July 7, 2017
Bitcoin key facts – and why it has genuine underlying value
Value increase in the first seven years: a million times
No. of transactions per year is now:
No. of transactions per second: 7
No. of bitcoins generated per day: 1800 (till 2020, when it will slow down)
Countries in which bitcoin is fully regulated: Japan
WHAT GIVES IT VALUE
the world sees a particular scarcity in a particular asset as well as some utility. Gold for many, many years has held its value. It doesn’t rust, and so people have seen it as a durable store of value. So with bitcoin, nobody is just trying to promise you anything with it. It’s a very scarce digital asset. There are 16.5 million bitcoins in existence. There will only ever be 21 million bitcoins, so it’s scarce. And there is also a great utility.
So right now, if I wanted to send my bitcoins to anyone in the world, I could do that in a matter of minutes, and it would cost me less than US$1 to send that value. So if I wanted to, say, send R10 000 to someone in China right now, if I went through the traditional means of sending that money, some of those channels cost a lot of money. Sometimes 10%, 12% of remittances actually go to the intermediaries along the way, they get captured. [Source]
It is hard to believe people could have bought Bitcoin at US$258.62 two years ago today. Even more astonishing is how Dogecoin was still a top currency at that time.
In August of 2015, Bitcoin was worth US$258.62. Today, that same Bitcoin is worth US$4,328.47.
Dogecoin was the sixth largest cryptocurrency by market cap two years ago. That is almost impossible to comprehend in 2017, as Dogecoin is still a big joke in most people’s opinions.
Ripple, Litecoin, Ethereum, and Dash have all seen massive growth has past two years. Ripple’s market cap almost grew by 3,000%, which is pretty astonishing. Litecoin’s value has gone from US$4 to US$41.27, which is a more than respectable growth as well. Dash has gone from being worth under US$3 to a value of around US$230 this year. A major gain for a currency that most people still ignore to this very day. Ethereum is the big winner in all of this, though. Its market cap went from under US$100m to around US$27bn in just two years. [Source]