Mish Is Against the Idea of Bitcoin Being a Peer-To-Peer GoldApril 28, 2019
Encouraging developments were seen over the past weeks concerning the Bitcoin price trend. A rapid decline in price will typically be followed by a price stagnation which might last for quite a long time.
It has forever been difficult to determine the fair value of cryptocurrencies by due arbitrage because of the structural limits of the settlement platforms and the Bitcoin.
The price dynamics for Bitcoin and several other cryptocurrencies depend upon investor sentiment. In some situations, the investor sentiments are based on the patterns of predictions provided by technical analysis. The catalysts that cause the tokens to rise or fall is a subject of paramount importance.
With institutional investors establishing their core strategic positions in cryptocurrency, this is definitely a bullish sign.
Max Keiser stated, “Bitcoin is Peer-to-Peer Gold.” He establishes the scarcity factor by stating that only a limited number of coins will be ever mined as a Bitcoin.
Mish responded to Keiser stating that nothing prevents the miners from minting more numbers of coins either. This might not happen for fear of more mining, damaging the price according to many.
The Hard fork of Bitcoin has happened in a couple of situations. At the time of the first fork, the investors were given equal amounts in Bitcoin cash. One fork was maintained as Bitcoin Cash, and the other one was called as Bitcoin SV. Considering these two forks, there are more than the originally promised numbers of tokens.
Ethereum which was created to correct the scaling flaw of Bitcoin as well forked, thereby creating double the number of ETH coins than originally promised.
Mish states that cryptocurrency is a lot like fiat and can be created out of thin air. He also stated that the market currently has more than 2500 cryptocurrencies and each of them claiming that they have value.
Different cryptocurrency companies serve the market in different ways. For instance, Stellar helps unbanked customers; Litecoin works nearly four times faster than Bitcoin, DASH promises to run instantaneously.
Several cryptocurrency companies are hoping that regulators will not catch up on them or any of their activities. There are infinite numbers of look-alike for Bitcoin. When it comes to gold, there cannot be look alike. There can be silver and other alternative metals. So, Mish is against the idea of Bitcoin being a peer-to-peer Gold.
Mish states that “Scarcity is a Mirage” and there is no real limit about the numbers of coins that Bitcoin can hold.