Smart Bitcoin Strategies To Accumulate Gold Bullion

Once this is achieved, you are rewarded with Bitcoin as payment for the “work” you have done. Unfortunately the reward you get for mining has decreased drastically almost annually since Bitcoin’s inception, which means that for most people the only viable way to get Bitcoin is buying it on an exchange. At the current price levels is that a risk worth taking?Image result for bitcoin

Many believe Bitcoin is simply a bubble. We spoke to cryptocurrency expert and long-term investor Fight it out Randal who thinks the asset is overvalued, “I would compare this to many supply and demand bubbles over history such as Dutch Tulip Mania and the dot com bubble of the overdue 90s. Prices are solely speculation based, and when you look at Bitcoin’s functionality as an genuine currency it is almost embarrassing. ” For many who avoid know, the dot com bubble was a period between 1997-2001 where many internet companies were founded and given outrageously upbeat valuations based purely on speculation that later plummeted 80-90% as the real estate started to break down in the early 2000s. Some companies such as eBay and Amazon, recovered and now stay far above those value but for others it was the end of the line

Bitcoin was formerly created in order to take power away from our financial systems and put people in control of their own money, cutting out the middle man and enabling peer to peer dealings. However, it is now one of the slowest cryptocurrencies on the market, its transaction speed is four times slower than the fifth biggest cryptocurrency and its nearest rival for payment solutions Litecoin. Untraceable privacy coin Monero makes transactions even more rapidly, boasting an average prevent moments of just two minutes, a fifth of the time Bitcoin can do it in, and that’s without invisiblity. The world’s second biggest cryptocurrency, Ethereum, already has a higher transaction quantity than Bitcoin despite being valued at only $676 dollars per Ether in comparison to Bitcoin’s $16, 726 per Bitcoin.

So why is Bitcoin’s value so high? Specialists Duke Randal the same question. “It all goes back to the same source and demand economics, relatively there is not very much Bitcoin available and its recent surge in price has attracted a whole lot of media attention, this combined with the launch of Bitcoin futures which many see as the first sign Bitcoin is being accepted by the mass market, has led to a lot of individuals appearing in the media for financial gain. Just like any asset, when there is a higher demand to buy than to sell, the cost goes up. This is bad because new investors are entering the market without understanding blockchain and the fundamental principles of these currencies that means they are prone to get burnt”.

Another reason is the fact that Bitcoin is extremely risky, it is known to swing up or down countless numbers of dollars in less than a minute which if you are not used to nor expecting it, causes less experienced traders to panic sell, producing in a loss. This particular is yet another reason Bitcoin will struggle to be adopted as a form of payment. Typically the Bitcoin price can move substantially between the time vendors accept Bitcoin from customers and sell it on to exchanges for their local currency. This particular erratic movement can wipe out their entire profitability. May this instability go away any time soon? Not likely: Bitcoin is a relatively new resource class and although recognition is increasing, only a very small percentage of the world’s population keep Bitcoin. Until it becomes extensively distributed and the liquidity boosts significantly, the volatility will continue.