Can Bitcoin be a good investment?
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Introducing Bitcoin ushered in a revolution.
There's always been the idea of having digital money. It has been verified by Bitcoin.
Money wasn't the only factor. Bitcoin ushered in an innovation-filled market worth multiple trillion dollars.
During this report, we'll look at whether Bitcoin is still a good investment.
Score for Crystalmix: 97 / 100
Report your results:
30 / 33 Product functional
Community 33 / 33
Leadership 33/33
Work in Progress
The Bitcoin project has a single purpose. The state of being money. Essentially, it fulfills all 3 functions of money.
Adding value to the store
Media of exchange
Counting unit
The store of value is strong. The number of Bitcoins that can exist is limited. 21 million is the maximum number.
Due to lost passwords and sending to non-existent addresses, people lose access to the circulating supply.
The company Decrypt estimates that less than 4 million Bitcoins are gone for good.
Bitcoin is a powerful form of exchange. You can easily create a Bitcoin wallet and start using it right away.
Especially when compared with traditional banks.
As an example, the Central American country of El Salvador announced it will recognize Bitcoin as legal tender in early 2021. In less than six months, 21 million citizens have actively used a Bitcoin wallet. As compared to 18 million people having bank accounts.
Additionally, Bitcoin is successful as a unit of account. Having the ability to evaluate the value of a product or service.
Eight decimal places are available for Bitcoin. In case it ever needed to be more, the core developers would easily be able to do it.
Currently, Bitcoin struggles to serve as a stable unit of account. The likelihood is that it will occur soon.
Compared to USD or EUR, Bitcoin's value is volatile.
Early Bitcoin users buying pizza is an excellent example. Ten thousand Bitcoins were spent on it. Bitcoins worth the same amount today would be worth millions of dollars.
There is no other solution to this problem other than widespread adoption. It will stay stable if everyone uses Bitcoin natively.
To be clear, the price in its current form is too volatile to be used as a unit of account. The result is money.
As merchant adoption increases, US dollars (or another preferred fiat currency) will be used to measure first, followed by Bitcoin.
Adaptability & Decentralization
Scalability is also an issue with Bitcoin. This limits the amount of transactions that can be executed.
Bitcoin is capped at approximately 10 million transactions per month.
Numerous solutions have been suggested. However, they often are accompanied by centralization. Departing from Bitcoin's philosophy of decentralization.
Scaling the technology at the same time as staying decentralized is impossible.
Two possible scenarios are presented here.
On top of Bitcoin, developers create infrastructure that enables scalable decentralization.
Competitors find a way to make Bitcoin useless.
The first scenario seems more likely as the Bitcoin ecosystem grows. Lightning Network comes to mind.
There is a possibility of the second scenario. A decade ago, Bitcoin was invented. It tells us a lot about Bitcoin that no one has yet dethroned it.
A better Bitcoin would offer billions of dollars in profit to the creator. Nobody has succeeded despite strong financial incentives.
Technologically, this is not possible. However, there is one funny thing about innovation: Everyone is always surprised by it. We should not disregard this possibility.
In either case, Bitcoin has a real chance to replace money. Many banking professionals agree with this statement.
Basically, Bitcoin is a usable product. In the short term it cannot be scaled, but over time it can.
31 out of 33 for working product
Engaged Community
Bitcoin enjoys an advantage over other cryptocurrencies because it was one of the first to launch. Because of its market capitalization, adoption, and recognition, it has the largest market share.
Any cryptocurrency with the largest community is Bitcoin. There are so many sub-communities in it. Languages, cultures and countries differ among them.
In this sense, Bitcoin is a philosophy. Central authorities do not exist. In Mongolia, elected officials serve as members of the rural plains. Bitcoin is a belief held by millions.
Cryptocurrency adoption will grow Bitcoin's community too.
The Bitcoin community is growing and will continue to do so for a long time
Score for active communities: 33 / 33
Leadership is crucial
Decentralizing Bitcoins is the goal of the currency. The project would not run smoothly if a single person was responsible for it.
Satoshi Nakamoto would be the leader if there was one. However, their identities remain unknown. Inactive since years ago, it was a Bitcoin wallet. You won't be able to see them in the media.
All of Satoshi Nakamoto's actions were executed perfectly.
Bitcoin's ideal scenario would be if it had no public figurehead. Leaders in the community lead themselves.
Bitcoin doesn't need someone to speak for it. There are no words to describe bitcoin.
In the absence of leadership, almost every project would fail. But it is precisely that which makes Bitcoin so unique.
There is no better option for Bitcoin than no leader.
Leaders with good scores: 33 / 33
Lastly, I would like to say
The market leader is Bitcoin. Thrives regardless of the metric you use. Consequently, nothing can stop it.
This makes it a valuable asset to have in any portfolio.
Final score on the Cryptonomix: 97 / 100
Introducing Bitcoin ushered in a revolution.
There's always been the idea of having digital money. It has been verified by Bitcoin.
Money wasn't the only factor. Bitcoin ushered in an innovation-filled market worth multiple trillion dollars.
During this report, we'll look at whether Bitcoin is still a good investment.
Score for Crystalmix: 97 / 100
Report your results:
30 / 33 Product functional
Community 33 / 33
Leadership 33/33
Work in Progress
The Bitcoin project has a single purpose. The state of being money. Essentially, it fulfills all 3 functions of money.
Adding value to the store
Media of exchange
Counting unit
The store of value is strong. The number of Bitcoins that can exist is limited. 21 million is the maximum number.
Due to lost passwords and sending to non-existent addresses, people lose access to the circulating supply.
The company Decrypt estimates that less than 4 million Bitcoins are gone for good.
Bitcoin is a powerful form of exchange. You can easily create a Bitcoin wallet and start using it right away.
Especially when compared with traditional banks.
As an example, the Central American country of El Salvador announced it will recognize Bitcoin as legal tender in early 2021. In less than six months, 21 million citizens have actively used a Bitcoin wallet. As compared to 18 million people having bank accounts.
Additionally, Bitcoin is successful as a unit of account. Having the ability to evaluate the value of a product or service.
Eight decimal places are available for Bitcoin. In case it ever needed to be more, the core developers would easily be able to do it.
Currently, Bitcoin struggles to serve as a stable unit of account. The likelihood is that it will occur soon.
Compared to USD or EUR, Bitcoin's value is volatile.
Early Bitcoin users buying pizza is an excellent example. Ten thousand Bitcoins were spent on it. Bitcoins worth the same amount today would be worth millions of dollars.
There is no other solution to this problem other than widespread adoption. It will stay stable if everyone uses Bitcoin natively.
To be clear, the price in its current form is too volatile to be used as a unit of account. The result is money.
As merchant adoption increases, US dollars (or another preferred fiat currency) will be used to measure first, followed by Bitcoin.
Adaptability & Decentralization
Scalability is also an issue with Bitcoin. This limits the amount of transactions that can be executed.
Bitcoin is capped at approximately 10 million transactions per month.
Numerous solutions have been suggested. However, they often are accompanied by centralization. Departing from Bitcoin's philosophy of decentralization.
Scaling the technology at the same time as staying decentralized is impossible.
Two possible scenarios are presented here.
On top of Bitcoin, developers create infrastructure that enables scalable decentralization.
Competitors find a way to make Bitcoin useless.
The first scenario seems more likely as the Bitcoin ecosystem grows. Lightning Network comes to mind.
There is a possibility of the second scenario. A decade ago, Bitcoin was invented. It tells us a lot about Bitcoin that no one has yet dethroned it.
A better Bitcoin would offer billions of dollars in profit to the creator. Nobody has succeeded despite strong financial incentives.
Technologically, this is not possible. However, there is one funny thing about innovation: Everyone is always surprised by it. We should not disregard this possibility.
In either case, Bitcoin has a real chance to replace money. Many banking professionals agree with this statement.
Basically, Bitcoin is a usable product. In the short term it cannot be scaled, but over time it can.
31 out of 33 for working product
Engaged Community
Bitcoin enjoys an advantage over other cryptocurrencies because it was one of the first to launch. Because of its market capitalization, adoption, and recognition, it has the largest market share.
Any cryptocurrency with the largest community is Bitcoin. There are so many sub-communities in it. Languages, cultures and countries differ among them.
In this sense, Bitcoin is a philosophy. Central authorities do not exist. In Mongolia, elected officials serve as members of the rural plains. Bitcoin is a belief held by millions.
Cryptocurrency adoption will grow Bitcoin's community too.
The Bitcoin community is growing and will continue to do so for a long time
Score for active communities: 33 / 33
Leadership is crucial
Decentralizing Bitcoins is the goal of the currency. The project would not run smoothly if a single person was responsible for it.
Satoshi Nakamoto would be the leader if there was one. However, their identities remain unknown. Inactive since years ago, it was a Bitcoin wallet. You won't be able to see them in the media.
All of Satoshi Nakamoto's actions were executed perfectly.
Bitcoin's ideal scenario would be if it had no public figurehead. Leaders in the community lead themselves.
Bitcoin doesn't need someone to speak for it. There are no words to describe bitcoin.
In the absence of leadership, almost every project would fail. But it is precisely that which makes Bitcoin so unique.
There is no better option for Bitcoin than no leader.
Leaders with good scores: 33 / 33
Lastly, I would like to say
The market leader is Bitcoin. Thrives regardless of the metric you use. Consequently, nothing can stop it.
This makes it a valuable asset to have in any portfolio.
Final score on the Cryptonomix: 97 / 100
