What made Bitcoin unique is that it provided the ability to make payments directly to other people, without using banking institutions. This has created an almost anonymous way to pay third parties.
However, the constant increase in prices is not due to the fact that it is a new currency and a better method of payment. Rather, it is becoming more popular due to its volatility. Since there is no governing organization for Bitcoin, supply and demand are not controlled by external factors. However, the predefined number of Bitcoin coins is set at 21 million. Therefore, the market capitalization is determined by the amount of bitcoins currently available. This makes the market especially vulnerable to manipulation. Also, there are no laws that protect fair trade in bitcoins. The fact that Bitcoin is a flawed system is attested by numerous cases of price manipulation. For example, major cryptocurrency figures can have a big impact on the value of bitcoin by saying that the price will continue, or even more so, telling everyone to get out of bitcoin before it collapses. This scares bitcoin owners who will start selling their bitcoins for fear of losing money which could lead to a classic stock market crash like the Wall Street crash of 1929.
Due to the skyrocketing cost, this smart payment method has been getting a lot of media attention lately. The value of bitcoins increased from $ 1,184 on April 16 to a staggering $ 19,343 on December 16 of the same year.
The point is that most of the people who buy bitcoins right now at https://gpucoin.net/ are investing in bitcoins because of its potential for big profits, rather than using it as currency. Therefore, Bitcoin has completely lost its function as a currency and is simply a popular gambling game with great profit potential until the bubble bursts.Continue Reading