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5 reasons why Bitcoin is undervalued is

the looks During some of a Pessimist Bitcoin to Zero, keeping other Bitcoin even undervalued. The forecasts are glamorous figures in the Ecosystem could be bul

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5 reasons why Bitcoin is undervalued is
the looks During some of a Pessimist Bitcoin to Zero, keeping other Bitcoin even undervalued. The forecasts are glamorous figures in the Ecosystem could be bullisher. Legendary, for example, is know of the crystal ball prediction of Mr. "I-need-Satoshi" McAfee. The exile-presidential candidate bet to be the best piece that BTC will be by the end of 2020, one Million U.S. dollars worth.

On the 27. April 2019 BTC$5.251,00 -0.78% part Facebook Twitter LinkedIn xing mail

During the latter forecast is hardly possible to suggest some indicators, in fact, is that Bitcoin is valued at a price of about US $ 5500. Here are 5 reasons will rise, which is why the price of Bitcoin in the long term.

1. Scarcity

Bitcoin is the scarcest Asset in the history of mankind. How Crypto Researcher Hasu in an Interview with BTC-ECHO explained, there may be real shortages in the Digital. Finally, the 21 million Cap in the Code with a mathematical proof of security.

Bitcoins Supply approaches asymptotically to 21 million BTC. Every four years, the inflation is halved rate. Image Source: Bitcoin Wiki.

the reaction While comparable goods, such as Gold or silver in the case of increased demand, Supply will follow (in the case of higher Gold demand, mining the gold mines to increase as the precious metal and increase the offer), Bitcoins offer rigid. One speaks of the so-called price elasticity of supply and the BTC as low as nowhere else. An increased demand will, therefore, with safety on the course, because even if in the case of a demand shock more Miner to go to the grid, the quantity of inflation or kidneys. Only the Difficulty rises, so that, on average, every ten minutes a Block is emitted.

2. Coinbase Reward Halvings

bitcoin price development is cyclical. The Good thing about the transparent structure of the Blockchain is that models for the future course of Bitcoin-course build. This is what happened in the so-called Stock-to-Flow model. Twitter-user and crypto-market analyst PlanB propagated for some time, the connection between the Boom-and-Bust cycles of the Bitcoin course and held every four years, Coinbase Reward Halvings.

Accordingly, causes only the expectation of a shortage of supply in the run-up to the Halvings of the market participant's accumulation of Coins. In retrospective, the Stock-to-Flow model is an apparently accurate picture of the BTC exchange rate history signed. Currently, there are still about 13 months until the next Reward halving – and lo and behold, the prices rise slowly again. The model provides for a rate of 55,000 dollars for the Top of the next cycle.

3. Network effects

This is also the third driver: the network effects. Technologies that work best in a network that exhibit an exponential growth. This was true for the distribution of telephone connections, such as for the Internet alike.

On the network effects, which are expected to boost the dissemination of the Bitcoin Protocol, said first Trace Mayer. There are seven in number:

"Seven distinct network effects of bitcoin" – Trace Mayer

This Video on YouTube. Speculation: Hodler speculate on rising prices, and accumulate in bearish phases, acceptance in the retail trade: a cheaper and faster payment processing acceptance of the consumers-for example, through discounts to Bitcoin payments security: the Above-mentioned reasons lead to the entry of miners. The concerns for increased security in the network. Acceptance in the traditional financial sector: The traditional financial sector, the returns of the best asset since time immemorial, not for long, miss. The Open-Source structure: Bitcoin is a decentralized Open Source project. The more individuals are invested, the more people have an interest in the Success of the project. The world's reserve currency, the Bitcoin: Yes, Bitcoin has due to all these reasons, the makings of a world reserve currency. All transactions are consensus between all the participants in the network, and thus irrefutable mathematical truth. 4. Proof of Work

Where a lot of improvement potential, is in truth one of the fundamental reasons for the positive development of the crypto-currency no 1. Proof of Work makes Bitcoin to the first database in the world. Entries can only be made with such a high expenditure of energy change that an attack on the network is economically hardly feasible. Furthermore, the expected results of an upcoming Coinbase Reward Halving – so that the wage of the Miner is cut in half – to drive a high computing performance in the run-up to the halving. Finally, the Miner will want to accumulate in advance as many BTC as possible. This ensures an increase in the Hash Rate and secures the network in addition – a seemingly ingenious Interplay of a number of incentives.

BTC Hash Rate in the period of 1 year. Image source:

and lo And behold: Indeed, the BTC Hash Rate has been increasing since quite some time.

5. Do not use

Logically, an economically viable incentive structure alone is not sufficient. Bitcoin must rather promote a value proposition to get that higher rates and more attention. The Price Driver No. 1 is the actual Use Case of Bitcoin. And here, one suspects the ghosts. Bitcoin is a Narrative. What are the Benefits of the crypto-currency, no. 1, can accept for Each of the different forms. For the citizens of Venezuela, Bitcoin can be a kind of Hedge against the more and more invalidating the ends of Bolivar. For citizens of the West, however, the value of the revealed promise of BTC is not at first glance, and thus serves initially as an object of speculation.

Bitcoins (possible) path to global adaptation. Source: Murad Mahmudov (

Bitcoin apply to users in this country as a Bank critical and are in search of a new Form of money with which you against economic crises can protect themselves. In order for Bitcoin but about the Status of a value in memory, you must first decrease the volatility. Until then, Bitcoins Benefit for people living in countries with well-functional financial system remains vague.

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