• Mon. Feb 26th, 2024

Understanding the Bitcoin Paradox

Bitcoin

 

Bitcoin has been something of an enigma to many people.


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It is this somewhat mysterious facade that has created the Bitcoin bubble.

However, this current Bitcoin bubble may be one that will last for decades.

To fully understand how the Bitcoin bubble works, a few factors have to be considered.

Bitcoin Facts

Bitcoin has no Central Owner


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In truth, Bitcoin, as the first of the cryptocurrencies, has no central owner.

No one knows who the Bitcoin founder is, (or at least they are not saying).

It is clear that the mechanisms that drive the world’s first cryptocurrency solve many problems that current ecosystems face.

The Bitcoin founder has been able to redefine how we see asset ecosystems.

And this perception drives the Bitcoin price to levels that are previously unheard of.

While the Bitcoin founder, through the Bitcoin whitepaper sought to create a new ecosystem, he did more than that.

We have a thriving community that has created new assets based on similar concepts in what is now collectively called the cryptocurrency space.

We also have the concept of the distributed ledger which is hosted among many parties rather than a single one.

And a new marketplace where the Bitcoin price is the leading indicator of the health of the cryptocurrency space.

It also gave birth to the rise of a new concept: decentralization.

The democratization of assets is now the new mantra for many, as ownership of individual assets has grown tremendously.

Bitcoin Halving Events Create Scarcity

The Bitcoin halving events have created the scarcity that many assets lack.

It is this scarcity that drives the Bitcoin price up rather than just the market forces that er artificially driven by demand and supply.

Bitcoin halving events have proven over time to have a broad effect on the Bitcoin to USD values.

And with the exponential rise in Bitcoin to USD values, we now have a new method of evaluating digital assets.

With the next Bitcoin halving event occurring sometime in 2024, we shall see higher rises in Bitcoin to USD values as the miners race for fewer amounts of Bitcoin.

Certain quarters think Proof of Stake (PoS) should be the method of transaction confirmation to avoid the power issues that occur with Bitcoin mining.

A Bitcoin Cash (BCH) hard fork called Bitcoin SV was created to solve those problems.

Even though Bitcoin SV still uses Proof-of-Work (PoW) as a transaction confirmation mechanism, it offers many other advantages that conform to Satoshi’s principles.

Bitcoin SV Creates New Solutions

Bitcoin SV was created in 2018 to counter many of the issues that have occurred within the wider cryptocurrency community.

Bitcoin SV, in its mining process, allows for higher wattage throughputs than Bitcoin.

It has created greater efficiency, and it has shown in the ledger abilities of the cryptocurrency.

The use of Directed Acyclic Graph (DAG) technology in the data storage process has also improved scalability tremendously.

With an increased block size limit of 2 Gigabytes after the Quasar upgrade in 2019, Bitcoin SV can solve many of the problems that exist in both Bitcoin and Bitcoin Cash.

However, on the human side, Bitcoin SV still has a long way to go.

Interactions with cryptocurrency exchanges have been tepid at best.

Also, the “civil war” that created Bitcoin SV proves that they may have governance issues further down the lane.

And that may be one reason why Bitcoin may still be the king of the hill for some time to come!

 

Bitcoin Wallets Replace Bank Accounts in Many Instances

Bitcoin wallets have served as a means to store the world’s first digital asset.

It has also created the concept of cryptocurrency wallets for all altcoins.

Now, people would rather store their assets in cryptocurrency wallets rather than in banks and other financial institutions.

It is this ability to store assets independently that gives the Bitcoin wallet its allure.

And with Bitcoin becoming part of the mainstream, Bitcoin wallets are now becoming the new cool; especially for Generation Z and their “get it now” approach to issues.

It also means that with further Bitcoin adoption, most of the issues that surround the unbanked could be solved in a matter of seconds rather than days as is the case with banking and banking regulation.

It has also made Bitcoin prediction become one of the hottest digital activities as traders make a killing off the movements of the Bitcoin ticker.

Bitcoin Ticker Movements Aid Bitcoin Prediction

The rise of digital assets has created a new paradigm where price volatility comes with the turf.

The creation of the Bitcoin ticker has made many people simply become Bitcoin traders.

Rather than do anything else all day, they are now able to make vast fortunes from trading cryptocurrencies all day without any need for any other job.

With access to Bitcoin’s price history, they can make Bitcoin predictions that generate profits for themselves.

Every movement of the Bitcoin ticker allows traders to make the right or wrong decisions as prices move.

As these traders make decisions, they are the ones who become the real market movers as the world watches on in fascination how Bitcoin prices continue to go up without any chance of coming back to zero.

Bitcoin prediction becomes even more complex as the traders get all technical and deploy all sorts of tools to ensure they make a profit.

These tools assess Bitcoin price history from both a technical and fundamental analysis perspective.

Using artificially intelligent tools as a foundation, these tools provide a

The advantage of this is that the Bitcoin ecosystem has those who ensure asset liquidity.

Just like any other asset, as long as these traders continue to speculate on Bitcoin prices, we are sure of the longevity of the cryptocurrency space.

Traders have given the space the much-needed liquidity that is needed for everything to run smoothly!

Putting it All Together

At the end of the day, there isn’t a single entity that is responsible for how Bitcoin works.

Rather, Bitcoin is one of those assets that has created a new approach to seeing how people cooperate globally.

A movement like this that has only shared belief in mathematical code could also herald the creation of new types of ecosystems within and around all fields.

From elections to healthcare to even education, it is obvious the world is unto something as regards cryptocurrencies and their allied technologies.

What Next?

As the world struggles to catch up and learn how Bitcoin and the altcoins have changed the world, we are going to see the emergence of all kinds of innovation.

We are going to see people look at coding as the next big thing after coffee.

People are going to understand that software development will aid humanity’s next evolution as cooperation is more important than a singular existence.

As world governments continue to catch up, we are going to see a new paradigm in the way they approach technical issues.

It will reach a time when anyone who can’t code will be considered uneducated.

Developers and techies are the ones who will rule in this new future.

All because of Bitcoin’s emergence.

It could even work in many other ways as space travel becomes the next big thing!

One thing is certain: humanity is on its way to becoming a type 3 civilization because of Bitcoin.


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Kevin Moore - E-Crypto News Editor

Kevin Moore - E-Crypto News Editor

Kevin Moore is the main author and editor for E-Crypto News.