There are a lot of business ventures out there that would happily reach 10 and be satisfied that they were still apart of the business landscape. Few actually have a dramatic impact on the business world, especially globally, but that is not the case with Bitcoin which will be reaching its 10th year of existence on October 31 this year.
A Novel Idea Is Turned into a Goldmine
The idea of a digital currency separate from the currencies that countries supply had been floated for years, but it was an article published by Satoshi Nakamoto that helped to bring Bitcoin to the collective conscience of the globe. His white paper, entitled Bitcoin: A Peer-to-Peer Electronic Cash System, put the idea on the map.
He described how bitcoin was being circulated as a digital currency, allowing consumers to be able to purchase items through a currency that they attain five following a set of guidelines that enabled them to be able to mine for coins using complex algorithms. This led to millions of people across the globe seeking to gain access to these coins, place them in their digital wallet, and build a system of assets that became as much a part of their investment strategy as stocks or commodities.
The idea was met with a great deal of skepticism at first, as many investors and currency analysts wondered why a person would purchase a digital currency that had no backing to it whatsoever. It was in the idea of many a “myth” at best. Fool’s gold is how many sought.
An Investment That Has Made Many Rich
As of the last quarter, there was currently $221 billion worth of crypto currency out there in the world, according to the Wall Street Journal. While the currency has seen dramatic ups and downs, reaching a value of $19,000 per coin as recently as this year, it has also seen dramatic fluctuations. That is included seeing that $19,000 value dropped to about $6500 as of this week. In fact, in the last quarter, the value of crypto currencies fell by nearly 13%, losing $34 billion in value.
However, no one can deny the amazing rise of Bitcoin. They can be considered in the same level of success is that of PayPal, Amazon, and Visa. These are three global giants that found themselves with tens of millions of users within a 10 year period of time, and now Bitcoin can make the same kind of claim.
Bitcoin Approaches 10 Years Old and the Future
While the currency continues to have value, there are those who are skeptical of its long-term future. The exchange has continually hacked, causing people to lose their money or for coins to be created that drive the value of the bitcoin down. It is also extremely expensive to be able to mine for coins, as it not only requires a great deal of power to be able to continue to run your computer to access potential coins but requires complex algorithms as well. Something that most consumers cannot afford.
These kinds of challenges have led governments from across the globe to look more thoroughly into all crypto currencies, likely even creating a series of regulations. The New York Attorney General’s office issued a report in September calling for greater protection for consumers as they worry about fraud and other criminal activity. This is likely to have a dramatic impact on the currency, as regulations lead to decreasing value and concern of the entire collapse of the system.
As Bitcoin reaches its 10th birthday, it has come a long way. However, this may be a long year for the cryptocurrency market in general.
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