Digital Asset Future why is 1 BTC worth over $6000 AUD?

Digital Asset Future why is 1 BTC worth over $6000 AUD?

Bitcoin? Ethereum? DASH? Litecoin? Ripple?(devil coin-bullshit-bankcoin), Bitcoin Cash? Monero? etc. are all part of the new ecosystem of digital value transfer, with currencies, stores of value, smart contracts, value tokens and more..

There has been a boom in digital assets and more are coming everyday, how do you determine which will survive & which ones are scams or will die off? It's hard to tell, but there are some key considerations to look at when trying to determine where to invest your money.

Where to start? Easy where it all began;

With Bitcoin. Why? because it is the first, has the longest chain, has proved over time to be the most robust, has the most value tied into it, is a trading pair with all alt coins and has the first mover advantage with the largest network and network effects.

There are other reasons also, having been around the longest the bitcoin blockchain and ecosystem has developed robustness through continuous attack since it's inception. 

It also has the largest vested interest which means it makes economic sense for it to survive.

It is very important to note that Bitcoin is not a currency, it has many of the characteristics of a currency however the time it takes for confirmations and the fees in my opinion preclude it from this class at the moment. Once the Lightning network is built which will allow staking and open channels and near instantaneous micro to macro transactions then it will be a true currency. Till then it is a store of value. The high fees associated with it's value transfer is a part of the ecosystem now and has come about from market forces. The blocks are full, people see that it has a real use case and want in, the price drives up, FOMO starts to occur, more people hear about bitcoin, look into it, understand it's value proposition and catch onto the fact that it's "FIXED total of 21 million ever to be produced" actually means something. 

When Bitcoin initially arrived on the scene it was something that computer nerds and gamer's used as it was novel. However the premise and structure behind it's algorithm was so elegant that only the creator(s) of Bitcoin really understood what was about to hit the world.

When bitcoin hit the globe you could buy one Bitcoin for less than 1cent !

Only those that understood how it worked really believed in it and invested and toyed with it. As time went on the value spiked and fell many times.

 The most significant moment in Bitcoins history really happened in February 10, 2011 on this day it hit parity with the US dollar. The significance of this cannot be overstated as today the Australian dollar is approx 0.73 US dollars.

This is the moment that people from every country in the world that were following it really took notice. From there on till today it has been an exciting ride. People for the first time had a means of global value transfer that was near instantaneous, that was peer to peer without any intermediaries (banks, financial institutions, middlemen or governments).

At this moment people began to realise that this thing had real value. In many countries people saw it as a way of keeping their money safe from corrupt governments, for others it was a way to send value to family around the world without banks skimming and slowing down or regulating the process. Currently financial institutions have become the intermediaries when it comes to money and it's flow around the world, they control who has access and how much they can have. They not only regulate it's flow but also it's value. Bitcoin is regulated outside this system giving it real floating market value. This utility saw uptake of this digital value asset (currency). And people all over the world see it as a means to stay secure outside the system, which is a debt leveraged economy, built out of fictional financial instruments. See the diagram below for a visual understanding of how our current financial system has value.

This system will collapse eventually as most fiat currencies that are backed by faith have. When people say that Bitcoin is backed by nothing too, that is false, Bitcoin is backed by a electricity, thousands and thousands of watts go into calculating it's algorithm which secures each block, nothing actually backs fiat currency.

So the question that we need to ask is;

• has Bitcoin gone up, or 
• have all the other currencies gone down? 

Ans. Bitcoin has gone up, As bitcoin is the first global unregulated, uncontrolled asset/ currency it's value has increased and grown. It is a liquidity well, that is, it sucks up all the conventional fiat currencies that compared to it have less value. So the answer is currencies against each other are doing what currencies have done, but all currencies compared to Bitcoin have gone down in reality. Some are calling Bitcoin the first global currency, I tend to agree with this. This is something that has blindsided the world financial sector, some are ignoring it calling it a bubble (these are the dinosaurs of this financial age and will become extinct), there are those that are moving into it cautiously and this I believe is the right approach. As the Bitcoin ecosystem grows and it's technology evolves, it will enable things in the finance sector that have not existed and the institutions and people that do not get on board with this will find themselves struggling to keep up or dying out. 

Bitcoin and the new digital asset ecosystem that is developing is the new money...

Hope you like the article, my opinion only, happy Bitcoin-ing..