Bitcoin has grown tremendously since its invention in 2008, turning it into a viable investment made by famous billionaire investors, institutions, and retail investors.
What will happen to the future of Bitcoin, which has reached record levels and has become one of the hot topics of global finance, and the other cryptocurrencies that come after it? We will analyze it in detail in our article.
Bitcoin, which traded around $ 4,000 in March 2020, exceeded $ 40,000 in the first days of the new year.
If you are an investor who invests in crypto coins, especially if you are a short-termist, you can break away from the revolutionary power of crypto coins. You follow the buying of institutions for the increase of bitcoin, defi and updates for ethereum. These are enough for the prices. In terms of fundamental analysis, the use and supply of crypto gives good results when investing. But take a step back and look at what cryptocurrencies are? When we look at why it has more value than more price, you can be a little fascinated. First of all, why do cryptocurrencies have value? Let’s explain why only 1 Bitcoin is priced above $ 50,000.
First, let’s answer why a person would demand Bitcoin without looking at whether a Bitcoin is worth $ 50,000 or $ 10,000 or $ 300,000. When Bitcoin first came out, it was described as a means of payment and shown as a competitor to virtual means of payment. The virtual statement here is important because you do not need a 3rd institution when you pay physically. If the central bank signature on the banknotes is the 3rd party for you, this trade need can be met by barter, that is, the exchange of goods. However, paper money can also be used as an intermediary for payments here. Because paper money is not so volatile in terms of value during the realization of trade. It is a competitor as a virtual payment tool because in fact this transfer is not between you and the person you are trading with, but through a 3rd institution. Banks or payment instruments are certain institutions that depend on transfers. These institutions, which are controlled by the state with various regulations, may be limited in countries that have not completed their development or in payments between countries. In terms of our country and developed countries, Bitcoin is unlikely to
be in demand as a means of payment
, but every person who does not have access to the financial system but has the internet now has access to the financial system. Blockchain technology can be realized quickly and cheaply, including in small transfers without intermediaries. Although this power seems to have decreased due to the intense interest in the recent period, it is developed by independent programmers every day and is still cheaper and faster than traditional methods. But the real power of Bitcoin today is not that it is an intermediary in payments. It’s a very powerful store of value.
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Bitcoin, whose supply is stable and stable regardless of the interest of an institution, is becoming more and more resistant to the economic course. Bitcoin, which is still volatile today, has started to be preferred by companies. Although this has a small advertising effect, the main reason is that companies with cash surpluses want to protect the value of their money. Central Banks are no longer so satisfied with the value of their own currencies but also because they have financial stability goals, so one side may not be so happy with the decisions made. Or the central banks of some countries may make the wrong decisions. The 2008 crisis was the event that started in 2004 with the increase in interest rates, but also with the fact that borrowing was too much, and at the end of the day it affected unrelated people and triggered the exit of Bitcoin. It is difficult today to say here that Bitcoin will be resistant to all these situations. When the cash in your pocket is in danger, we see that the effects like March 12 continue. However, it is a fact that Bitcoin is independent. And it is destined to become the most important store of value of the future. Because as the internet evolves, as our lives go virtual, we will need valuable tools in the virtual. 1 Expressions with satoshi, not as Bitcoin, can become even more common. Okay, I’ve expressed why Bitcoin is valuable, which is what it is a candidate for in this case.
So why is Ethereum valuable? What is the value of AVAX? LINK? FTM? They all have different value propositions. What they all do is written in detail on our site. But these articles analyzes are like a race within the cryptos themselves. Here’s what actually happened; The candidates for the New Financial Order are these coins.
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The financial market has developed very quickly, but with the development of the internet, it is not valid for Turkey in some countries has not been able to keep up with this speed. Today, on this path opened by bitcoin, it can be borrowed as bitcoin. Using customized blockchains on the Avalanche network (which can be a legal contract or ownership of a property), borrowing and issuing can be tied to various rules. Crypto coins, whose potentials are sold now, are the financial system of the future. If we leave Bitcoin out, which alone can create a value proposition and move forward with it, the total value of the alt coins today is worth $ 700 billion. The figure may sound big, but 8 763 cryptocurrencies make up this value. The value of America’s two banks is greater than that. In addition, the assets of banks in America are around $ 24 trillion. Crypto coins have become very valuable in this period. But crypto coins can meet people’s need for more democratic and accessible finance. The biggest risk for a structure so adapted to virtual is that these are technologies. So Ethereum may not be the largest financial infrastructure forever. This shows that there can always be opportunities for traders, even if market growth slows.
