Bitcoin, my thoughts
Hello guys, it is a while ago since my latest blog post. But here I’m! I’m busy at this moment with building my own business Made I.T. and doing some other cool tech stuff. One of the things is Bitcoin. I was thinking for a while to start back blogging on this website. So I started with a topic about Bitcoin. Bitcoin is growing incredibly fast. Everyone who is a little bit interested in tech has heard something about it. But is it that great as everyone says? Or is it that bad to look at as some opposites say?
How did I start with bitcoin?
Sinds a few years I often check the news about bitcoin, and when I read that news, I thought a lot of my self, why not just try it. Buy a little bit and see how it goes. I never did it. Was I afraid? I don’t think that. But at that time it wasn’t that easy, and what if it doesn’t work? What if I lose the money? I had a lot of questions, but no answers. One year ago in July 2016, I founded a very dangerous security bug in an Asian website. After I contacted the company and they fixed the security hole they asked me how they can pay me for helping them fix the problem. I ask them to send it to me in Bitcoin. Not much but just enough to play. After a few weeks, the bitcoin increased to around €500 per bitcoin. That was high for that time. I thought that the price would drop soon, so I take it for what it was. I exchanged 66% of my bitcoin it was just above €1000, and leaf the rest on my wallet.
After some months in 2016, the bitcoin price was relatively stable. At the beginning of 2017, I started looking at other cryptocurrencies. I founded a website litbit.eu a dutch Exchange with about 20 different cryptocurrencies. They also provided the ability to store the crypto coins in an online wallet under their control. It was an easy way, so I started with €25. I bought five shadow cash coins and 3 LTC coins. After a few days the LTC was increased, so I exchanged it back to euro and bought 5 Pivx coins. After some time shadow cash was decreased a lot. The coin cancelled and a few months later I received 2.5 particl in return. The Pivx doubled in price; the particle increased enough, so I decided to sell them, and with many luke, I created from the €25 that I started with, €36 in 5 months. It is an increase of 44%. It isn’t that much, if you compare it to the bitcoin, from January 2017 until now it increased with 1000%, it is insane.
Is the bitcoin system that good?
The blockchain technology is a very good kind of database to store contracts or transactions securely. But if I take a closer look at the bitcoins, the most of the users who have some, don’t use it to pay with. The most bought some coins in the hope that it increased a lot and gained a lot of money. So do I. That is, in my opinion, the biggest problem of bitcoin. It will never be a common adopted currency as nobody uses it as a currency. If you look at the stats of the bitcoin wallets, you can conclude that Bitcoin is managed by a happy few. 3% of the richest wallets has a total of 96.36% of all the bitcoins currently available. A few months ago it was 5% of the richest. If you have more then one bitcoin, you are within this 3%, if you have more then ten bitcoins you are one of the 0.67% richest bitcoins users. Less than 130000 people have the control over more than 85% of the bitcoins. That are 14.662.937 bitcoins, €106.865.880.512,46.
So bitcoin will never completely crash, these few people have invested that much money that they never let it crash. The system is excellent, but not how it is in use.
If you are smart and take good care, you can make a lot of money with bitcoin. Jump on the car, and go with the flow and follow the bigger guys in the bitcoin world. But stop in time. In my opinion, it will never become a common adopted currency. The next problem that is coming up that will hold the bitcoin from becoming more common is the massive growth of new starting currencies. Daily a few new coins are starting, the creator’s goal only becomes as great as bitcoin or take as many real money as they can.
Bitcoin and the blockchain technology has a lot of potentials, but it won’t replace the euro’s and dollars as they are now.
I Wrote this post at the beginning of January, since then the price has dropped the amounts aren’t the same anymore.