NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other ute-strohner.de at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies. We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies. Dec 19, · Because there's less bitcoin coming into circulation now, the price of bitcoin could go up if demand remains constant. A surprising development this . Jan 04, · While the Bitcoin price was on the decline for the second half of , the reality is the crypto asset still roughly doubled in value over the course of the entire year. In fact, there were only Author: Kyle Torpey.
Is bitcoin going upBitcoin at $, in ? Outrageous to some, a no-brainer for backers | Reuters
To me, if people were going to build upon existing blockchain technology, Ethereum is surely among the top candidates. Many businesses already see the value of using blockchain technology. And some, like DocuSign , are already building upon the Ethereum blockchain. To execute a transaction on the blockchain, you're charged a fee in Ether. As more real-world applications are powered by the Ethereum blockchain, there will likely be an increasing demand for Ether to make it run.
Bitcoin has less utility than Ethereum, but that hasn't stopped it from maintaining its title as the most valuable cryptocurrency in the world. Some believe it could become a one-world currency, creating extremely high demand. But to me, that sounds far-fetched. People don't seem to be using bitcoin for transactions but rather as a growth investment or as a digital store of value.
In my opinion, bitcoin's demand as a store of value is far less than what it would be as a currency or some other everyday utility. That said, bitcoin's upside could still be great given its supply is far more limited than that of Ether. Consider there can only ever be 21 million bitcoin tokens. By contrast, Ether and many others have no ultimate ceiling. Ether has annual mining limits, which keeps new supply somewhat in check. But bitcoin's mining process is even more limited.
Every time there's a transaction on the bitcoin network, decentralized computers process it and the fastest computer is rewarded with new bitcoin tokens. However, every few years the bitcoin reward is cut in half, most recently in May. This means miners are rewarded with 6. Because there's less bitcoin coming into circulation now, the price of bitcoin could go up if demand remains constant. A surprising development this year is new demand is suddenly pouring in from corporate entities.
For example, Square just bought over 4, bitcoin tokens. After considering the issue of supply and demand, here's my cryptocurrency investing thesis: Both bitcoin and Ether have high chances of being used in the future. And their supplies are limited enough to send the value of these tokens higher as demand surges. I believe that applies as much today as it did when I bought bitcoin and Ether in When I bought, I committed to holding for at least five years.
I made that commitment because, with two very speculative investments, I recognize this will likely be a volatile ride and I want to ensure I've given enough time for my thesis to play out. However, because this is speculative, I recognize the value of cryptocurrencies could plummet to zero.
Accordingly, I only invested a small amount. And even though it appears my thesis is playing out, I won't consider adding more even as prices rise. Since cryptocurrencies don't have intrinsic value, the risk is simply too asymmetric for me.
If you like the promise of cryptocurrency but don't want the outsized risk, there are other ways to invest in the trend. Specifically, there are stocks benefiting from blockchain technology. This allows you to purchase shares in real businesses generating real revenue from cryptocurrencies, rather than speculating on things outside of your control.
Investing Best Accounts. Stock Market Basics. Stock Market. Industries to Invest In. Getting Started. Planning for Retirement. Retired: What Now? Personal Finance. Credit Cards. About Us. Who Is the Motley Fool? Fool Podcasts. New Ventures. Load More. OWNR Wallet -- a multifunctional, multi-crypto wallet solution has been working on constant upgrades and new features to create a Best Ways to Buy Bitcoin on Crypto.