Fundamentals of Bitcoin:
Bitcoin aims to be a vehicle for payments and a store of value, similar to gold. The payment aspect of bitcoin has struggled due to its lack of transaction throughput, but continues to succeed as a store of value due to its deflationary nature. Every 10-15 minutes, a new block is added to the bitcoin blockchain; a blockchain is simply a distributed, public ledger that anyone can access in order to figure out the transfers and locations of value or data. The value transferred is tracked and secured by the many that "mine" bitcoin and the fact that all these miners must come to consensus about the data on the new block. Since their must be a majority decision on the data of a block, it is nearly impossible for a miner to lie and steal funds/data from someone. After a block is done being mined, the miners are rewarded 12.5 bitcoin; distributed proportionately between the miners based on their work done(power contributed from their mining rigs). Every 4 years (roughly), the reward given to miners per block is split in half (6.25 per block in May 2020). This causes miners to sell their bitcoins for much higher values so their mining operations are still profitable. On average, it costs between $1500-$6000 (depending on where the miner lives) to mine 1 bitcoin. This value will double (more or less depending on the price of electricty per kWh) in May 2020 since it will cost twice as much money to receive the same amount of bitcoin as before. The bitcoin halving has stimulated the value of bitcoin in the positive direction since bitcoin's creation.
Fundamentals of Crypto/Blockchain:
Bitcoin is the gold of the cryptocurrency economy. There may be certain "precious metals" in this new economy that prove to be more useful such as Ripple, Stellar, ZCash, etc, but the thing that is certain is that cryptocurrencies are proving to be the new financial infrastructure for banks and developing countries which reduces cost of financial instruments and increases their security: Bitcoin/ZCash (store of value) and Ripple/Stellar (cross border payments for banks/the public). One could argue "bitcoin/crypto can't be a store of value because of its volatility." I believe this is a very incorrect statement because the monthly volatility of Bitcoin during its bull/bear markets has been decreasing since the creation of bitcoin. (reference: www.buybitcoinworldw...om/volatility-index/) This asset is still very volatile because we are EARLY, but bitcoin's volatility has been ranging lower and lower. In the next few years, banks and big economies will start to use crypto/blockchain more and more for cross-border payments and investment vehicles. The more speculative investments like Ethereum and other general purpose blockchains definitely have their use in society, but still need work and time to develop scalable, secure data transfer networks.
These use cases are clear because it works and it saves money for large value transfers. The value of these currencies will increase with adoption of them.
Bitcoin aims to be a vehicle for payments and a store of value, similar to gold. The payment aspect of bitcoin has struggled due to its lack of transaction throughput, but continues to succeed as a store of value due to its deflationary nature. Every 10-15 minutes, a new block is added to the bitcoin blockchain; a blockchain is simply a distributed, public ledger that anyone can access in order to figure out the transfers and locations of value or data. The value transferred is tracked and secured by the many that "mine" bitcoin and the fact that all these miners must come to consensus about the data on the new block. Since their must be a majority decision on the data of a block, it is nearly impossible for a miner to lie and steal funds/data from someone. After a block is done being mined, the miners are rewarded 12.5 bitcoin; distributed proportionately between the miners based on their work done(power contributed from their mining rigs). Every 4 years (roughly), the reward given to miners per block is split in half (6.25 per block in May 2020). This causes miners to sell their bitcoins for much higher values so their mining operations are still profitable. On average, it costs between $1500-$6000 (depending on where the miner lives) to mine 1 bitcoin. This value will double (more or less depending on the price of electricty per kWh) in May 2020 since it will cost twice as much money to receive the same amount of bitcoin as before. The bitcoin halving has stimulated the value of bitcoin in the positive direction since bitcoin's creation.
Fundamentals of Crypto/Blockchain:
Bitcoin is the gold of the cryptocurrency economy. There may be certain "precious metals" in this new economy that prove to be more useful such as Ripple, Stellar, ZCash, etc, but the thing that is certain is that cryptocurrencies are proving to be the new financial infrastructure for banks and developing countries which reduces cost of financial instruments and increases their security: Bitcoin/ZCash (store of value) and Ripple/Stellar (cross border payments for banks/the public). One could argue "bitcoin/crypto can't be a store of value because of its volatility." I believe this is a very incorrect statement because the monthly volatility of Bitcoin during its bull/bear markets has been decreasing since the creation of bitcoin. (reference: www.buybitcoinworldw...om/volatility-index/) This asset is still very volatile because we are EARLY, but bitcoin's volatility has been ranging lower and lower. In the next few years, banks and big economies will start to use crypto/blockchain more and more for cross-border payments and investment vehicles. The more speculative investments like Ethereum and other general purpose blockchains definitely have their use in society, but still need work and time to develop scalable, secure data transfer networks.
These use cases are clear because it works and it saves money for large value transfers. The value of these currencies will increase with adoption of them.
Comment:
Its over for now. sell your holdings. youre still up 5x-10x in the past 2 years. take your gains and be patient