Bitcoin– A Cloak to the Real Superhero?
While most crypto fans, enthusiasts, promoters of the decentralized financial system are praising bitcoin and also promoting it as a great form of investment, in reality, it is not the brave hero with a bright torch.
Why Bitcoin is a Cloak
Only 21 Million Bitcoin were created for its entire life. The reason being is to really promote a decentralized financial system that has now sidetracked as a quick-buck market.
The cryptosystem has become like a contender to the stock market. In actuality — the Crypto market cannot ever challenge the traditional stock market.
- The stock market is backed by financial authorities.
- Although stock markets have been called risky many times in the past — The prominent companies are a safer bet for many, who are just wanting to invest long term and expecting safe returns.
- There is too much information about trading which makes it easy to seek help from an expert or can entrust the responsibility to their financial advisors.
The crypto market, on the other hand, is still the most unstudied institution compared to the stock market.
Since the motive of cryptocurrency has been lost.
Let us discuss why Bitcoin is not the real game.
- Limited coins
- Although every institution has allocated a set limit on coins — Bitcoin has already mined most of it.
- Since there is a huge debate on when the last bitcoin will be mined. With crypto geeks suggesting the year 2140 and others speculating the date to be very near. It is possible that there may be a panic when the BTC is almost nearing its end — which may toss BTC at a downward spiral.
Let me expand on point №3
If BTC has mined 20million coins — it is going to create a great panic amongst amateur investors, who have basic to no knowledge about investing and have only invested because of the hype and the promise of great returns.
The sudden dispense of BTC in the crypto exchange will cause havoc in the market.
Bitcoin will last until 2140?
While this is the most debated subject amongst the geeks — and the most neglected subject–in the amateur investor’s mind — It is best to say that Bitcoin is not the real hero in actuality and logically. It has just paved the way to a new idea, a movement, and brought a change in the world that was dulling out.
The real hero in this race could be BTC’s eligible competitors ETH or LTC. While LTC is still debated, ETH has time and again has proved its competency.
BTC VS ETH
Bitcoin became the “Bitcoin” because it was the first to pull a breakthrough innovation — Something unthought of, therefore the “clout” is associated with it and is seen as the bull-runner.
But, ETH, in actuality, is the underdog in terms of both the technology and the volume.
The last mining of BTC is projected to happen in the year 2140 but it could also be early.
Since the BTC is not backed by anything and the prices are determined on the basic economic principle “supply and demand” it is hard to determine what the next second for it would look like.
ETH, on the other hand, based on the same principles of BTC, has rubbed off the imperfections found in BTC and created identical alternative by also implementing more superior technology and plenty of volumes to trade with, though it has conquered the flaws of BTC — This is not backed by anything too.
The main motive behind the cryptocurrency was to replace it with a decentralized financial system — Instead, we have taken it as assets.
Cryptocurrency VS “Cryptoasset”
Like every currency of the world, bitcoin is no different, and its value is determined by supply and demand.
Though the currency backed by the government is determined by a lot of factors, Bitcoin or any other cryptocurrency simply isn’t!
It is safe to say if one needs a safe investment — BTC’s next successors are a safe bet.
Bitcoin The Driving Force
BTC has such a gravitational force — If it falls, every currency value falls — If it soars — Every currency value soars.
This is the reason the crypto market could still be the most volatile market!
Many investors, be it amateurs or experts, are investing in BTC although the value currently is still astronomical at the time of writing this.
ETH and LTC, on the other hand, is still a fraction of BTC’s price.
A Safe Trading
Since there are many materials on the internet on cryptocurrency.
It is purely advised, to be mindful of your investments.
It is better to earn a little than a very big sorry for yourself.
I’m not a financial advisor nor an expert — Just like many — a great admirer and a fan of cryptocurrency and the blockchain technology.
PS: Safe Trading and more profits!
