The Purpose of Cryptocurrency
For many Bitcoin (BTC) is and has always been a mystery.
There is no such thing as a Bitcoin “coin”. It is shown as a coin because that’s a useful analogy. It is an Encryption Key, 1 of roughly 21-M answers to an intricate computer puzzle, that can only exist on a computer supporting the currency’s blockchain
The Big Q: What can you do with it?
The Big A: You can buy an ICO and you can buy pizza with it. The “Bitcoin Pizza,” bought with 10,000 coins in Y 2010, is now worth over $82-M.
It was once assumed you could run away from the law with it, but that’s no longer true, as law enforcement has learned how to break the currency’s supposed anonymity.
The best use of Bitcoin is fleeing a failing economy.
Zimbabwe showed us the way. As that country’s currency collapsed last year people turned to Bitcoin. It worked, not only for those trading the currency, but for the country. Dictator Robert Mugabe was overthrown by his own military.
Recent action in Bitcoin shows you do not have to be a failed state to make use of it.
Consider the Russian Ruble. Its value plummeted early in April, falling from 58 to the USD to over 64 to the USD in a day. This coincides with the latest spike in Bitcoin, from below 6,900 per coin to its 19 April price of over 8,200.
But coins, real and imagined, are not the only stores of value, and assets already live in this world.
All assets including Crude Oil, currency, stocks, bonds, commodities, Bitcoin are in constant competition, and can be compared. It’s a check against the actions of every CEO, and every President. Bitcoin, because it’s invisible, makes this check on power easy to place.
A Bitcoin is worth what someone will pay for it, just as anything is worth only what someone will pay for it. There are often “Bitcoin premiums” when a country’s traders can’t easily meet demand. This happened last year in Zimbabwe and SKorea.
We make these value calculations with currencies all the time, and oil, and stocks. Computers make it easy. In the asset war of all vs. all, Bitcoin is just another player. Its key advantage is its invisibility.
The current value of all the Bitcoin in the world as of 23 July was about $132-B
Currently, Bitcoin is trading at 8,241.42,+71.19, or +0.8713%, as of 2:16a BST, the market is open