One of the more popular uses of Bitcoin is as a gold-like store of value over the long-run. Claims that Bitcoin may someday be valued as high as $100,000 per coin are based on this idea of the coin as "digital gold."
However, a number of studies have suggested that Bitcoin is a rather poor store of value, being subject to a fair amount of speculation and volatility and lacking the insurance other commodities have against theft or system failure.
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The supply of bitcoins in the world is capped at 21 million and, currently, about 18.7 million have been mined. The production of new coins is slowed every four years or so, with the number of coins minted upon completion of a block cut in half each time.
The limited supply is one of the things that makes Bitcoin attractive to many people. Decentralization means it is unlikely that any one person or group could gain control of the ledgers or enough of the currency to manipulate its value.
While early adoption was limited by technical difficulties and legal gray areas, the increasing number of uses and public awareness has increased demand. The number of places accepting them has spiked in recent years and is likely to increase alongside institutional acceptance of the currency. As the usefulness of Bitcoin increases, so does demand for them, especially when access to banking is limited.
On the downside, a large amount of the demand for the coin continues to come from speculators who buy the coin in hopes of it increasing in value. Also, a fair amount of the demand is for questionable activity.
While Bitcoin is still subject to swings that would be eye-popping in other markets, this is an asset that does not behave quite like other, more traditional ones. As a result, the volatility of its price, which has dropped over the last few years, may not be a sign of the impending collapse of the coin's value but rather a feature of digital currencies.
Or, it may be something else entirely. It is still too new to even find much agreement on how to study the stuff
Countless other cryptocurrencies have entered the market. While it remains the dominant coin, Bitcoin's market share has fallen from 94 percent in 2013 to 64 percent in March 2020. Other major cryptocurrencies have different uses, but they often do overlap with the possible uses of Bitcoin.
Overall, Bitcoin benefits from network effects: it becomes more valuable as more people use it. Bitcoin still remains the foundation of much of the crypto market, which moves in tandem with it.
Bitcoin is a peer-to-peer online currency, meaning that all transactions happen directly between equal, independent network participants, without the need for any intermediary to permit or facilitate them. Bitcoin was created to allow “online payments to be sent directly from one party to another without going through a financial institution.”
In the financial transactions sphere, we have various modes of payment for goods and services. For example, we have PayPal, Amazon Pay, Apple Pay, cryptocurrency, etc.
Cryptocurrency is a relatively new system that people still try to figure out. There are currently over 2,000 types of cryptocurrency.
Ethereum is a “world computer”: It lets people build apps & products with money baked into the code. If you believe that web3 is going to continue to grow, then you likely believe that over time,
Ethereum will become the “settlement layer” of the internet: All sorts of transactions (whether on-chain or even Visa) will turn to Ethereum to exchange funds and keep secure, immutable records.
Owning ETH is like owning shares on the internet. Demand for ETH will go up with increased web3 adoption, while upcoming changes will decrease the supply of ETH and let more value accrue to holders.
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