Bitcoin: Here to stay or gone tomorrow?

The Rise of Bitcoin

In 2010, I was hanging out with my good friend watching CNBC while eating pizza. A story about bitcoin came on the screen, and he began rambling to me about how this would change the world one day. I never paid my friend any mind until December 8, 2017, when bitcoin shot up to $19,651. By November 12, 2021, bitcoin peaked at $64,400. You can imagine how much of an idiot it felt like by this time. I missed a clear shot to being a millionaire by not acting. Let’s really put this into perspective. If I had bought one bitcoin at $400 in 2016 it would have been worth $64,000 dollars in 2021. Not a bad return after 5 years. Now let’s tackle the woolly mammoth in the room. Today, we are back to the 2017 bitcoin price levels around 20K. The question is, how long will the bitcoin blizzard last?

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Word on the Street

There are so many coins floating around that it’s hard to tell the difference if you are well-versed in the crypto world. In fact, Investopedia goes over their top 10 important coins. On Finbold.com, a group of savvy investors believe the price of bitcoin will surge back up to $39,000 by June 30, 2022. Is this wishful thinking, or do they know something we don’t know. A former Coinbase Board Member told Investing.com that he believes the crypto winter will last all through 2022 and 2023 with no growth. Meanwhile, the crypto world seems to be falling apart, with miners unable to pay their margin calls. The adoption of clean energy by big banks also poses a huge threat to the current mining infrastructure.

The Other Coins

Ethereum (ETH) – Ethereum is a programmable blockchain designed to network with many applications. Ethereum is also the coin used to create NFT’s(Non-fungible token). NFT’s can be a digital representation of any type of asset. I currently own some TopShot NFT’s that are basically digital basketball cards.

Solana (SOL) – Solana was created to host decentralized applications. It uses a technology called PoH, which is used to encode trustless passage of time into a ledger. Thus, PoH improves the transaction speed on the blockchain.

Avalanche (AVAX) – Avalanche will is compatible with both, decentralized and autonomous applications. It is a major competitor to Ethereum, providing speed and scalability. It was created to be affordable, fast, and secure. Not only that, but its fee structure is controlled by user governance, unlike Ethereum.

Polygon (MATIC) – Polygon is fully compatible with Ethereum. It allows other altcoins to be compatible with Ethereum blockchain. Polygon is highly dependent on Ethereum in that it is a Layer 2 solution that works on top of the platform.

Binance Coin (BNB) – Binance is the biggest cryptocurrency exchange in the world. You can use this coin to payment travel, entertainment and online services.

KuCoin Token (KCS) – KuCoin is not licensed to operate in the US. It offers over 600 cryptocurrencies. It still has some kinks to work out with so many poor reviews of the coin. However, KuCoin is one of the more affordable currencies with low fees.

Conclusion

Bitcoin is a high speculative asset that is creating so much buzz. The world on the edge of its fit’s its seat trying to predict tomorrow’s outcome. I provide you with some of this information to inform you that there are options, and some actually look more promising than Bitcoin. There is also stable coin, which is backed by some form of collateral asset. Please into all of these before you start going all in on crypto.

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Citations

Crawley, J. (2022, June 29). Three Arrows Capital Liquidation Ordered in British Virgin Islands. Coindesk.Com. https://www.coindesk.com/business/2022/06/29/three-arrows-capital-liquidation-ordered-in-british-virgin-isles-report/


Major, J. (2022, June 21). Crypto community with 80% historical accuracy sets Bitcoin price for June 30, 2022. Finbold. https://finbold.com/crypto-community-with-80-historical-accuracy-sets-bitcoin-price-for-june-30-2022/

10 Important Cryptocurrencies Other Than Bitcoin. (2022, June 9). Investopedia. https://www.investopedia.com/tech/most-important-cryptocurrencies-other-than-bitcoin/

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