed likely to approve financial derivatives based on Bitcoin, but now it is hesitant.
According to Investing.com: “The European Union is implementing stricter rules to prevent money laundering and terrorist financing on virtual currency platforms. It is also studying ways to restrict cryptocurrency transactions.”
One day, we may see a fully functional and widely accepted cryptocurrency, but it will not be Bitcoin.
…But a boost to crypto assets
Ok. Overcoming Bitcoin allows us to see the true value of encrypted assets. That’s it.
To use the New York subway system, you need a token.You can’t use them to buy other things…though you can Sell to people who want to use the subway more than you.
In fact, if the supply of subway passes is limited, an active market may emerge. Their transaction price may even exceed the original cost.It all depends on how many people miss you Use the subway.
In short, this is the scene of the most promising “cryptocurrency” other than Bitcoin.They are not money, they are Token -If needed, enter the “encryption token”. They are not used as general currency. They are only good on the design platform.
If these platforms provide valuable services, people will need these encrypted tokens, which will determine their prices. In other words, encrypted tokens will have a certain value, and people can cherish what you can get from related platforms.
That would make them Physical assets, with Intrinsic Value -Because they can be used to get things that people cherish. This means that you can reliably anticipate revenue or service flow by owning such encrypted tokens. Crucially, you can measure future income streams based on the price of encrypted tokens, just like we calculate the price-to-earnings ratio (P/E) of stocks.
In contrast, Bitcoin has no intrinsic value. It has only one price-a price determined by supply and demand. It cannot generate future revenue streams, and you cannot measure anything like the price-to-earnings ratio.
One day, it will become worthless, because it will not allow you to get anything real.
Ether and other crypto assets are the future
Crypto tokens are definitely like It’s like a currency. It is traded on a cryptocurrency exchange with the code ETH. Its symbol is the Greek capital Xi character. It is mined through a process similar to (but less energy consuming) Bitcoin.
But Ethereum is not a currency. Its designers describe it as “the fuel for running the distributed application platform Ethereum. This is a form of payment by the platform’s customers to machines that perform requested operations.”
The Ethernet token allows you to access one of the most complex distributed computing networks in the world. It is encouraging that large companies are collapsing with each other to develop practical, practical uses.
Because most people who trade it don’t really understand or care about its true purpose, the price of Ethereum has bubbled and bubbled like Bitcoin in recent weeks.
But in the end, Ethereum will return to a stable price based on the demand for computing services it can “buy” for people.This price will represent actual value Can be priced in the future. It will have a futures market, as well as exchange-traded funds (ETFs), because everyone will have a way to assess their underlying value over time. Just like we deal with stocks.
What is this value? I do not know. But I know it will be more than just Bitcoin.
My suggestion: Get rid of your Bitcoin and buy Ether the next time it drops.