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Has the bubble burst?
Posted: 6 February 2018

In 2013 we speculated that, ultimately, bitcoin would collapse due to the large number of alternative or clone coins saturating the market. We still believe that blockchain technology is disruptive, and will change the way fintech and contracts work, but the essential problem with bitcoin is it's based on scarcity, and in the digital world there's massive abundance, of everything. Digital copies trend towards zero marginal cost.

Way back in 2013 we also highlighted the fact that mining bitcoins is not free - you have to pay for the electricity. Once a mining operation consumes more power dollars than it receives for unlocking a new coin, the whole rationale for mining comes to an end, and if those purpose-built machines are turned off, will the blockchain network continue to validate transactions? And if it takes forever to confirm a bitcoin transaction, will bitcoin be worth anything at all?

MindBullet logo THE BITCOIN BUBBLE BURSTS
Controversial digital currency collapses as clones saturate the market
Dateline: 15 March 2015
In essence, Bitcoins are digital artifacts created by using computers to solve complex mathematical formulae, essentially cracking a code. The reward one receives is itself an encrypted code, which can be transferred to others, hence the term 'crypto currency'. Inspired by Bitcoin, Primecoin's protocol searches for chains of prime numbers. Digital currencies like Primecoin and Bitcoin have ...
 
 
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