Bitcoin nearing crash

How Bitcoin Has Caused Its Own Crash

People love to speculate on the future of bitcoin.

Reuters reported that the chief investment officer of Japan Post Bank said the fair value ‘should be around $100’.

Renowned US financial commentator Jim Rickards tweeted:

Bitcoin could go to $8000, $10,000, or $20,000. It doesn’t matter because it will end up at zero. Neanderthals had their day too.’

Forbes is predicting that the cryptocurrency could hit US$10,000 by Christmas this year.

At the end of the day, only time will tell.

And while it certainly seems like there’s more gas in Bitcoin’s tank, this rise can’t be sustainable.

Companies like Microsoft and PayPal might be accepting Bitcoin, but the long-term applications of the cryptocurrency aren’t realistic.

Another Forbes article expressed the flaws…way back in 2013.

A finite currency is not practical in the modern world. And bitcoin knows that. We’ve seen two major forks this year alone. That isn’t even including this month’s failed SegWit2x fork.

But even without forks, if a currency can split into infinite fractions…you can’t call it finite. And that’s what we’re seeing now. 

Currently, the smallest unit of bitcoin is a ‘satoshi’. That’s just one hundred millionth of a full Bitcoin.

And so far, only 2.5 million people worldwide own bitcoin. That’s just .03% of the world’s population.

So, if the world were to mass adopt this ‘finite’ cryptocurrency, it would need to split much further to sustain the population.

And that’s not the only questionable aspect.

A decentralised currency sounds fabulous, but might just be a utopian dream.

Realistically, the developers have some level of control.

And the market around cryptocurrency mining has become a dark corner of this idealistic economy.

A Quartz article recently profiled Bitmain, a China-based company which runs the largest bitcoin mining operation.

And they aren’t the only ones taking advantage of this lucrative mining opportunity. Businesses have been popping up worldwide.

That’s taking the money and the power out of the people’s hands.

Bitcoin might have further to rise. US$10,000 by Christmas might be a realistic goal.

But as an actual global currency, this movement falls short.

And that means the price simply isn’t sustainable.

To find out more about bitcoin and other smaller cryptocurrencies check out Sam Volkering’s Secret Crypto Networkhere.

Brittany Prentice

Brittany Prentice

Brittany Prentice is a skilled writer here at The Australian Tribune. She has a double degree in Literary Studies and Linguistics from Monash University. She has made contributions to language textbooks in Australia, and translation for robotics software in Japan. She has an appetite for sharing big ideas in business, finance, and politics both locally and around the world.

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