Bitcoin Value: Understanding Bitcoin's Scarcity, Flexibility And Volatility
Described by some as an investment roller coaster ride, the value of bitcoin and its unabating volatility can be difficult to comprehend.The fluctuations in bitcoin’s value acts as both a draw and a deterrent to investors, in what has been described by many commentators as a modern-day gold rush. The true extent of bitcoin’s investment volatility can be best understood by examining two hypothetical investment scenarios:Investor A bought $10,000 worth of bitcoin on March 14, 2020. At the time, they were able to buy roughly two bitcoin. Having held them for exactly twelve months, he....
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Bitcoin is obviously scarce. And it seems to be becoming scarcer over time. The post Understanding Bitcoin’s Scarcity appeared first on Bitcoin Magazine.
It is common for people to reflect on every facet of their lives once they recognize the absolute, verifiable digital scarcity created by Bitcoin.
BitGesell represents a deflationary cryptocurrency that closely resembles bitcoin, but comes along with a few design changes. Its value proposition stems from Silvio Gesell’s financial market philosophy, who imagined monetary units that lose their value over time through demurrage. To keep things simple, BitGesell achieves scarcity through the means of accelerated block reward halvings and transaction fee burns. The Dawn of the Crypto Age & Replacing Outdated Fiat Over the last few years, the worldwide financial system has continuously lost its legitimacy, thereby positioning itself....
In Bitcoin, the promise of a limited supply is great. This was one of the biggest things that initially appealed to me when I heard about Bitcoin. “No more than twenty one million bitcoins will ever exist!” But can this promise be kept in the long run? Has the Promise Already Been Broken? Some would […] The post 21M Bitcoin and the....
Credit unions may one day find some of their core functions replicated by bitcoin, a new report suggests. According to Mercator Advisory Group, a global consultancy for the payments industry, such an evolution would only occur should bitcoin's market volatility lessen and security mechanisms develop further. The report, entitled Understanding Bitcoin's Implications for Credit Unions, largely serves as a vehicle for understanding the fundamentals of bitcoin and its distributed ledger, the blockchain. Not until the last page does the report turn to the implications of the technology on....