What are the benefits of Bitcoin investing?
The invention of Bitcoin began a revolution.
Digital money is something that has always been proposed. Bitcoin has validated the proof of concept.
Money was only one part of it. Bitcoin ushered in an innovation-filled market worth multiple trillion dollars.
We will be analyzing Bitcoin in this report to see if it is still a good investment.
Final score: 97/100 for Cryptomix
Here are the results:
31 out of 33 products are functional
A strong community of 33 out of 33
Leadership that's excellent 33 / 33
Product of the day
Bitcoin has one purpose. Money is money. Money fulfills its three purposes well.
The value store
Exchange medium
Accounting unit
A strong store of value. Bitcoin can only exist in a certain amount. The population will never exceed 21 million.
People lose passwords and send to non-existent addresses, thereby drastically reducing circulating supplies.
According to Decrypt, just under 4 million Bitcoins have been lost forever.
There is no doubt that bitcoin is a popular means of exchange. You can create and use a Bitcoin wallet in a matter of minutes.
Especially in comparison with traditional banks.
A few months ago, El Salvador announced that Bitcoin will become legal tender in early 2021. 21 million citizens are now actively using a Bitcoin wallet. This is in stark contrast to the 18 million people with bank accounts.
In addition to being an account unit, Bitcoin also succeeds as a digital currency. A product or service that can be evaluated based on its value.
Eight decimals are allowed when dividing Bitcoin. Even if it were more, the developers could make that happen easily.
However, Bitcoin currently struggles as a stable unit of account. I expect that will happen soon.
It is difficult to compare bitcoins with US dollars or Euros due to their volatility.
A good example is a Bitcoin user buying pizza in the early days. Using 10000 BTC, he spent money on it. A bitcoin of that value would be worth millions today.
This problem can only be solved by widespread adoption. Everyone would use Bitcoin natively, which would keep the price stable.
The price is too volatile, however, to be used as a unit of account at the moment. Thus, money.
The momentum of adoption will drive merchants to measure first in US dollars (or their preferred fiat currency) and then Bitcoin.
Scalability and decentralization
A second problem with Bitcoin is its inability to effectively scale. There are thus fewer possible transactions.
There are approximately 10 million Bitcoin transactions per month.
Solution proposals abound. Often, they are associated with centralization. The decentralization philosophy of Bitcoin has been abandoned.
The technology cannot scale and remain decentralized at the same time.
We have two options from here.
A scalable decentralization infrastructure is built on top of Bitcoin.
Bitcoin is rendered ineffective by a competitor's technological innovation.
First, the Bitcoin ecosystem is growing, making the first scenario more likely. Projects such as the Lightning Network come to mind.
Two plausible scenarios are possible, but unlikely. Bitcoin is over ten years old. Bitcoin has not been dethroned yet by a competitor, which is a good sign.
It would be profitable for people to create a better Bitcoin, since they would make billions of dollars. Nobody has succeeded despite strong financial incentives.
Technologically, this is not possible. It is funny how innovation can surprise everyone. We should not ignore this possibility.
Bitcoin has a good chance of replacing the monetary system in some way. Even most bankers agree.
In summary, Bitcoin has a useful feature. It's not scalable, but will be in time.
Work product score: 31/33
Communal activity
In the cryptocurrency industry, Bitcoin has the first mover advantage. Due to its popularity, market capitalization, adoption, and recognition by the public, it has the largest market share.
Among all cryptocurrencies, Bitcoin has the largest community. As a result, there are several subcommunities. Their cultural and linguistic diversity makes them unique.
It is the essence of Bitcoins philosophy. No single authority has authority over everything. From the Mongolian countryside to Latin American legislators. Many people believe Bitcoin is real.
Cryptocurrency adoption will continue to grow, and Bitcoins community will follow suit.
The Bitcoin community is growing and will continue to do so for a long time
Community score: 33 out of 33
Leadership is a must
With Bitcoin, we are creating a decentralized monetary system. It would be harmful to have only one person overseeing all aspects of the project.
He would be Satoshi Nakamoto, if there were one. However, it is not known who it is at the moment. Inactive since years, their Bitcoin wallet has fallen into disuse. It's unlikely that they'll ever become famous.
All of Satoshi Nakamoto's actions were executed perfectly.
The best scenario for Bitcoin is not to have a public face. As a community, we lead ourselves.
In the end, Bitcoin is independent of any mediator. Cryptocurrency speaks for itself.
Projects that lack leadership will usually fail. Bitcoin is great precisely because of this.
The best option for Bitcoin is to have no leader.
Having good leadership: 33 / 33
A few final thoughts
Bitcoin is the leading cryptocurrency. By any measure, it thrives. There is no way to stop it.
The factors listed above make it an excellent investment.
A final score of 97/100 was achieved by Cryptonomix