Best of the Week
Most Popular
1. Ray Dalio: This Debt Cycle Will End Soon - John_Mauldin
2.Stock Market Dow Plunge Following Fake US - China Trade War Truce - Nadeem_Walayat
3.UK House Prices 2019 No Deal BrExit 30% Crash Warning! - Nadeem_Walayat
4.What the Oil Short-sellers and OPEC Don’t Know about Peak Shale - Andrew_Butter
5.Stock Market Crashed While the Yield Curve Inverted - Troy_Bombardia
6.More Late-cycle Signs for the Stock Market and What’s Next - Troy_Bombardia
7.US Economy Will Deteriorate Over Next Half Year. What this Means for Stocks - Troy_Bombardia
8.TICK TOCK, Counting Down to the Next Recession - James_Quinn
9.How Theresa May Put Britain on the Path Towards BrExit Civil War - Nadeem_Walayat
10.This Is the End of Trump’s Economic Sugar High - Patrick_Watson
Last 7 days
Gold Price – US$700 Or US$7000? - 16th Jan 19
Commodities Are the Right Story for 2019 - 16th Jan 19
Bitcoin Price Wavers - 15th Jan 19
History Shows That “Disruptor Stocks” Will Make You the Most Money in a Bear Market - 15th Jan 19
What Will the Stock Market Do Around Earnings Season - 15th Jan 19
2018-2019 Pop Goes The Debt Bubble - 15th Jan 19
Are Global Stock Markets About To Rally 10 Percent? - 15th Jan 19
Here's something to make you money in 2019 - 15th Jan 19
Theresa May to Lose by Over 200 Votes as Remain MP's Plot Subverting Brexit - 15th Jan 19
Europe is Burning - 14th Jan 19
S&P 500 Bounces Off 2,600, Downward Reversal? - 14th Jan 19
Gold A Rally or a Bull Market? - 14th Jan 19
Gold Stocks, Dollar and Oil Cycle Moves to Profit from in 2019 - 14th Jan 19
How To Profit From The Death Of Las Vegas - 14th Jan 19
Real Reason for Land Rover Crisis is Poor Quality of Build - 14th Jan 19
Stock Market Looking Toppy! - 13th Jan 19
Liquidity, Money Supply, and Insolvency - 13th Jan 19
Top Ten Trends Lead to Gold Price - 13th Jan 19
Silver: A Long Term Perspective - 13th Jan 19
Trump's Impeachment? Watch the Stock Market - 12th Jan 19
Big Silver Move Foreshadowed as Industrial Panic Looms - 12th Jan 19
Gold GDXJ Upside Bests GDX - 12th Jan 19
Devastating Investment Losses Are Coming: What Is Your Advisor Doing About It? - 12th Jan 19
Things to do Before Choosing the Right Credit Card - 12th Jan 19
Japanese Yen Outlook In 2019 - 11th Jan 19
Yield curve suggests that US Recession is near: Trading Setups - 11th Jan 19
How Unrealistic Return Assumptions Are Ruining Your Stocks Portfolio - 10th Jan 19
What’s Next for the US Dollar, Gold, Stocks & Bonds? - 10th Jan 19
America's New Africa Strategy - 10th Jan 19
Gold Mine Production by Country - 10th Jan 19
Gold, Stocks and the Flattening Yield Curve - 10th Jan 19
Silver Price Trend Forecast Target for 2019 - 10th Jan 19
Silver Price Trend Forecast 2019 - 9th Jan 19
Did Strong December Payrolls Push Gold Prices Up? - 8th Jan 19
How to Spot A Tradable Stock Market Top? - 8th Jan 19
Why 90% of Traders Lose - 8th Jan 19
Breadth is Very Strong While Stocks are Surging. What’s Next for Stocks - 8th Jan 19
Half of Investment-Grade Bonds Are Just One Step from Junk Status - 7th Jan 19
Stocks Rallied Again, Still Just an Upward Correction? - 7th Jan 19
Gold Golden Long-Term Opportunity - 7th Jan 19

Market Oracle FREE Newsletter

Bitcoin Analysis and Trend Forecast 2019

The Value of Bitcoin

Currencies / Bitcoin Jul 11, 2018 - 03:38 PM GMT

By: Submissions

Currencies In a world that is looking for alternative forms of currency due to heavy regulations and red tape installed in the current transaction systems of the economy, cryptocurrency is presented as a formidable option to traditional forms of currency. Cryptocurrency began as a craze for digital currency that is unbound by many laws and regulations. With cryptocurrency, few questions are asked when making or receiving payments which makes it very attractive.




The greatest breakthrough in cryptocurrency has been Bitcoin; among other forms of cryptocurrency, it has been the one that has created a lot of fuss and anticipation. Most countries are accepting the new form of currency as they begin to formulate new forms of regulations to incorporate some form of accountability. Most countries have accepted the Bitcoin as a new form of digital currency. Others, however, still deem it illegal and hence go to limits to ban it. Such nations include:

  • Algeria
  • Bolivia
  • Nepal
  • Bangladesh
  • Cambodia
  • Ecuador

What is Bitcoin?

Bitcoin is a form of digital money created to facilitate a consensus network where two people can agree to transact in digital money after completion of the sale of goods and services. Bitcoin runs on blockchain technology which is a digital ledger of economic transactions. The ledger is incorruptible and can be programmed to record anything of value apart from financial currency. Even though the technology was developed for Bitcoin, its inability to be corrupted has given it value for other forms of transactions that are non-financial.

But as time moves, Bitcoin isn't looking as secure as it was imagined. Bitcoin exchange agencies are the bodies holding client assets in the form of bitcoins and have lately been the subject of losses due to hacking. The exchange agencies work in the place of banks as most countries are still formulating regulations for the new cryptocurrency. An analysis conducted on the subject shows that about 10% of Bitcoins in supply are stolen by hackers; something that may affect the value of Bitcoins.

Financial Value of Bitcoins

Cryptocurrency was created under the guise that it presented a form of currency that was not subjected to regulations. The phenomenon gave Bitcoin a higher value in the financial market but as countries legalise Bitcoins through tentative laws and seek to regulate the currency, it threatens to deplete the value of the currency. Despite the threat, it may not be credible as regulations introduce some form of transparency in a field that is filled with some chaos. Transparency is the only legit way through which Bitcoin can leave the virtual economy and be accepted in the real economy.

On the contrary, the value of Bitcoin or cryptocurrency as a whole is based on the volatility which is influenced by a market that is trying to figure out how much financial freedom is worth especially for countries or governments that seem oppressive to the economy.

Sectors using Bitcoin

On the basis of financial freedom, Bitcoin is used in many sectors that are heavily regulated in the real economy. These include entities such as online betting platforms and Bitcoin casinos online. With such entities not having to be subjected to regulations because of using cryptocurrency, clients and business owners get to earn big. Most casinos issue about 97% payout to their clients and remain with 3% as commission also attracts a whole new level of volatility in the sector.

While the future remains promising for an enabling technology like blockchain, success for Bitcoin will depend on the framework decided upon by lawmakers.

By Dylan M.

© 2018 Copyright Dylan M. - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules