Too late to invest in Bitcoin? Developer Explains

Too late to invest in Bitcoin? Developer Explains



what is going on flood nation and welcome back for those of you who are new to the channel my name is Eliot I'm an internet product developer and I'm actually building a video game that's going to be using cryptocurrency here on the blockchain and I want to answer this question is it too late to invest in Bitcoin from my perspective as a developer in order to really answer that question we need to go back and start with understanding why people want to own Bitcoin at all now even though I'm a developer I'm not gonna get into the technicals too much I want to explain this as simply as possible Bitcoin has value because it's digital it's here on the computer but it is protected and scarce unlike those mp3 files that you can easily send to your friends or those pictures of those memes that can be copied infinitely and sent around the world the reason why it was so difficult to have digital money before is because someone could hack into whatever computer was keeping track of the money and alter it to say they had way more money than they really did and that would pretty much invalidate the whole system but with Bitcoin it's not so simple instead of just one computer keeping track of how much money everybody has essentially you have millions of computers keeping track of how much money everybody has and until the whole network agrees you cannot make alterations to the ledger essentially if you own a Bitcoin it's yours and no one can take it from you does that explain why it's gone up in price so much not quite so in order to truly address that question we need to look at what bitcoin is doing Bitcoin is essentially a globally recognized store of value or a store of wealth this is very very similar to what we treat gold as to what gold has been used as for really 5000 plus years gold has been recognized as valuable across the world for a very very long time and now bitcoin is challenging that as an international store of value like gold Bitcoin can also be mined as new Bitcoin comes into the world at a steady pace every 10 minutes and it's rewarded to miners or people who contribute computing resources to the network now unlike gold you cannot wear your Bitcoin which is kind of a bummer but someone will figure that out also unlike gold Bitcoin can be broken down into a 100 million pieces called satoshis essentially each Bitcoin has 10 places after the decimal where you can break it down to the smallest increments meaning that even if Bitcoin becomes a million dollars it will still be easy to send a very small amount so you could pay for that cup of coffee or even that stick of gum also unlike gold Bitcoin can be sent across the world in just a few minutes and it can be taken with you to any country in the world without first asking permission to the bank or a government you could take any amount of wealth with you across any border simply on a USB stick or if you have a great memory you could actually memorize your private key in your head also unlike gold we know exactly how many Bitcoin there are in the world there will only ever be 21 million and while new Bitcoin are mined every 10 minutes there will be a limit we have no idea how much gold there is in the world we don't know how scarce gold really is so trading it is a bit speculative whereas we know exactly how many Bitcoin there are in the world in many ways bitcoin is a better Gold digital gold gold 2.0 whatever you want to call it bitcoin is doing what gold wants to do except a lot better gold has a market cap of 7 trillion dollars and Bitcoin has a market cap of just 200 billion which means that Bitcoin could get 35 times larger to just reach the market cap of gold alone and that would mean that each Bitcoin would be valued at 333 thousand dollars today for comparison at the time of recording this bitcoin is valued at just above $12,000 that is a lot of room to grow now currencies occupy a much larger part of the economy than gold the global demand for currency is around 80 trillion dollars that's over 11 times the market cap of gold if bitcoins successful in becoming a global currency it could occupy a price of over 4 million dollars per coin and why would people choose to use Bitcoin over traditional currencies well the answer is simple Bitcoin is limited and run by code whereas traditional currencies are run by governments and printed in mass every year the government prints exorbitant amounts of US dollars so the one guarantee you have is that your US dollars which is really one of the strongest currencies in the world if not the strongest is losing value at an average of two to three percent per year this is a process called inflation that we've come to understand and tolerate as a society but it doesn't mean that there can't be a better way bitcoin is a deflationary currency which means that it is capped and less and less come into the world each and every progressive four-year cycle bitcoin is designed to go up in value whereas the US dollar and other fiat currencies are designed to go down in value you often hear the comparisons to what a jug of milk used to cost two three decades ago or even in your grandparents lifetimes and that has less to do with the value of milk skyrocketing and more to do with the value of your US dollars or whatever currency you're using dramatically losing value like I said is it likely that everyone in the world will start using Bitcoin instead of dollars and yen and great British pounds no but is it possible yes the possibilities that Bitcoin present are really what gives this parabolic jet fuel to its price as much as Bitcoin has gone on an incredible bull run so far in 2017 the biggest financial and technological powers that be are just starting to realize its potential fidelity has just announced their own Bitcoin and cryptocurrency trading desk they are a seven trillion dollar institution JP Morgan is getting into crypto currency with their own coin the intercontinental exchange the parent company of the New York Stock Exchange has announced a project called backt which will have physically delivered Bitcoin futures as well as a payment network that is partnered with Starbucks and other leading corporations that is based on the Bitcoin blockchain not to mention Facebook's new Libre project is designed to have a crypto currency wallet built-in for each and every Facebook user I would bet money that Facebook's a new cryptocurrency wallet that they'll be creating will make it easy for each and every Facebook user to possess send and manage a Bitcoin wallet meaning that each and every person could have their own virtual bank account built right in to their Facebook account this is huge and could spell out a parabolic move for Bitcoin tens of thousands of retailers now accept Bitcoin as payment the biggest banks in the world are hopping on the train and all signs are pointed up for Bitcoin now as far as attention goes this market is red-hot you can see that just based on the daily Bitcoin trading volume exchanges like bit mechs are clocking record 11 billion dollar trading volumes on their exchange alone while bitcoins blockchain on on chain activity is clocking almost 50 billion dollars in daily activity this is absolutely huge one of the exciting parts about this is that the Google Trends data has shown that public interest in Bitcoin is still at a low when compared to the 2017 bull run meaning although things are revving up almost unlike ever before the public still has not taken notice this is still very early by several measures bear in mind we still have not even hit our previous highs of 20,000 and when we do that the news is going to sweep into the mainstream like you've never seen before that would mean that no investor in bitcoins history could have ever lost money had they simply held on to the coin it will become known as the bulletproof asset class once again and we will see a speculative wave of investment interest that I believe has never been seen before and will eclipse any other asset class in history in the past and potentially forever in the future if we break through a 20k Bitcoin we would be an uncharted territory and all the speculation in the world couldn't tell you where we are headed but if history were to repeat itself we would be in for the wildest bull run in the history of the world the history of any asset class past present and future so is it too late to invest in Bitcoin well my opinion is no I believe this bitcoin party is just getting started anyways this is not financial advice I'm not a financial adviser I'm internet product developer I hope you enjoyed this video if you enjoyed the video and it gave you some value please throw a like and leave me a comment in the comment section below if you're not already subscribed to flood TV I encourage you to hit that sub button and click that little Bell notification that way you're made aware whenever I put out new content I'm Ellie O trades you're watching flood TV and I'll see you very very soon on the next episode

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