Bitcoin and the cryptocurrency market are exploding. In just the last month alone we have seen the market capitalization hitting record high. Even despite some of the fluctuating declines, the trend is on a steady rise.
In August alone, markets have seen the value of Bitcoin reach an impressive value of $4292 per coin. Up more than $3000 from where it began in early March of this year.
The potential for Bitcoins and other up and coming crypto currencies seems limitless. This is due to the fact that these virtual currencies gain value by way of the network effect. The network effect is an economic phenomenon whereby an object or service gains value the more that people rely on and use it.
Take for example the telephone. When it was first invented, it was an abstraction of a talking telegraph that the average person struggled to understand. Let alone use and one could forget about the idea of ever owning one. However, as the technology evolved it became more accessible to a greater number of people. Thus, the general public began to see its value in society.
Today the technology has progressed in such a way that it has become an integral part of our society. People all around the globe as using cell phones, even in some of the most remote areas, and the value of even your most basic smart phone has skyrocketed. People have learned to rely so heavily on this technology that many cannot even imagine going a day without their cellular devices.
Bitcoin and Cryptocurrency Rising Era
Now we can look at Bitcoin and other rising crypto currencies in much the same light. We are on the edge of a new era. Where the telephone brought the world into a new age of communication, crypto currencies are on the verge of bringing the world into a financial revolution.
Back in 2009, Bitcoin started out as something that only hackers and the very tech savvy could comprehend. Then it found a foothold in the depths of the web and got a pretty bad rap for its use on the black market. Now it’s working its way into the mainstream and nations around the world are looking for ways to work this new technology to their advantage.
Crypto currencies are gaining so much traction that when a new one arises, it experiences an almost instantaneous surge across digital exchanges. Bitcoin Cash, not to be confused with the original Bitcoin, is just one example of this trend.
In the two short weeks since its creation, the value of a single unit of Bitcoin Cash has surged and then stabilized to around $300. There are, however, critics on both sides of the coin.
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