Online payment has recently been turned around with the arrival of bitcoin. Bitcoin is decentralised anonymous peer-to-peer payment system. This has created huge buzz around the bitcoin. We have created this infographic hoping to help you better understand the world of bitcoin.
There are several major factors causing bitcoin to grow in market capitalisation and creating revolution in the online payment systems.
Bitcoin has fixed supply of 21 million coins. Some of these coins belong to the developers and the investors. The rest can be mined using special computer called “miners”. Many companies and countries turn into accepting the bitcoin payments, due to the extreme volatility. The fixed supply on its own creates a price bubble.
For example, gold production accounts for 75% each year. However, annual demand for the gold is typically higher than the newly mined gold. The shortages are compensated with recycling of the old gold. As you know gold is expensive metal with limited supply creating huge demand with high prices.
Bitcoin has inherited the same qualities. There is limited amount of coins that can be mined with the current mining power. Furthermore, only 21% of the supply is remaining according to the infographic left to be mined. However, the supply is also connected to the demand of bitcoin which is the next part.
Without the demand there would be nothing. As previously mentioned many companies and countries are adopting bitcoin payments. Bitcoin has already changed how the online payment system works. Bitcoin was the reason behind, so many digital currencies to be born each day. Bitcoin changed not only the way we see our current financial system, but also the way we use it.
All together this created huge demand for bitcoin. This triggered many people to invest into bitcoin pushing the price high and outperforming every other fiat currency currently available.
The infographic is attempting to make a prediction, how bitcoin will hit new $10,000 benchmark and the demand is contributing heavily into that factor.
Mining is playing huge part of the bitcoin process. If you want to better understand the mining process refer to the infographic.
There are a lot of mining companies out there and the number is growing making it difficult to track. However, China controls 81% of the mining power in the world. China has a lot to offer, when it comes to mining. The electricity cost, equipment and labour is very cheap making it great host country.
Even though China banned all the ICO trading on the territories of China. This still did not stop bitcoin to recover from the negative news. Bitcoin price continued to grow in market capitalization and also changing the online payment system.
Will Bitcoin Reach $10,000 benchmark?
The truth about bitcoin is that this digital currency is currently changing the world creating new profitable markets for many investors.
Experts believe that bitcoin is unstoppable regardless its limitations.
We have been witnessed of the BCH split, which took place on 1st August. Then BCG is took place on 24th October. Regardless bitcoin still continues to grow in value. Experts in the trading, believe that after the adoption of the new fork. Bitcoin will be losing some of the market value. However, similar behaviour was observed during the first split.
There are governments standing against bitcoin just because of the power and unpredictability hidden behind this digital currency.
I truly believe that no government or organisation will be capable to stop the bitcoin phenomena. I am very confident to say based on the research conducted that bitcoin will reach new record $10,000 benchmark. However, if you do decide to go into trading my recommendation is to do your own research.