There are many major investments right now, including electric vehicles, renewable energy, and anything to do with the cloud. One investment arguably dwarfs them all in popularity: Earn money from toptips4u.com
Bitcoin has almost tripled in the last three months, more than quadrupled in the last year, and is up about 7,200% in the last five years. Unless you've been lucky enough to retain a low-volume, undiscovered small-cap company in early 2021, probably doesn't have a stock that beats bitcoin.
The world's largest cryptocurrency is a dangerous investment
But despite its gains, I also see Bitcoin as an inherently dangerous investment. That is because it suffers from the fatal error of scarcity versus utility.
Bullish supporters of bitcoin see the 21 million bitcoin token as the driving force behind this rally. Having a limited number of removable tokens means that Bitcoin will avoid the deflationary aspect that plagues fiat currencies, such as the US dollar. The belief is that as the American (and global) money supply grows, the value of each bitcoin will skyrocket Earn money from toptips4u.com
Optimists also tout the usefulness of bitcoin. Divisible into eight decimal places, getting into the bitcoin craze can be done with just a few dollars. Also, more companies than ever accept bitcoin as a form of payment.
The problem is that the value of bitcoin seems to depend on scarcity and utility; however, its design only makes it possible. If the is deemed to be in short supply, there will never be enough tokens in circulation to make it a reliable (i.e. minimal utility) medium of exchange. In the meantime, if the goal is to make Bitcoin a replacement for cash, then there will be no shortage because it will be necessary to increase your token limit.
Furthermore, it could be argued that bitcoin does not provide more than the false perception of scarcity. Rather than being limited by something physical, the only thing preventing the bitcoin token limit from being increased is community consensus. Personally, I trust the physical scarcity more than Pinky's promises not to increase the chip limit Earn money from toptips4u.com
If a person or business entity is the first to resolve and verify a block of transactions, they are awarded a block reward, which, as of today, amounts to 6.25 bitcoin tokens (about $ 216,000). High-powered GPUs make all of this happen.
At the heart of this GPU, the insanity is the power of the NVIDIA (NASDAQ: NVDA) graphics card. Make no mistake about it: NVIDIA generates most of its sales from the gaming industry and data centers. However, RBC Capital Markets analyst Mitch Steves notes that at least $ 175 million of NVIDIA's $ 2.27 billion in gaming revenue during the third quarter came from the sale of GPUs to crypto miners. Note that bitcoin is not the only cryptocurrency that is validated using the proof of work model.
With bitcoin recently soaring to the skies, NVIDIA could generate more than 4% of its total sales from cryptocurrency mining in the future.
Bitcoin's rewards can pay off
In early December, Visa announced that it had partnered with financial technology company BlockFi to introduce a credit card with bitcoin rewards. It will debut next spring. As with cashback rewards cards, consumers will get a 1.5% cashback on their purchases. But instead of these rewards being paid out in miles or fiat currency, they will immediately be converted into bitcoin tokens that the cardholder can withdraw, exchange, or use as collateral for a crypto-backed loan.
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