2 bitcoin to dollar
There will be a limited amount of Bitcoin in the world, though at this point not all bitcoins have been created. A single bitcoin can be generated by mining — this is done with a special program on a PC, and uses the processing powers of either a CPU less powerful for this or a GPU far better for this.
One major reason why this amount keeps rising is the fact that you can purchase a fraction of a bitcoin. A fraction of a bitcoin has its own fractional value: Once you have ,, satoshi, you have one bitcoin.
The price of Bitcoin is extremely volatile. That is all coming and at that point the market will harden itself against panics and booms. Until then we enjoy rises and dips and volatility that puts most bitcoin dilettantes off their lunch. Ultimately new and old users are testing the limits of a system that, for a decade, has been untested. The futures market will be a big driver in growth and bust over the next few months as institutional investors begin using the currency.
Yes, to those who are betting big on BTC. Again, I cannot tell you whether to buy or sell but the common expectation is that bitcoin raises to a set point and then fluctuates between a high and a low until the next run up.
Many expect foul play. Now that Bitcoin futures are available it is easy to buy into futures market first and then create a massive number of buys or sells of Bitcoin to ensure the price swings in favour of your futures contract. Bubble dynamics aside, there are a number of other concerns we have when it comes to Bitcoin, which make us question whether or not it really is the future of money, as some of its evangelists claim.
If we could draw an analogy, we think many crypto-enthusiasts are mistaking the pipelines for the oil. Any monetary instrument that lacks consistency is surely doomed to fail, as this is a fundamental prerequisite for a sound and widely acceptable monetary instrument. We also think that Bitcoin bulls will, by necessity, be sadly disappointed in its price trajectory if it truly is to become the primary form of money used in commerce , based on the historical long run real returns that gold has generated.
After all, economies would simply cease to function in any environment where money itself generates a greater return than enterprise. Finally, whilst we are as supportive of free markets and competition as anyone, we find the whole idea of a world of competing cryptocurrencies absurd, at least if they are to be used as media of exchange and units of account.
Indeed, taken to its logical extreme, the kind of world that crypto-enthusiasts imagine would in some ways be no more sophisticated than a barter system. Access our detailed report on Bitcoin, Dollars and Gold here: Author of two books on investing in gold and causes of the GFC. Great article, If Bitcoin is money or equivilant or its competitor its hard to see Governments allowing it to be controlled by anyone but themselves.
Could it become a world currency with its own exchange rate??