Bitcoin isn’t a product, and it is not even a company, it’s a thing, an entity so to speak. So can factors that have been used to attribute a former bubble be used on a cryptocurrency?
I really do not think it is that simple. Firstly, let’s reply a question that some people are asking which is;
What’s bitcoin price?
Bitcoin was created by a person or group generally known as Satoshi Nakamoto and it’s what’s known as a cryptocurrency, it’s digital cash and is the primary peer-to-peer payment network that’s decentralised. To be decentralised implies that there is no central authority to control the entity. A key factor that has attributed to bitcoins success is the truth that it’s totally open.
It uses a expertise called blockchain, and lots of people have been asking the question “What’s 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 isn’t any ‘one’ location where all of the records are kept. This prevents any cyber attacker from corrupting the knowledge 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 institutions during the housing disaster of 2008. So the concept that every node (pc) on the network could see and verify each transaction that is being made, brings about a type of trust.
Imagine if one million people each had a duplicate of the identical directions to build a toy automotive, then somebody got here alongside and had different directions, they’d not be able to build the identical automotive because they’ve completely different instructions. The truth that everyone on the network can see the same transactions builds robust security defences.
This digital monetary system has opened doorways for a new technique to conduct transactions over the Internet. Especially for dark internet customers who use the cryptocurrency to purchase malicious gadgets like weapons, medicine and hit-men. The continuous use of bitcoin for buying items and providers over the internet is what provides it its power in my opinion.