Cryptocurrencies are currently one of the top topics on the radio, television and the internet. The word “bitcoin” is currently one of the most searched phrases in Google.
The picture below perfectly illustrates the slogans people have been searching in 2017 all over the world.
Disruptive 2017 year
The growing interest in Bitcoin is caused by an incredible jump in its value in 2017. However, a large proportion of people probably do not realize that Bitcoin has existed since 2009. At that time, few people were interested in this subject, and those who did it probably invested in this new technology for pure curiosity or for fun. A great example is the history associated with the first purchase in history using Bitcoin. In 2010, a programmer ordered 2 pizzas and paid for them using Bitcoin. It cost him 10,000 BTC. At that time it was the equivalent of about $30, because 1 BTC cost a fraction of one cent. No one then appreciated the potential of Bitcoin and cryptocurrency, and the fact that the price could increase in the future. As it turned out, if this programmer had kept his Bitcoins for several years, he would have made a fortune. Probably he would not have managed to keep such a sum up to the present day, but if he did it, he would have nearly 140 million dollars today! Therefore, one can say that the pizzas he paid for were the most expensive pizzas in the world.
Since 2009, the cryptocurrency market has developed tremendously
We started with one single cryptocurrency, and now there are over 1000 different cryptocurrencies. Of course, only a small part of all cryptocurrencies on the market has some useful value. Most of them are worthless tokens.
A year ago, the price of one Bitcoin was about $1,000. At the peak moment in 2017, the price for one Bitcoin exceeded $20,000. It is a 20-time increase in value within one year. This situation has never happened before. Below is a chart of Bitcoin’s price over the years.
The red line shows January 2017. From that moment on, the price for 1 Bitcoin went up heavily.
In addition, in 2017 many other cryptocurrencies, such as Ethereum, Dash or even Neo, have recorded amazing increases. By investing in cryptocurrencies in 2017, you could multiply your capital several hundred times. The capitalization of the entire cryptocurrency market has increased several dozen times and now amounts to approximately 550 billion dollars. In general, the entire market has accelerated due to the growing interest in cryptocurrencies in the world. What is more, people also extract cryptocurrencies in their own homes, using special devices called “excavators”. The excavator is a special mining hardware to mine cryptocurrencies. That is why graphics cards, which are used in such excavators, have also become much more expensive.
Will the bubble blow up soon?
It would seem that this whole bitcoin and cryptocurrency boom is a purely speculative bubble, and many people say that as quickly as cryptocurrencies have gained value, they will lose it so quickly as well. But, is it true?
Few years ago no one was interested in cryptocurrencies and Blockchain technology. Today, it is more often possible to pay with cryptocurrencies. You can do it on the internet and at points in many countries around the world. This year, Japan and Australia officially announced Bitcoin as a currency and their legal means of payment. Also, there are being opened many companies that want to use the Blockchain technology. There are more and more jobs related to the subject of Blockchain, and even university specializations. The world is changing and going forward. When the internet was being created, then only a handful of people in the world saw any sense in it. Most did not know what it was and what it would serve. Why sending an email when there is a post? Why writing via a messenger when we have telephones? However, today no one can imagine life without the internet. More than a half of mankind uses it every day.
Now we have another innovation in the history of the world, and perhaps another technological and financial revolution. This revolution is cryptocurrency and this is the future.
Why are cryptocurrencies so special?
- cryptocurrencies are decentralized (unlike banks they do not have a central unit that manages them),
- they have limited supply and cannot be printed (they resemble gold, the resources of which are also limited),
- possession and transfers of cryptocurrencies are anonymous,
- very fast transfers from one end of the world to another, without intermediaries, relatively low commissions.
These are just some of the advantages that cryptocurrencies offer us. There are many more.
Many famous millionaires and large institutions invest in cryptocurrencies because they believe that this is the future. For example, such people as Roger Ver, Tim Draper, Richard Branson, and also some of the largest banks in the
world – Goldman Sachs or JP Morgan. Many people from the world of sports, as well as celebrities, also invest in this technology. Some time ago, the well-known millionaire John McAfee wrote on Twitter the hypothesis that Bitcoin will reach the value of 1 million dollars by 2020.
Of course, this is only a hypothesis, but at the current rate of development it does not seem to be exaggerated at all. The main problem that Bitcoin has is that it is too slow for this moment and large fees are charged for transactions. There are many other cryptocurrencies, which are a great alternative to Bitcoin and are much more technologically advanced than it. Perhaps they will replace Bitcoin one day, which will stop being so popular because of its flaws?
Where are we really?
How much money is there in the world? It is estimated that more than 80 trillion dollars is in circulation (taking into account only money in physical form and on bank accounts, deposits, etc.). The cryptocurrency market is currently worth around 550 billion dollars. This means that it represents only 0.7% of the total amount of money in the world!
What is more, it is estimated that about 10 million people around the world have cryptocurrencies. That’s less than 0.2% of the total Earth’s population!
What does all this mean?
This means that on a global scale, the cryptocurrency market is worth approximately zero. Only a fraction of people around the world invest in cryptocurrencies, so we are only at the beginning of this path. This market is just beginning to develop. The picture below perfectly presents it.
The world is moving towards automation and digitization, which is why in some time we will probably leave paper money, which may be replaced by cryptocurrencies. Further growth of this market, bearing in mind the limited supply of cryptocurrencies, is practically inevitable.
Bitcoin’s growth implies the growth of alternative cryptocurrencies. Therefore, projects that are just starting and developing, like FuturoCoin, are a real treat for investors, because over months or years you can really earn a lot of money on cryptocurrencies. Of course, you have to be aware of the risks involved in investing in cryptocurrencies, but observing the trend and the direction in which it all goes, the investment option seems to be extremely tempting …