empty
24.01.2022 09:21 AM
Actual BTC value is higher than traders expect, with unlimited growth potential

On Friday, bitcoin continued its decline, breaking the level of $38,000. Many investors, who until recently were enamoured of super profitability of the cryptocurrency market, are now questioning any of its value. So, does bitcoin have value?

Actual BTC value is higher than traders expect, with unlimited growth potential

Currently, the total market capitalization of all cryptocurrencies is over $2 trillion, despite their recent failures.

In 2021, people spent more than $44 billion on non-interchangeable tokens or virtual property rights for digital objects. This sum almost amounted to the total size of the world's art and antiques sales in 2020. The terms "Web 3.0," "token," and "blockchain" have become common to everyone.

This image is no longer relevant

Minus on minus...

Though the first bitcoin was mined 13 years ago, the majority of people believe nothing will change if the crypto industry disappears.

It is common knowledge that the absence of the internet would be a big shock to the world's population.

However, what if cryptocurrency disappeared in 2022? Except for the millennial billionaires with cryptocurrency assets, nobody would probably be concerned about it.

Besides, it is possible to show that cryptocurrency is now at about the same stage as Web 1.0 was in 2004.

There are about 71 million Ethereum addresses and about 40 million bitcoin addresses with non-zero balances. These numbers are in the same order as those of online auction company eBay Inc. in 2004: 56 million active users who bought or sold something that year, and 20 million active accounts in the payment segment, serviced by PayPal, and partly by eBay Inc.

Coinbase Global Inc., the biggest US cryptocurrency exchange, has about 2.8 million monthly active users. E*Trade Financial Corp., one of the first Internet brokers, reported 3 million active brokerage accounts in 2004, while TD AmeriTrade Holding Corp., another company in this field, has 2.6 million brokerage accounts.

The market capitalization of the NASDAQ 100 Index, a mirror of the nascent Internet industry, reached $2.5 trillion in late 2004, like the cryptography today.

However, investors express concern about the fact that blockchain technology has not yet become common. Currently, the number of crypto users is about 200 million people. This figure is too low, compared to more than 1 billion Internet users in December 2004.

In fact, people bought such things as books, plane tickets, and pizza on Web 1.0. 13 years later, only few of them use Web 3.0 to shop.

For example, BitPay, one of the largest processors of cryptocurrency payments, processes about 66,000 transactions a month, compared with Visa's turnover of 17 billion.

This is partly a consequence of the cryptocurrency world's inability to reduce transaction costs, an average of 1.4% for both Bitcoin and Ethereum. According to the World Bank, this is more than the current average cost of an international money transfer to Azerbaijan or Georgia. For example, Wise Plc, a transfer company that does not use cryptocurrency, transfers money for only 0.35%, depending on the currency.

There are probably few advantages to switching from traditional banking to cryptography, except for anonymity related to greater risks.

Moreover, cryptography also has some limits, and the current situation with bitcoin confirms this fact.

Back in 2004, the Internet was the main source of election news for 18% of Americans. However, currently, few people know about blockchain's potential for organizing fair elections of remote voting without voter fraud.

People tend to think that blockchain can be applied only to finance. Moreover, it can be accepted if its performance is better than existing technology.

Many experts believe that the current pace of cryptocurrency adoption is still driven by speculation caused by the Fed's extremely dovish monetary policy.

Despite the traditional financial world's avid interest in new, often profitable crypto assets, it has taken advantage of them so far.

For example, BlackRock Inc. investment in bitcoin futures worth $6.5 million was regarded as a crucial breakthrough. However, this figure is less than what BlackRock had in shares of cybersecurity company McAfee Inc. in the third quarter of 2004.

The argument is often made about the legitimacy of the whole industry. Thus, the Internet companies of 2004 that experienced the dotcom crash, such as Amazon.com Inc. or eBay, were legitimate, though risky investments. Notably, Amazon bonds were priced below investment grade in 2004. As for the dotcom boom itself, the frenzy in regulated markets cannot be compared to current little interest in cryptography.

Some people consider cryptocurrency to be highly confidential, lacking risk to the global financial system. However, at the same time it has no government control. Besides, Web 1.0 embodied the same features.

... gives plus

Nevertheless, cryptography has become an essential part of everyday life, though this fact is not yet obvious.

The major reason for this is the inability to fake the results of decentralized computing.

This possibility opens unique opportunities: elections and lotteries without fraud, unique digital signatures for electronic documents that cannot be forged (there is no need to go to a notary to certify contracts).

The world could change forever due to blockchain technology. Besides, finance is the first sign of the new world order.

It is common knowledge that the real breakthrough for cryptography will occur when people consider it an indispensable part of everyday life, as it was with the Internet in 2004.

However, the industry is currently developing and requires technological breakthroughs, even in areas where blockchain has obvious applications, such as payments or contract creation.

Moreover, statistics or a single event will not be a turning point. Instead, one improvement will be followed by the next one, until the world will be dependent on blockchain.

"What is BTC value?"

What is the BTC value in this system, and what will it be in 10 or 50 years? It has been mentioned many times that bitcoin has a special place even among other altcoins as it is historically the first cryptocurrency.

Currently, the notion of bitcoin's value has changed: its production is becoming too expensive, especially for the planet. It means that its production will stop one day.

Could bitcoin disappear? To exist, computing has to run uninterrupted.

The truth is that bitcoin will not disappear.

At some point, the global community of BTC owners will decide to embody bitcoin in a physical medium, in a coin or rather in an NFT token that can be freely exchanged for their bitcoins for a certain amount of time, just like they do when a new currency is introduced. So, bitcoin will continue to exist as a means of payment and as an art object at the same time. Besides, its value will only increase every year.

Is it advisable to divest bitcoins? I recommend buying them as they have declined. Besides, they will fall for some period, and then they will be super volatile for another five years at most.

Egor Danilov,
Chuyên gia phân tích của InstaForex
© 2007-2025
Chọn khung thời gian
5
phút
15
phút
30
phút
1
giờ
4
ngày
1
ngày
1
tuần
Kiếm lợi nhuận từ những biến đổi giá của tiền điện tử với InstaForex.
Tải MetaTrader 4 và mở giao dịch đầu tiên của bạn.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    THAM GIA CUỘC THI

Các bài báo được đề xuất

Khuyến nghị giao dịch cho thị trường tiền điện tử vào ngày 2 tháng 6

Bất chấp sự điều chỉnh vào cuối tuần trước, Bitcoin và Ethereum một lần nữa cho thấy xu hướng tăng trưởng, mặc dù Ethereum đang tụt lại phía

Miroslaw Bawulski 09:45 2025-06-02 UTC+2

Dự báo Bitcoin cho ngày 2 tháng 6 năm 2025

BitcoinVào cuối tuần, Bitcoin đã hình thành một sự đảo chiều từ các mức hỗ trợ tại mức mục tiêu 102,698 và đường kênh giá màu xanh

Laurie Bailey 04:30 2025-06-02 UTC+2

Các nhà đầu tư tiền điện tử vẫn ngập tràn lạc quan

Mặc dù đang có sự điều chỉnh, tâm lý nhà đầu tư đối với việc mua tài sản tiền điện tử vẫn giữ ở mức tích cực, thể hiện

Jurij Tolin 16:24 2025-05-30 UTC+2

Bạn có biết công ty lợi nhuận cao nhất trong ngành công nghiệp tiền điện tử không?

Mặc dù Bitcoin và Ethereum đã chứng kiến một sự điều chỉnh khá mạnh vào cuối tuần, công ty có lợi nhuận cao nhất trong ngành công nghiệp crypto —

Jakub Novak 16:16 2025-05-30 UTC+2

Khuyến nghị giao dịch cho thị trường tiền điện tử vào ngày 30 tháng 5

Bitcoin và Ethereum tiếp tục điều chỉnh, giảm đáng kể trong suốt ngày hôm qua. Đà giảm tiếp tục kéo dài vào phiên châu Á hôm nay, khi giá Bitcoin

Miroslaw Bawulski 09:29 2025-05-30 UTC+2

Mẹo giao dịch trên thị trường tiền điện tử vào ngày 29 tháng 5 (phiên Bắc Mỹ)

Bitcoin đã thể hiện sự phục hồi khá mạnh mẽ, tăng trở lại trên mức $108,000 và vượt qua ngưỡng $109,000. Biểu đồ dưới

Miroslaw Bawulski 15:46 2025-05-29 UTC+2

Bitcoin phục hồi lên mức $109,000

Bitcoin nhanh chóng phục hồi lên mức $109,000 trong ngày hôm nay. Sự tăng giá nhanh chóng này, đặc biệt là sau khi giảm xuống khoảng $106,600 ngày

Jakub Novak 15:04 2025-05-29 UTC+2

Nhu cầu về Bitcoin không có dấu hiệu giảm xuống

Nhu cầu về Bitcoin một lần nữa đã thể hiện sự kiên cường. Sau khi giá giảm nhẹ dưới mức $107,000, đợt sụt giảm này nhanh chóng được

Jakub Novak 13:38 2025-05-29 UTC+2

Khuyến nghị giao dịch cho thị trường tiền điện tử ngày 29 tháng 5

Bitcoin đang bắt đầu điều chỉnh, và Ethereum cho thấy dấu hiệu mạnh mẽ. Hôm qua, Bitcoin giảm xuống khoảng 107,000 đô la trước khi phục hồi mạnh mẽ —

Miroslaw Bawulski 08:56 2025-05-29 UTC+2

Bitcoin Nổi Lên Từ Bóng Tối Của Phố Wall: Tại Sao Những Tháng Tới Có Thể Mang Tính Quyết Định Cho Thị Trường Tiền Điện Tử

Thông báo rằng Cantor Fitzgerald, một trong những nhà kinh doanh chính lớn nhất ở Mỹ, đang khởi động dịch vụ cho vay có thế chấp bằng Bitcoin đã thay

Ekaterina Kiseleva 00:31 2025-05-29 UTC+2
Không thể nói chuyện ngay bây giờ?
Đặt câu hỏi của bạn trong phần trò chuyện.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.