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Bitcoin Could Become “Worthless”. If you believe in the Bank of England… | by Napoleon

If you believe in the Bank of England, which says be ready to lose everything.

Photo by André François McKenzie on Unsplash

If you have been following the news, Bitcoin is down from its all-time high of $67,549 and is trading below $50,000.

And while we have seen more people owning cryptocurrency and people buying NFTs worth less than 100 dollars but are now worth millions, bitcoin remains the gold standard of what we can say as new money.

Bitcoin’s value is based on speculation, and because people are starting to value it in the same way people in the past put value in gold.

In history, gold has become a commodity that is so valuable that it is at the center of why countries go to war.

Money through the years has evolved from being pegged to gold reserves to the US dollar.

Bitcoin Could Become “Worthless”Photo by Dmitry Demidko on Unsplash

It is believed that pseudonymous Satoshi Nakamoto created Bitcoin in 2009. However, even Bitcoin’s history is filled with urban legend, and Satoshi’s identity remains a mystery.

With almost zero value when it first started in 2009, Bitcoin is worth $2 trillion with over 18 million Bitcoins in circulation and less than 3 million waiting to be “mined.”

Only 21 million Bitcoins can be “mined,” ensuring that once every coin is out, there is no way for new Bitcoins can be made or created.

You can think of it as how we have put value in petrol and gold. But, of course, we all knew how valuable gold and petroleum are because both are limited in the same way Bitcoins are.

They are limited.

In recent years, Bitcoin allowed blockchain technology to grow, other cryptocurrencies have come to life.

During the pandemic, meme coins became popular. Of course, meme coins are nothing, but after a collective of people who believe there is value on these coins that we can’t even see, it gave birth to the likes of dogecoin.

With Elon Musk supporting it, the value of meme coins continues to go up and can now be used for transactions; the value was created by a group of people who chose to believe it has value.

Impressions Create Everything

Alongside the growth of Bitcoin, people are beginning to see how blockchain can be used to create value in digital art, and that is why we have seen the growth of NFT, which means non-fungible tokens, even a tweet from Jack Dorsey is now worth millions.

Others have become millionaires after they believed in apes.

Everything is based on what we put value in, but it has always been like this if we examine our history. For example, art created by the masters during the Renaissance would fetch millions of dollars today.

Art and its monetary value will always be based on perception or how much an art collector or buyer is willing to pay.

Bitcoin Could Become “Worthless”Photo by Pierre Borthiry on Unsplash

What is a Satoshi?

The satoshi is the smallest unit of the bitcoin cryptocurrency. It is named after Satoshi Nakamoto, the creator of the protocol used in blockchains and the bitcoin cryptocurrency. The satoshi to bitcoin ratio is 100 million satoshis to one bitcoin. As of today, 1 SATS = $0.0004812.

In theory, there are 21,000,000 x 100,000,000 satoshis, and if you think about it, Bitcoin isn’t as limited in quantity, but the value depends on its scarcity.

As blockchain is evolving and new cryptocurrencies are created, it is possible that a new standard can overtake Bitcoin in use and adaptability by more people instead of people who are holding on to Bitcoins because they are investors and speculators.

We are already seeing it in NFTs.

In the beginning, ETH or etherium, another cryptocurrency, what the standard. Still, today, we are seeing that other platforms can be used to facilitate the transfer of digital art because blockchain is a technology. Like any technology, it will keep on improving in the same way as the web or the Internet evolved through the years.

Why is the Bank of England telling people that Bitcoin can become worthless because, in theory, it can, especially since any cryptocurrency isn’t tangible, we can only visualize these coins? Still, we can’t hold them or see them?

The scarcity of the crypto asset — which is limited to 21m bitcoin — is among the key reasons for its attraction for investors, but this feature embedded into its design “may even, ultimately, render Bitcoin worthless”. — Thomas Belsham, Bank of England.

Will Bitcoins be one day be worthless, or is this another phase where from here, its value will keep on increasing?

Or what if one day, Bitcoin becomes “old” in the same way assets during the first wave of the Internet are not as valuable as they were first introduced?

What if Bitcoin is just the beginning, new technology will evolve, and people will move towards a better technology?

The future is open to new possibilities, and nobody knows what will happen next to the world of cryptocurrency.

It is no longer as weird as it first appeared in 2009, it can be used for transactions, and blockchain could solve someday problems that remain today, like poverty or the equitable distribution of wealth.

Or Bitcoin can also become the old currency of the past which today are worthless unless you are a collector. Those paper bills from the past don’t have any monetary value.

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What do you think of Bitcoins? Leave your comment below.

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