As bitcoin gets closer to its 21-million-unit limit, enthusiasts say buying the cryptocurrency will gradually become much harder, making it more valuable. Others say it will stop being decentralized.
Over 16,800,000 BTC have been mined as of January 13. It is impossible to predict when all the 21 million will have been mined. Some are saying that it can be done in five years, others argue that will not happen in the next 100 years, as mining will become more difficult.
Originally, 50 bitcoins were earned as a reward for mining a block. It then dropped to 25 bitcoins, and then to 12.5 bitcoins. In 2020, it will fall to 6.25 bitcoins, making mining unprofitable.
Once all 21 million bitcoins have been mined, supply cannot grow — regardless of growing demand. Some people will lose access to their electronic wallets, making supply even smaller. By contrast, cryptocurrency ripple allows miners to create a maximum of 100 billion tokens.
Blockchain-analysis company Chainalysis has estimated that 2.78 million to 3.79 million bitcoins worth up to $50 billion at current prices have already been lost forever. Bitcoin enthusiasts have said this will result in a rapid surge in prices, to levels of up to $100,000 per token.
Critics say that stockpiles of inactive coins exist, which belong to the mysterious person or group who founded bitcoin – Satoshi Nakamoto. It is possible that these inactive bitcoins will be used to “regulate” the market like fiat money, with Satoshi Nakamoto acting like a central bank.
On Monday, bitcoin was trading at $13,780 – more than 30 percent below its $20,000 record high. Bitcoin has also been losing its dominance in the cryptocurrency market, of which it now holds a 33-percent share – down from the 85 percent it held last year.
Why GBIT for 2018?
The cryptocurrency world is very similar to the stock market and a black hole in space.
It’s getting to the point to where you have to start paying attention to the cryptocurrency market because wealth is being obtained daily with some of the trades being made and more and more people are making long term and short term gains on the currency.
The US economy is strong but the US banking system is very weak and the USD is getting weaker too.
There is no place to put your money with minimal risk to gain wealth, so you are forced to the stock market or bonds to gain wealth. Money combined with compound interest is supposed to outpace a person’s annual salary.
Today that is not true.
The average blue collar worker barely keeps up with the day to day expenses and does not have the money to put towards savings or money for a down payment on a home.
Bitcoin is the most popular and the most expensive coin on the market selling for over $16,000 per coin. Ripple, Bit Coin Cash and Ethereum are all between $2,347 – $238 per coin.
GBIT is structured based on the principles of a central bank banking system with planned forks on 2-14 and 12-12-2018 and is tied to GBIT X, a currency exchange like Coinbase.
The other coins have to be purchased in order to increase your coin count. The planned forks in GBIT give a multiplier of 20 on 2-14 and a multiplier of 5 on 12-21-2018.
Examples: Bitcoin, Ethereum, Lite Coin Bitcoin Cash…..you cannot increase your coin amount unless you purchase more coins. GBIT can be purchased with Bitcoin (BTC) or Ethereum (ETH).
The following example is a representation of how the GBIT forks will work based on the minimum investment of $1,000 for founders coins using the current GBIT price for value.
GBIT founder’s coins are available and can be purchased with a minimum investment of $1,000 @ $20 per coin which in turn gives you 50 coins. They will also be available for purchase from the GBIT website at the current market price of over $300 per coin.
50 coins owned now become 1,000 coins (50 x 20) on 2-14-2018
1,000 coins become 5,000 coins (1,000 x 5) on 12-21-2018
The current price of one GBIT coin as of January 7, 2018 @ 10am is $358.98
(GBIT price is ETH x .33) ETH is the symbol for Ethereum. You can follow the price of ETH on the Coin Base app.
GBIT pricing is based off of the price of Ethereum because both coins have similar Blockchain.
A $1,000 investment now is worth $17,949 based on the current price of 50 GBIT coins. Fifty (50) coins become 1,000 coins (50 x 20) on 2-14-2018 and even if the price of GBIT stays the same, the value of 1,000 coins will be approximately $358,980.
One thousand (1,000) coins become 5,000 coins (1,000 x 5) on 12-21-2018. If the price stays the same your investment is worth approximately $1,794,900. If the coin price drops 50% your coins are worth $897,450. Not bad for a $1,000 investment. Again this is an example of how the GBIT works and returns maybe higher or lower depending on the GBIT price.
The coin price will fluctuate daily just like stocks do.
If you sell your coins and put the money back into your bank account, you will be subject to paying taxes on that money. You are required to pay tax on the returns from cryptocurrency. If you have your returns put back into your bank account, you will be taxed.
If the coin was purchased in Y 2017 and sold in 2017 the tax rate will be 25%. If the coin was purchased in Y 2017 and sold in Y 2018 the tax rate is 15%
To answer any tax questions more accurately, please see your tax advisor.
Note: All illustrations presented are an example of how the GBIT coin can pay off to you as an investor.
Paying taxes correctly is a Key issue a lot of investors have.
It is part of the equation of building wealth and investing. Bitcoin buyers struggle with this everyday trying to figure out how to purchase that nice home, car or take that exotic vacation, or purchase that private jet.
This is why you have to learn how to be wealthy. If you obtain the wealth then learn, you will end up in a worse financial situation like the majority of the instant lottery winners.
The exchange, GBIT X is the coin/currency exchange that created GBIT.
If you sell your coin through the exchange instead of the open market, you can have your funds sent to you via a non-recourse loan which there is no tax liability receiving your funds as a loan.
Take GBIT seriously and if you do not like GBIT, find a currency or other investment vehicle that will help you obtain the wealth and financial freedom that you are looking for.
Before you get started, sit with your husband, wife, boyfriend, girlfriend, kids and or family and figure out what your dreams are. By taking the time to do this, it will tell how much you need to start with.
If you are the only one in your circle figuring this out, it is suggested that you get your family and friends involved so you are not the ones paying for their dreams along with yours. Have fun with GBIT and dream! Working on your dreams is much more fun than working to just pay bills.
14 February, is just 38 days away.
Do not miss out on the 1st fork. Get yourself positioned to catch the 1st fork on Valentine’s Day 2018!