Wednesday 3 January 2018

3 bitcoin concepts that everybody need to know (2)

2) The limitation of the bitcoin is the basis of the extreme volatility of the cryptocurrencies.
It is true that new bitcoins are being issued. But first, this is very slow and second, the total number of all the bitcoins is limited to 21 million. That is, the bitcoin is a currency that is limited and can not be increased by printing new coins, unlike traditional currencies.

3) Is the bitcoin a balloon?
According to some bankers, like Jamie Dimon, the bitcoin is a balloon. Given its limited supply, however, it is still not clear. The balloon would burst if, at some point in time, if the bitcoin looses its primary function of storing and increasing the value of investors. That is, if it is regulated, forbidden, or something else bad happens to it.


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