Thursday , May 19 2022

Repeated divisions of Bitcoin undermine long-term value


Cryptocurrencies crashes again. Bitcoin fell to the lowest price in more than a year. More than $ 600 billion in the Talep market capitalization Talep demand has disappeared from the universe of so-called money and digital markers since the beginning of January.

A bit like Burberry foulard, bitcoin has been the victim of its success, having knocked down the value of countless knock-offs.

The first and best known bitcoin of crypto currencies, created from smart math and organized through a global computer network that reverses the banking system, is now about $ 5,500. This is far from the greatest of all time, which is around $ 20,000 last December. Other crypto coins got worse. In 2017, Ripple, the banker-friendly central crypto currency that won more than 36,000 percent in 2017, lost about 85 percent of its value since the beginning of 2018.

It is a foolish game for prices to move in places where there is no basics in a market and where bulking is intense. But the feeling is at least partially understandable. This time, crypto traders seem to have been disturbed by a am hard fork temel – a division that occurs when developers of a crypto currency do not agree on how to update its basic software.

The last ideological disagreement was over the ın bitcoin money orijinal, a copy of the original, which was the result of another such fork last year. Thursday was divided into two different versions.

Such dilution is precisely that crypto money is ultimately doomed to failure. Unlike the physical gold in which Bitcoin is designed to be imitated, there is no real scarcity of this digital gold. Although the original is only 21 meters, there are no covers on the number of removable versions. There is no limit to the number of competing crypto coins that can be created in a few clicks by anyone with a basic coding clutch. CoinMarketCap, a cryptographic statistics site, now lists prices for more than 2,000 crypto currencies.

The money obtained with the first money offers – the last part of the market, which is largely responsible for the wildest conditions in the 2017 prices of the krypton's wild west, where the most daring cowboys can be found – has sharply dropped in recent months. In a study published by EY last month, a prototype of 71 percent of those using the ICO to raise money, although 372 ICO's last year's consultancy examined; substantially inin all of the values ​​of 30 percent. not shown. (allow a running product).

Although the bubble has started to burst, it is not quite fair to conclude that bitcoin is a failure failure. His fake creator, Satoshi Nakamoto, was not the first to try a new electronic currency, but he was the first to succeed, because bitcoin was able to solve the problem of a decentralized digital currency that was repeatedly spent.

Few people could have guessed that bitcoin produced thousands of copycat crypto money, at a point close to $ 1tn. And 10 years after its establishment, bitcoin is regularly on the pages of newspapers around the world.

Crypto currencies can be quite volatile and bad for the environment, but even though criminals are among the main users, sending money is valuable as a tool to withstand censorship.

Whether or not the crypto currencies are in the short term or not, it is everyone's guess whether or not to recover some of their losses. The prices are very random and evidence shows that they are being quite manipulated. This basically makes it impossible to guess where to go next.

One thing is certain under the laws of supply and demand: something that can be reproduced infinitely should not have a long-term value. Anyone who tries to put something like this on the market – despite this, many new bells and whistles on it – actually trying to sell hot air.

I [email protected]

Source link