Bitcoin needs no introduction, but here’s one anyway. Bitcoin was founded by Satoshi Nakamoto in 2008. It’s the OG cryptocurrency, and remains the largest by market cap to this day. However, there’s still a shocking amount of misunderstanding surrounding the coin. So, here’s what you need to understand about Bitcoin.
- 21 million is all we’ve got
When we say 21 million is the total supply, that’s exactly what we mean. There will never be more Bitcoin than that, not even by one. Bitcoin is not like normal software, where developers could change the code if they wanted to. You can’t change the total supply of Bitcoin, which means that it will get more and more scarce as the years go by. So far, around 85% of all Bitcoin has been mined, but we still have a way to go before we reach total supply. At that point, miners will have to sustain themselves solely on transaction fees, and not on the reward that they receive for mining blocks.
- Fiat and Bitcoin can coexist
Fiat does not need to fade out of existence for Bitcoin to reach its highest highs. Why do we want to push ourselves into a global financial crisis just to see the coin “take over” from fiat? Fiat does not need to die in order for Bitcoin to reach its peak. Just like with stocks and real estate, not everyone will own Bitcoin – but it has become an inherent part of our society, and there’s really no going back.
- Bitcoin is only the first digital settlement layer
When you send a picture to someone on Whatsapp or Telegram, you’re not sending them the actual picture, right? You’re sending them data about the picture’s structure, and then it gets re-structured on the phone of the person that you sent it to. Think of Bitcoin in kind of the same way. The Bitcoin blockchain is really only the first digital settlement layer. You’re not actually sending Bitcoin, you’re sending information about the transaction over the blockchain, and it is verified by miners along the way.
Unlike internet banking, Bitcoin is trustless, extremely secure, and decentralized. It functions all over the world, and allows for cross-border transactions far more seamlessly than traditional banks do. This alone makes Bitcoin incredibly valuable. Whether you’re interested in trading or buying, eToro is a great place to get the ball rolling in joining the decentralized marketplace.
- Bitcoin will reach higher prices than its previous peak
In December 2017, Bitcoin reached $20,089 – the highest price to date. What you need to understand about Bitcoin, is that it will top that eventually. Many analysts are already pointing to Bitcoin reaching a $1 trillion USD market cap following the next bull run, and that could be a lot sooner than you think. There is no limit to the prices that BTC can achieve, and it certainly will surpass $20,089 in the next few years at least.
- There will be no “flippening”
We’re calling it right now – Bitcoin has won the cryptocurrency race. No “flippening” will happen at any point. Yes, Bitcoin has issues with scalability and transaction costs in comparison to other blockchains, but it has also secured the trust and devotion of people that other coins will likely never amass. Bitcoin is known as the cryptocurrency “gold standard”, and it will likely never be surpassed by another coin – that’s just not going to happen. People stick with what they know, and now everyone knows Bitcoin.
JUST IN: @Coinfloor, the U.K.’s longest-running cryptocurrency exchange, plans to delist ether ($ETH) and bitcoin cash ($BCH) next month to focus solely on bitcoin ($BTC).
— CoinDesk (@coindesk) December 17, 2019
Bitcoin is here to stay
What you need to understand about Bitcoin, overall, is that it’s here to stay. Bitcoin has firmly cemented itself as the OG cryptocurrency, that’s captured the trust of the general population, over other (potentially better) coins. With only 21 million BTC, Bitcoin is scarce – and eventually it will peak above 2017 levels and beyond. With many analysts saying that we’re in for one historic bull run in the near future, it’s time to get in (if you haven’t already). Bitcoin is still the largest coin by market cap, and that’s not going to change any time soon. Get it while you still can, because we’re headed for big things.