How do Bitcoins compare to traditional payment services with respect to ease and speed of transactions?
Bitcoin and the Bitcoin network is a vastly superior to anything we currently have. The current payment networks are sort of like the postal system, it takes a long time for those transactions to happen, especially cross country transactions and the charges can get very high. There’s a lot of documentation and so forth.
Bitcoin is like email, you can send Bitcoins any time, 24 hours a day, 365 days a year. It’s instant and cost is negligible, so comparing Bitcoins to the current payment networks or current money transfer services is a bit like comparing email with postal services, there’s just no comparison, it’s vastly superior.
What is Bitcoin?
Bitcoin is increasingly being branded as the internet of money, but for those unfamiliar with the concept, the best way to understand Bitcoins is to compare it with the internet.
If you think about before the internet, the way you would consume media, the way you would communicate, you would need a middle man for everything. So if you’d want to watch television, the middle man would be CNN or CNBC. If you’d want to make a call, the middle man would be the phone service like AT&T or Comcast.
What the internet did was remove the middle man, so two people could share videos, communicate, send text messages, do voice calls, and when that happened, innovation happened on a global scale on this network.
The other thing that happened was that were different networks for different mediums. All of these mediums were simplified on this one medium, the internet.
If you think about the current financial infrastructure, there are different networks for different purposes. Every country has its own infrastructure, there own network and none of these are interruptible. What Bitcoin does is connects all of these networks into one decentralized network.
Bitcoin and the Bitcoin networks are going to be the next internet, the internet of trust, the internet of value and the internet of money.
Like any other commodity, Bitcoin prices are subject to volatility, but the boom and bust cycles when it comes to Bitcoins have been particularly extreme. That said, how does an investor time the market?
Bitcoin was about $100 in 2011 and at the start of 2017, it was at $1,200. In the beginning of 2018, prices reached $20,000. Our analysts forecast each Bitcoin reaching upwards to $1,000,000 or more per coin by 2021.