London, UK, 4 Sep 2021, ZEXPRWIRE – There is a lot of hype surrounding the cryptocurrency market, and there are people who claim to be able to time it well. Whether or not you agree with them, timing does play an important role in investment success — both entering and exiting investments at opportune times can mean greater returns than simply holding onto your money for years on end. With that said…
Jack Roberts, broker from Victoria-Coins says, is now a good time to hold Bitcoin? Is today’s price too high, given its 1-year jump from $1k/BTC up over $20k/BTC just months ago? What about Dogecoin (DOGE), which has recently seen similar gains after sitting dormant since 2014 before suddenly skyrocketing this year as Altcoins saw their own explosive growth?
What is important to keep in mind with cryptocurrency markets is that the technology itself — the blockchain — is here to stay; it’s just a matter of which particular cryptocurrencies, and how many of them, will be around five years from now.
Bitcoin was created to solve the problems of inflation and scarcity associated with fiat currency. Bitcoin is scarce by its design, philosophy, and nature; it has a hard cap at 21 million coins that cannot be changed or altered after 2140. Currently there are 18.7 million Bitcoins in circulation, but only 16% exists as usable currencies (not held for investment). As you can see from this statistic alone, owning Bitcoin allows people to take control over their own money without regulation – which makes them significant investments because they rely on market forces rather than government support like many other forms of property do today!
The supply of Dogecoin is expected to be constant at 100 billion total coins. Every minute, a new block is mined and 10,000 additional Dogecoins are created. There’s nearly 15 million more dollars in circulation every day making it an infinite currency with over 130 billion already available for use worldwide!
The inventor of Bitcoin, Satoshi Nakamoto, created a new kind of currency that is decentralized and not backed by any nation state. This meant anyone could buy/sell goods or store their money anywhere in the world without being under government jurisdiction. The idea behind this digital cash system was to have an efficient payment network where people can transact directly with each other instead of going through intermediaries such as banks which add extra cost for users
When Satoshi Nakamoto created Bitcoin, he / she / they knew exactly what they were creating. They had experienced fiat currencies first hand before deciding that there should be something better than traditional systems like national banknotes or commodity-backed paper monies. So when it came time to create a peer -to-peer electronic cash system, no one had a better idea than Nakamoto. They knew the flaws of paper cash and fiat currencies; they’d used them. The resulting idea was to create something that would solve these issues with money as we know it.
Dogecoin was created by software engineer Billy Markus for a laugh. It took about three hours to make, using the available Bitcoin source code as its foundation.
The biggest problem with fiat currency is inflation. If governments print too much money, there is an excess of capital in the market which devalues each unit. And this is exactly what has happened time after time all around the world! Do you remember when $1 could buy you a loaf of bread? Or maybe even less than that!?
While both Bitcoin and Dogecoin have a large community, the type of people in their communities are different. While cryptocurrencies like Bitcoin have been around for more than 12 years, they appeal to those who want decentralized monetary systems. In contrast, Dogecoin has largely popular among younger generations as well as new cryptocurrency users because it is easily accessible through its light-hearted nature on social media platforms such as Twitter or Reddit where many memes originate from that garner attention due to how ridiculous they sound but still gain support by being humorous with little substance underneath them except perhaps an underlying truth about society which can be found if you look hard enough at things we do every day only phrased differently .
In the near future, more cryptocurrencies will be born from Bitcoin’s open- source code. These new forms of currency may have a different goal in mind than what Bitcoin is trying to achieve. While some might run a more centralized system that seems safer, others might break away from being viewed as a ‘currency’ all together and only be used for specific cases such as trade instead of everyday spending. As time continues on, it is becoming increasingly unlikely that one particular form of cryptocurrency will dominate completely. In fact, there are great opportunities for multiple currencies to exist side by side – each with their own use case.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.