The Bitcoin is riding high
The value of a single Bitcoin is more than $5000
Today bitcoin reached $5000 dollars, yes that’s not a typo you read it right, the value of a single bitcoin is now more than $5000.
As the chart shows the value of bitcoin has been going up and up, and there is no sign of turning back.
So what makes bitcoin so valuable?
One thing is it’s scarce, this is because the creator of bitcoin has put on a maximum number of bitcoins that can be created. 21 million, so there can be no more than 21 bitcoins.
The limit of 21 million bitcoins is “hardwired” into the protocol, and there will never be more bitcoins than this.
Second reason is the usage, back when bitcoin came along it was just funny money that no one wanted to use, then it was used by people in the dark web to buy and sell illegal items, but things have changed during the last 5 years, you can now use bitcoins to do transactions online, buy items, apps and game.
Legend has it that the first actual use of bitcoins in real world was when a man ordered a pizza for 10,000 bitcoins. If that pizza guy has hold of the bitcoins now it would worth millions of dollars in today's value.
Although valuable today it has never been easy, there were times where bitcoin felt vulnerable, like the MountGX hack few years back got bitcoin prices crashing, there has been lot of new bitcoin forks and similar cryptocurrencies that has come up in recent times, each one having their own unique features.
ICOs instead of IPOs
Whole new markets have come up because of bitcoin and other cryptocurrencies that never existed few years back. People now invest money and trade cryptocurrencies like they do in stockmarket. Also now startups host ICOs (initial coin offerings) instead of IPOs to raise money and go public where companies give away cryptocurrencies instead of stocks.
Legend has it that the first actual use of bitcoins in real world was when a man ordered a pizza for 10,000 bitcoins.
The blockchain technology which is at the heart of bitcoin is also looks promising where it appears as if it can be applied to various industries not only in financial and banking industry.
Just another bubble?
Just like the dot com bubble some people feel as if the whole bitcoin and ICOs are just a bubble waiting explode, I myself personally is not totally convinced about the bitcoin, cryptocurrency hype, whether bitcoin is a bust or is it going to be something big? only time will tell.
