BitDegree
So, you’ve heard about Bitcoin and you want to invest…
You’re not the only one! Bitcoin has been one of the best investments you could have made in the last 5 years. People are still using it to make a lot of money, in many different ways.
In this guide, I will teach you the history of Bitcoin, the future of Bitcoin and how to understand what goes into a Bitcoin price prediction. We will look at predictions for different years, including this year — the Bitcoin price prediction 2018. I will answer the questions that are on everybody’s minds, like “Will Bitcoin crash?” and “Why is Bitcoin rising?”.
Understanding how to predict and invest is the first step to building a successful portfolio. However, with all investments, there are risks involved. So, you should always speak to a financial advisor before making any major decisions.
Note: Your portfolio is your investments. For example, if you were to invest in Bitcoin, Ethereum and Litecoin, then those coins are in your portfolio.
Quora.com
Anonymous
Answered Dec 7, 2017
Bitcoin is a token. it is like poker chip or game token that has no inherent value. however, like in poker, you can decide whether a particular color chip will be $1 or $5 or $100. Now for simplicity sake, assume all chips are same color BUT there are only limited chip in the game. (table bets only). Not all chips are yet in the game (some are still being ‘mined’).
Now if you want in the game, you need to buy poker chips. since they are in limited supply, you offer say $1.1 to an existing player to give up some of his $1 chips to you. further someone else too wanted to join the same game. Now you asked for $1.2 and the new player was willing to pay that, to get into the game. so the market value of chips in now $1.2 However, do remember that game is still being played in chips only and unless you can buy something worth $1.2 (the poker bank?) for those chips, you are really hoping just to win big so that you extra $0.2 is set off.
Now the real question is why would you want in, in this game. Bitcoins are unregulated, global tokens. They are not (at least not yet) controlled by governments. that leaves the power to decide its market value in the hands of coin users, pretty much like barter system. e.g. I will give you 1 loaf of bread for one bit coin (to hell with whether it is worth $1 or $1.5). I will then use that one bit coin to buy flour and other things required to make bread. The prices are truly controlled by users and not the administration. There is no one to increase liquidity or suck up liquidity and control the price of currency. Pretty much like gold, only online! Before fiat currency when gold coins were actually in use, administration didn’t really control that much of economy as it does today. you had your gold in your pocket and went to buy the bread. govt couldn’t really suck up the supply of gold to reduce liquidity (with no gold, people would just adopt another substance to do trade with. just like sea shells, copper, black pepper.. all these have been used as currencies at one point). The edge here is that no one can really pick you pocket for gold. (that is where the blockchain comes in. But that’s a different story). You coins are safe in blockchain. Case in point, bitcoins have been used for regular commerce in Venezuela and a few more countries facing currency crisis. as they do have real world application, one might want to own some.
BITCOIN’s price rocketed by $1,000 in just 30 minutes today, resulting in the cryptocurrency reaching the $8,000 mark for the first time in weeks. But why is BTC rising and will it surge past $8k?
By KAT HOPPS
