First, one quote must be made about Bitcoins: The fact that it records every transaction makes the Bitcoin database gigantic, with less than 14 years of existence. That is mathematical proof that only one corporation in the World will be able to handle the computing power it will require to exist in the medium-term future. Bitcoin miners can no longer work from home. Computing power is increasing drastically among fewer and fewer corporations to enable miners to generate new Bitcoins. This will not end until one corporation wins it all. Countries like China are cutting electrical energy because of the computing power already consumed by the ever-increasing supercomputing energy required to mine Bitcoins.
What is a Bitcoin, and how it works
Bitcoin is a cryptocurrency created in January 2009, and it is worth money: One Bitcoin today is worth about 30 thousand US dollars. The technology behind Bitcoins is poorly designed. A powerful home computer takes about two weeks to download the entire database of Bitcoin transactions it records. This is called Blockchain, and only the fact that it is an ever-growing database already tells you it is poorly designed and why it will require ever-increasing computing power to increase the number of Bitcoins. I explain in further detail why: To create new Bitcoins, they must be mined, which means for every new Bitcoin, a super algorithm must be designed so that the transaction can not be decrypted, which is the basis of the technology. So, it is a no-brainer: More computing power, fewer and fewer corporations in the game of making new Bitcoins until it ends up in the hands of whoever wins. Plus, it will forever be further and further away from the general customer as it almost already is.
Bitcoin is bound to be a monopoly. It wastes billions of dollars in computing power. Some bet on its future, and others argue it will eventually be dropped. Some banks already do not work with it anymore, while others invest heavily in it.
Should I invest in Bitcoins?
I am not an expert, much less an economist, but I undoubtedly wouldn’t due to its poor design and the money waste it is already causing with 14 years of existence. Bitcoin is predicted to skyrocket in value in the next ten years but in the meanwhile, it will be mined by fewer and fewer corporations moving towards a monopoly. Nobody predicts its future beyond ten years. I know monopolies are bad for the economy, and Bitcoin mining will become one.
What should I do with my Bitcoins?
Bitcoin gave rise to cryptocurrencies which are numbered in more than 20000 nowadays and worth 823 billion dollars. Bitcoin is predicted to skyrocket so you should keep them or negotiate them I goods and services since it is worldwide accepted. In the medium to long run, I am not entitled to tell you what you should do with them but about ten years from now; you should keep a close eye on their tendencies since I do not know the reflections Bitcoin worth will have once it becomes a monopoly. It is already an oligarchy.
As I have mentioned, I am not an economist or expert on cryptocurrencies, but the pathway I have described for Bitcoins is highly predictable for anyone who understands how weak and poorly designed the technology is. Every transaction is unique and done through a new algorithm. Each time the algorithm must get more complex. It is foreseeable that it will become a monopoly because it will end up in the hands of those with more money to spend on computing power to generate new Bitcoins. That is as far as I can tell.
14 years of existence already in the hands of few and away from the regular person, not to mention it is increasing the electrical bill of countries to give you an idea of the computer power used on mining Bitcoins.
Alessandro Ferri
Some might be optimistic that its value is skyrocketing as of now, but this race is fast, and the number of players is decreasing fast as well. For a currency created 14 years ago, the near future looks very bright for Bitcoins, but we should look at a different picture in ten years. It will become a monopoly, but how this will affect its value, I can not tell.
This is quite a polished side project! Love the onboarding too. Is there a way to preview a newsletter before actually publishing it?
Thanks!
Thanks, good to hear! Yes you can, if you click “next” on top of your current issue, it will then give you an option to send a preview.