bitcoin share price isn’t a product, and it is not even a company, it is a thing, an entity so to speak. So can factors that were used to attribute a former bubble be used on a cryptocurrency?
I really don’t think it is that simple. Firstly, let’s reply a question that some individuals are asking which is;
What is bitcoin?
Bitcoin was created by a person or group generally known as Satoshi Nakamoto and it is what’s referred to as a cryptocurrency, it is digital money and is the first peer-to-peer fee network that is decentralised. To be decentralised implies that there is no central authority to manage the entity. A key factor that has attributed to bitcoins success is the truth that it’s totally open.
It uses a technology called blockchain, and a lot of people have been asking the query “What is blockchain?” So allow me to elaborate a bit. The blockchain network is an open ledger that shows each single transaction that’s made, and is incorruptible because there is no such thing as a ‘one’ location where all the records are kept. This prevents any cyber attacker from corrupting the data on the ledger. This is the dream that was thought out from its creator, because the rise of bitcoin and blockchain was created out of the distrust from the banks and monetary establishments throughout the housing crisis of 2008. So the idea that every node (pc) on the network may see and verify each transaction that is being made, brings a couple of form of trust.
Imagine if one million individuals each had a replica of the same directions to build a toy automotive, then someone got here alongside and had completely different directions, they would not be able to build the same car because they’ve totally different instructions. The fact that everybody on the network can see the identical transactions builds robust security defences.
This digital monetary system has opened doorways for a new method to conduct transactions over the Internet. Especially for darkish internet customers who use the cryptocurrency to purchase malicious objects like weapons, drugs and hit-men. The continual use of bitcoin for purchasing items and providers over the internet is what gives it its energy in my opinion.