Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
Forex Trading Management: The Importance of Being Prepared - 19th Feb 19
Gold Stocks are Following This Historical Template - 19th Feb 19
Here’s Why The Left’s New Economic Policies Are Just Stupid - 19th Feb 19
Should We Declare Emergency for Gold? - 19th Feb 19
Why Stock Traders Must Stay Optimistically Cautious Going Forward - 19th Feb 19
The Corporate Debt Bubble Is Strikingly Similar to the Subprime Mortgage Bubble - 18th Feb 19
Stacking The Next QE On Top Of A $4 Trillion Fed Floor - 18th Feb 19
Get ready for the Stock Market Breakout Pattern Setup II - 18th Feb 19
It's Blue Skies For The Stock Market As Far As The Eye Can See - 18th Feb 19
Stock Market Correction is Due - 18th Feb 19
Iran's Death Spiral -- 40 Years And Counting - 17 Feb 19
Venezuela's Opposition Is Playing With Fire - 17 Feb 19
Fed Chairman Deceives; Precious Metals Mine Supply Threatened - 17 Feb 19
After 8 Terrific Weeks for Stocks, What’s Next? - 16th Feb 19
My Favorite Real Estate Strategies: Rent to Live, Buy to Rent - 16th Feb 19
Schumer & Sanders Want One Thing: Your Money - 16th Feb 19
What Could Happen When the Stock Markets Correct Next - 16th Feb 19
Bitcoin Your Best Opportunity Outside of Stocks - 16th Feb 19
Olympus TG-5 Tough Camera Under SEA Water Test - 16th Feb 19
"Mi Amigo" Sheffield Bomber Crash Memorial Site Fly-past on 22nd February 2019 VR360 - 16th Feb 19
Plunging Inventories have Zinc Bulls Ready to Run - 15th Feb 19
Gold Stocks Mega Mergers Are Bad for Shareholders - 15th Feb 19
Retail Sales Crash! It’s 2008 All Over Again for Stock Market and Economy! - 15th Feb 19
Is Gold Market 2019 Like 2016? - 15th Feb 19
Virgin Media's Increasingly Unreliable Broadband Service - 15th Feb 19
2019 Starting to Shine But is it a Long Con for Stock Investors? - 15th Feb 19
Gold is on the Verge of a Bull-run and Here's Why - 15th Feb 19
Will Stock Market 2019 be like 1999? - 14th Feb 19
3 Charts That Scream “Don’t Buy Stocks” - 14th Feb 19
Capitalism Isn’t Bad, It’s Just Broken - 14th Feb 19
How To Find High-Yield Dividend Stocks That Are Safe - 14th Feb 19
Strategy Session - How This Stocks Bear Market Fits in With Markets of the Past - 14th Feb 19
Marijuana Stocks Ready for Another Massive Rally? - 14th Feb 19
Wage Day Advance And Why There is No Shame About It - 14th Feb 19
Will 2019 be the Year of the Big Breakout for Gold? - 13th Feb 19
Earth Overshoot Day Illustrates We are the Lemmings - 13th Feb 19
A Stock Market Rally With No Pullbacks. What’s Next for Stocks - 13th Feb 19
Where Is Gold’s Rally in Response to USD Weakness? - 13th Feb 19

Market Oracle FREE Newsletter

The Real Secret for Successful Trading

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.


© 2005-2019 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