Bitcoin: A Good Investment.
Bitcoin ignited a revolution.
It's always been a dream to have digital money. It was verified by Bitcoin.
Nevertheless, it wasn't just about money. With bitcoin, a multi trillion dollar market was created that was filled with innovation and creativity.
In this report, we will examine if Bitcoin is still a good investment.
Final score on the Cryptonomix: 97 / 100
Report your results:
31 / 33 for Functional Product
Community 33 / 33
I'm proud of your leadership 33 / 33
Product/Working Product
The Bitcoin project has a single purpose. The state of being money. A money system fulfills all three functions of a monetary system well.
Value store
Taking part in an exchange
Accounting unit
The store of value is strong. Bitcoin's number has a limit. More than 21 million will never exist.
Losing passwords and sending to nonexistent addresses causes the circulation supply to shrink.
Decrypt estimates that just under four million Bitcoins are going away forever.
There is no doubt that bitcoin is a popular means of exchange. You can easily create a Bitcoin wallet and start using it right away.
The contrast between traditional banks is particularly striking.
In less than six months, 21 million Salvadoreans used Bitcoin wallets. El Salvador will recognize Bitcoin as legal tender in early 2021. This is in stark contrast to the 18 million people with bank accounts.
In addition to being a unit of account, Bitcoin has also proven to be successful. It is the process of measuring the value of a product or service.
There are eight decimal places in Bitcoin. Even if it were more, the developers could make that happen easily.
In the current environment, Bitcoin struggles to be a stable unit of account. It is likely to happen in the near future.
As a currency, bitcoins are volatile compared with dollars or euros.
Pizza purchases made by early Bitcoin users are the best examples. He invested 10000 BTC in it. Those same two bitcoins are worth millions today.
Only widespread adoption can solve this problem. Using Bitcoin natively would stabilize the price.
Due to its volatility, the price cannot be used as a unit of account at present. Therefore, money.
The merchants that adopt Bitcoin will initially measure in US dollars (or their preferred fiat currency) and then in bitcoin.
The Decentralization & Scalability of
Bitcoin is also unable to effectively scale. Thus, a limited number of transactions can be made.
A bitcoin transaction cap of ten million per month applies to bitcoin.
Solutions to the problem have been proposed in many ways. Their centralization, however, is common. A departure from Bitcoin's decentralization philosophy.
While scaling, the tech cannot stay decentralized.
We have two options from here.
A scalable decentralization infrastructure is built on top of Bitcoin.
A competitor invents a technology that renders bitcoin useless.
As Bitcoin grows, the first scenario appears more likely. I think of projects such as Lightning Network.
This is an unlikely scenario, but it is possible. Bitcoin has been around for over a decade. The fact that Bitcoin has not been overthrown by a competitor says something important.
Billionaire developers could achieve the same results if a better Bitcoin were created. Even with strong financial incentives, nobody has succeeded.
Technologically, this is not possible. Innovation, however, surprises everyone in a funny way. Our list should not be closed off with this possibility.
It's clear that Bitcoin is on track to replace the current monetary system. Bankers generally agree on this point as well.
There is a functioning product with Bitcoins. However, it can be scaled in time.
Score: 31 / 33
Community involvement
As the first cryptocurrency, bitcoin has an edge over its rivals. Therefore, it has the largest market capitalization, most adoption, and most public recognition.
Among all cryptocurrencies, Bitcoin has the largest community. It has so many subcommunities that each has its own culture. They come from various cultures, countries, and languages.
The Bitcoin philosophy can be summed up here. As such, there is no central authority. The Mongolian countryside and Latin American elected officials. Bitcoin is trusted by millions.
As cryptocurrency adoption increases, the Bitcoin community will grow along with it.
For the foreseeable future, the Bitcoin community will flourish and grow
Score for the active community: 33 / 33
Leadership that works
Decentralizing Bitcoins is the goal of the currency. A single person alone would undermine everything.
A leader would be Satoshi Nakamoto, if there were one. The identity of the person is currently unknown. They haven't used their Bitcoin wallet in years. It's unlikely that they'll ever become famous.
Everything was executed perfectly by Satoshi Nakamoto.
The best scenario for Bitcoin is not to have a public face. Leaders in the community lead themselves.
The bottom line is that Bitcoin doesn't need anyone to speak for it. In Bitcoin's case, everything is clear.
A lack of leadership would lead to most projects failing. Bitcoin's greatness lies in precisely that.
It is not the best option to follow a leader in Bitcoin.
Leadership score: 33 / 33
Conclusions
Market leader Bitcoin is a digital currency. Any measure you use will show it thrives. The trend is unstoppable.
Its benefits make it a great investment.
Final score for Criptonomix: 97/100