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Bitcoins rising: Why we were all too stupid to get rich

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@koenau
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It's all our own fault. It would have been so incredibly easy to become a millionaire, nine years ago that winter. Think back. New Year's Eve, little party. It was nice, of course. But is it really beautiful enough to forego the very great wealth?

He was so close, he never will be so close again: If you had only bought five fewer bottles of New Year's Eve sparkling wine and invested the 25 euros you saved in something that wasn't on everyone's lips at the time, but definitely existed. Then you would have 125 Bitcoin today. Current equivalent: 2.5 million euros.

You are skeptical. 25 euros? 2.5 million? How does that work? Where does all the money come from? And why is it yours now?

Remember December 2010

It doesn't, because, you remember - back then you preferred the champagne. Not those invisible coins that wandered the internet. If you could hold it and look inside, a program line of a Bitcoin would look like this: "Round (a, b, c, d, e, f, g, h, 0x27b70a85, w0 + = sigma1 (w14) + w9 + sigma0 (w1) ) ". Put your pension on it? Rather not.

When an Internet user who called himself Satoshi Nakamoto distributed an elaboration on an electronic currency among encryption experts in October 2008, it really only interested real freaks. Nakamoto described his counterfeit-proof electronic currency on just eight pages. The alleged Japanese, registered with an e-mail address from the German provider GMX, continued to discuss his suggestions for some time. A year later he took action: he had his computer calculate the first so-called block of the new currency, now known as Bitcoin. He sent 50 Bitcoin to his American encryption colleague Hal Finney. A test.

A new era

With which a new era began. Absent of the ignorant general public - yes, also from you and also from me! - the quirky idea of ​​a group of computer freaks became a worldwide movement. Money without a state, without a central bank, without politicians who turn on the money press whenever they want. Not only technology fans, but also criminals were fascinated by the possibilities. Bitcoin promised anonymity on the one hand. On the other hand, the amount of money available is limited to exactly 21 million Bitcoin. Once this number of virtual coins has been calculated, with the computational effort increasing as the number grows, it is over.

The official media warned us. All fraud. None of us calculated what the limited total of 21 million that could mean for the intrinsic value of each coin. A comparison shows that there are currently around 15 trillion euro coins as cash or short-term deposits at banks. That is about twice as many as when euro cash was introduced. And about 600,000 times more coins available than with Bitcoin.

The printing press

The printing press is currently running hot with the euro. This is not possible with Bitcoin. Which means nothing else than that each Bitcoin would have to replace 600,000 euros, the entire Eurozone would process all of its payments with Bitcoin. That will not happen, but the euro zone is not the world either. Investors speculate that if only a small part of global assets were to flow into Bitcoin or one of the other 2,000 virtual currencies created on the basis of blockchain technology, their value will have to continue to explode: All in all, all crypto currencies are currently only 630 billion worth euros - that is only a fraction of the global asset of 169 trillion euros.

This is the reason why the total value of all digital currencies has soared again by a thousand percent since the months. What used to be gold, a property or the house bank's savings bond, is being replaced by the belief that large amounts of good old central bank money will have to flow into the new virtual currencies over the next few years. So that their prices simply have to continue to rise, although, as critics note, there is no real value in the code chains.

More for later

No problem for Bitcoin fans: after all, gold or silver also have no real value except that others are willing to pay this or that price for it. Because they believe that someone will give them more for it later.

If the course graphs look like arrows shooting straight up into the sky, it's too late to jump on the moving train. However, it was always too late with Bitcoin. Those who bought last December paid twice as much as in December 2018. And those who got in in September this year, in turn, paid twice as much as those who bought in December 2019. However, his investment had already paid off today, because at the moment he could sell his Bitcoin for twice as much.

Two pizzas - 200 millions

Would that be a big mistake? Would it be as stupid as buying that case of champagne back then? One day you will know. The first real purchase of goods that was ever made with Bitcoin is here like a reminder for all those who are sad about their missed wealth just because sparkling wine was more important back then. Nine years ago, a very early bitcoin owner bought two large pizzas for 10,000 bitcoin. Today that's the equivalent of almost 200 million euros.

Posted Using LeoFinance Beta