Bitcoin was just a pilot test for the cryptocurrency market. Eventually other cryptos will take out bitcoin. This is no saying that bitcoin will be a loser but the trailblazing that represented so much risk for early bitcoin investors is absent for today's crypto investor. Bitcoin will rise but will continue to lose marketcap to other cryptos. It seems bitcoins only advantage now is that it can be easily exhanged for fiat. Once this barrier is overcome by other cryptos bitcoin will lose its crypto advantage, trade like other coins, and prices will only reflect supply and demand fundamentals which in bitcoins case is relatively strong.
In any market analysis it is necessary to determine supply and demand fundamentals. Although these change very rapidly in the short term, the long term supply of cryptocurrency is much more reliable than the precursors of cryptocurrency which include credit card transactions using unbacked fiat currencies which are manipulated by a transnational banking cartel composed of interconnected central banks owned by powerful corporate interests. Cryptocurrency is either mined (inflation) or fixed in quantity.
For central banks, creating fiat is as easy as typing zeros on a keypad. However, for cryptocurrency, it must be mined using computer resources which incur energy costs. Even though there is inflation in many cryptocurrencies, including bitcoin, the quantity has an energy cost constraint just as a gold miner could not mine gold profitably if the price drops below cost. This energy cost constraint establishes a price floor for cryptocurrency as long as the currency is able to continue to be viable. Regardless of the energy costs required to mine a cryptocurrency the currency must achieve long term sustainability in order to maintain the credibility of market participants. Bitcoin is the first cryptocurrency to achieve this major obstacle to widespread acceptability.
Now that bitcoin has successfully given investors, traders, savers, speculators, and transaction participants a viable option of storing and transferring value securely and over long distances it has achieved the status as a form of money. It was the bitcoin exchanges that battled with tax authorities and endured years of naysayers and statists using every means of propaganda to discourage its use. Even today with bitcoin making new highs there is hardly a word said on government controlled media in the West such as CNN, FOX, MSN, BBC, etc. They know that keeping lid on cryptocurrency is essential while they scramble for a plan to maintain their old fiat world order of slavery and socialism with the elites enjoying the shelters of offshore foundations and tax havens. It is a fight that cannot be won just as the horse industry could not stop the automobile and guilds of parchment scribes could not stop the printing press. Eventually the resistance will be seen as futile and Al Gore may suddenly declare that not only did he invent the Internet but he is also the real Satoshi. Bitcoin has paved a solid highway and demolished every obstacle that has stood between the public and interest free sound money.
After bitcoin emerged many clones came on the market having little to offer than just being an alternative to bitcoin. As a result these clones were called altcoins. Their only advantage was that they provided a choice to bitcoin. However, many of these new coin releases were designed to take advantage of market enthusiasts who were ready to buy any crytpo thinking they would all be like bitcoin, rising into hundreds of dollars or euros in value. Only a few of these clone currencies such as litecoin continue to be viable today. This was an important testing phase for cryptos to determine whether or not it was a fad or if there was a market structure which could choose winners and losers. Just as fiat currency had winners such as US Dollar and losers such as Zimbabwe Dollars but took decades, crypto went through this phase very quickly.
Unlike fiat currencies which are valuable because a government says so while the population is taxed and their purchasing power is inflated away, modern cryptos have asset backing that previous cryptos lacked. Early cryptos such as litecoin and bitcoin only have transaction feature. Although bitcoin's blockchain is a ledger and can be used for other applications not related to transactions, it is slower than modern blockchains and there has been a decade of advancement since the bitcoin genesis block was mined. Modern cryptos are backed by intangible assets that are just as abstract as the currencies themselves.
The currencies making great advancement today at the expense of bitcoin market share while attracting new savers and investors are forming the infrastructure of the future global economy that does not rely on a single government or manipulated central bank unbacked fiat currency. The IMF's launch of SDRs was a good attempt to introduce a global currency into the world but the IMF was too late in its implementation and lacked the technological expertise and vision to see the power of open source technology and how distributed decentralized systems were beginning to replace centralized inefficient silos of government bureaucracy and corporate largess. Decentralization is a ruthlessly efficient allocator of energy and resources without a government despot or crony deciding which way the money flows.
These decentralized application technologies originating in peer to peer sharing distributed network applications combined with transaction functionality to create the emerging crypto economy of today. It is no longer necessary to have an ebay or amazon where every purchase can be taxed, recorded, and traceable to a bank account empowering large databases which are more likely to be used to consolidate power and oppress. Users of traditional centralized applications also face privacy risks such as when using the CIA's facebook program or NSA's partners Apple, Microsoft, Google, Paltalk, and likely many others. Already government tax authorities have scrambled to monitor and control bitcoin exchanges but are increasingly realizing that it is too late. Eventually, even the exchanges themselves will be on distributed networks with blockchain technology realizing its ultimate circular form, an autonomous economy or artificial intelligence that supersedes the nation states it operates in. It will be accountable to no one but be owned by everyone participating in it.
Steem is a pioneer in this new generation of cryptocurrencies that will overthrow the old world order of centralized silos of shady characters in board rooms deciding the fate of humanity using the levers of money control to reward and oppress. Just as their money power is in the death throes the new economy will absorb the human and financial capital that they so sought to divert into their own pockets through monetary hegemony. With sovereign debt defaults on the horizon it will be impossible to fleece the peasants again in banker bailouts as the new alteconomy has made a solid parallel bridge to economic freedom despite the flailing trolls trying to stop bitcoin exchanges and tax transactions that can be easily obfuscated in the block chain.
Currencies such as steem offer a tangible distributed service as well as a solid currency that exceeds the features of fiat in many ways. Holders of these currencies not only use the services that back the currencies but they become stockholders invested in the future of the new internet economy. Few if any currencies will have the legacy of bitcoin but bitcoin has served its purpose. With the current rise in value of market capitalizations it will not be long before the cryptocurrency total market capitalization exceeds that of the largest corporation in the world. What will prices look like then? The so called bitcoin maximalist believes that all that marketcap will go into bitcoin. Bitcoin will certainly benefit today as it has in the past but as other currencies are accepted and traded for fiat its role will decline in the grand scheme and only tokens that can be used in filesharing, social networking, business management, and computing will become worthy investments.
Today, bitcoins only redeeming feature is its low quantity. Even this will not protect it from the market dynamics in the coming years. Much of bitcoins transaction volume is based on using bitcoin as a vehicle currency. As other currencies become more flexible and join bitcoin by becoming exchangeable for fiat or precious metals they will continue to erode bitcoins market capitalization.
Steem has the potential to eliminate the CIA's facebook program as well as other competing centralized forum and social networking applications. A steem dollar is already worth more than a US dollar as of this writing. What more evidence is there that an entire economy is being built to replace the bankers' choice? It is just the beginning. 3D printers will even make manufacturing a distributed open source event. The world is changing and steemit is ground zero in the battle for the free market and liberty. A person can learn more about government and technology by reading steemit.com in 4 days than they could in a public high school in 4 years. It's over for the statists and socialists but they don't know it yet. It doesn't matter because by the time they figure it out people who got in currencies like steem and etherium early will be making decision for them.
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