Bitcoin was declared dead several times in its 10-year life; his recent fall led to yet another obituary, but why is Bitcoin NOT dead?
The popular site called 99Bitcoins is closely monitoring how many times Bitcoin has been declared dead in the mainstream media. Currently, 336 obituaries have been accumulated for digital currency.
The latest drop in Bitcoin price, which raised it from $ 6,000 to almost $ 3,000, caused a new panic and surrender, as many believed that the cryptocurrency had survived its last days.
There were concerns about its utility and usefulness, as well as the potential possibility of the so-called death spiral in mining Bitcoins, since many miners closed the store. Nevertheless, Bitcoin continues to exist, and at the time of this writing, it has recovered to more than $ 4,000.
So what does Bitcoin support? He has no CEO, no company headquarters, and because of his decentralized nature, there is no one who can support him to support him; It relies solely on those interested in this.
Base blockchain
Bitcoin, or cryptocurrencies in general, have a special relationship with the underlying technology, the blockchain. Of course, they depend on each other, but they also move independently from each other in many ways.
The blockchain is moving along a completely different path than Bitcoin, but it was the initial Bitcoin explosion in the mainstream financial space that made people take the blockchain seriously.
Now, when the cryptocurrency bubble has essentially burst, there is much less hype and interest to it. However, the blockchain, the technology behind all this, gets a chance to go out and shine only for its technological reasons.
For this reason, Bitcoin is still very relevant. The blockchain progression is built stably and reliably, and thanks to its implementation in all centers, people still appreciate the usefulness of the digital token.
Bitcoin, as the main digital token, which includes all the basic elements of cryptocurrency and blockchain, such as decentralization and transparency, and, of course, distribution, is the embodiment of a functioning token economy.
Managed mining
Another reason why Bitcoin has not completely capitulated is the built-in tuning of the complexity of mining. Many were worried that Bitcoin might go bankrupt if miners, an important part of any cryptocurrency with performance check, decide to abandon Bitcoin due to increased complexity and loss of profitability.
Indeed, when the price dropped significantly in November, many miners closed, and the hashing coefficient also fell. But since Bitcoin has a built-in adjustment, a lower hashing rate led to an increase in mining complexity and, thus, increased profitability, once again seducing miners.
With the increase in the number of miners on the blockchain, health and activity increased, leading to an increase in interest and investment in the markets. This, in turn, and in aggregate, then helps to raise the price and attract more miners, again increasing profits and prices.
Getting rid of speculators
There is also a big difference between the explosion of a speculative bubble and the death of the market. Some markets can be destroyed by a pop-up hint, but in the case of bitcoins, it reflects the mirror bubble, because it has a similar nature.
With its underlying blockchain, equal to the Internet, and the ICO hoax and other factors equal to Dot Com companies, it can be seen that this type of burst bubble is a chance for Bitcoin to get rid of its stupid speculative investors and allow those who are serious and successful. restore the market based on important technologies.
Bitcoin will still be called dead, and erroneously, because it only hit the mainstream in the last 18 months or so.
However, if you scale down a little, you can see that an investor who bought Bitcoin two years ago, and not, say, a year ago, would still have increased his investment by 300 percent.
The latest drop in Bitcoin price, which raised it from $ 6,000 to almost $ 3,000, caused a new panic and surrender, as many believed that the cryptocurrency had survived its last days.
There were concerns about its utility and usefulness, as well as the potential possibility of the so-called death spiral in mining Bitcoins, since many miners closed the store. Nevertheless, Bitcoin continues to exist, and at the time of this writing, it has recovered to more than $ 4,000.
So what does Bitcoin support? He has no CEO, no company headquarters, and because of his decentralized nature, there is no one who can support him to support him; It relies solely on those interested in this.
Base blockchain
Bitcoin, or cryptocurrencies in general, have a special relationship with the underlying technology, the blockchain. Of course, they depend on each other, but they also move independently from each other in many ways.
The blockchain is moving along a completely different path than Bitcoin, but it was the initial Bitcoin explosion in the mainstream financial space that made people take the blockchain seriously.
Now, when the cryptocurrency bubble has essentially burst, there is much less hype and interest to it. However, the blockchain, the technology behind all this, gets a chance to go out and shine only for its technological reasons.
For this reason, Bitcoin is still very relevant. The blockchain progression is built stably and reliably, and thanks to its implementation in all centers, people still appreciate the usefulness of the digital token.
Bitcoin, as the main digital token, which includes all the basic elements of cryptocurrency and blockchain, such as decentralization and transparency, and, of course, distribution, is the embodiment of a functioning token economy.
Managed mining
Another reason why Bitcoin has not completely capitulated is the built-in tuning of the complexity of mining. Many were worried that Bitcoin might go bankrupt if miners, an important part of any cryptocurrency with performance check, decide to abandon Bitcoin due to increased complexity and loss of profitability.
Indeed, when the price dropped significantly in November, many miners closed, and the hashing coefficient also fell. But since Bitcoin has a built-in adjustment, a lower hashing rate led to an increase in mining complexity and, thus, increased profitability, once again seducing miners.
With the increase in the number of miners on the blockchain, health and activity increased, leading to an increase in interest and investment in the markets. This, in turn, and in aggregate, then helps to raise the price and attract more miners, again increasing profits and prices.
Getting rid of speculators
There is also a big difference between the explosion of a speculative bubble and the death of the market. Some markets can be destroyed by a pop-up hint, but in the case of bitcoins, it reflects the mirror bubble, because it has a similar nature.
With its underlying blockchain, equal to the Internet, and the ICO hoax and other factors equal to Dot Com companies, it can be seen that this type of burst bubble is a chance for Bitcoin to get rid of its stupid speculative investors and allow those who are serious and successful. restore the market based on important technologies.
Bitcoin will still be called dead, and erroneously, because it only hit the mainstream in the last 18 months or so.
However, if you scale down a little, you can see that an investor who bought Bitcoin two years ago, and not, say, a year ago, would still have increased his investment by 300 percent.
