Posted in Finance

Bitcoin Converter – All it is hyped Up to Be?

Widely regarded as the greatest investment vehicle of all time, Bitcoin has seen a meteoric rise during year moving from 777 all the way to 17,000. Creating millionaires from opportunistic investors and leaving financial institutions open-mouthed, Bitcoin has answered its critics at each milestone this season and some think that this is only the start. The launch of Bitcoin Futures on December 10th, which for the first time enables investors to enter the Bitcoin market via a significant regulated US exchange, suggests that we are getting started. What makes Bitcoin so Valuable is that there is a finite amount in life. There will only ever be a maximum of 21 million Bitcoins and unlike ordinary fiat monies you cannot print more of these whenever you feel like. This is because Bitcoin runs on a proof of work protocol: to be able to make it, you must mine it with computer processing power to solve complicated calculations on the Bitcoin Blockchain.

Bitcoin

When this is achieved, you are rewarded with Bitcoin as payment for the job you have done. Regrettably the reward you get for mining has decreased drastically almost annually because Bitcoins beginning, meaning that for most people the only viable means to get Bitcoin is purchasing it on a market. At the current price levels is that a risk worth taking. Many believe Bitcoin Is merely a bubble. I talked to cryptocurrency specialist and long term investor Duke Randal who believes 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 late 90s. Rates are only speculation based, and when you look at Bitcoins performance as a real currency it is almost embarrassing. For people who do not understand, the dot com bubble was a period between 1997-2001 where many internet businesses were and given outrageously optimistic valuations based only on speculation which later plummet 80-90percent as the bubble started to collapse in the early 2000s. Some companies like eBay and Amazon, recovered and sit above those valuations but for others it was the end of the line.

Bitcoin converter¬†was originally created in order to take power away from our financial systems and put people in charge of their own money, cutting out the middle man and allowing peer to peer transactions. However, it is now among the slowest cryptocurrencies on the current market, its trade rate is four times slower than the fifth most important cryptocurrency and its closest competitor for payment alternatives Lit coin. Untraceable solitude coin Montero makes trades even faster, boasting an average block period of two minutes, a fifth of the time Bitcoin can do it and that is without anonymity. The world’s second most important cryptocurrency, Ethereum, currently has a higher trade volume than Bitcoin despite being valued at 676 bucks per Ether compared to Bitcoins 16,726 per Bitcoin.