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Digital Gold Currency: What is Bitcoin Actually Worth?

 Billionaire Elon Musk is throwing $ 1.5bn into bitcoin before tweeting that its value "seems to be high." Microsoft founder Bill Gates, a billionaire himself, recently warned investors about losing their shirts with a dangerous cryptocurrency. And US Treasury Secretary Janet Yellen said bitcoin is not good for transactions and it is highly unpredictable.

Yet bitcoin is a hot topic that is constantly emerging. But with so many American technologies, finances, and politics questioning its use as a means of exchange and its long-term value store, many are wondering just how much of a legacy it really is. 

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Proponents of Bitcoin say that crypto is the future and that one day a low-level global financial system will release titans of investment, big banks, and state treasury. They predict that unlimited money that does not depend on any of the old institutions will be the only way to do business.

But because all of that is still desirable, there is no guarantee that bitcoin can break through the current institutional barriers - and push its value to the “moon” - the crypto dictionary for intergalactic success.

Can you buy anything with bitcoin right now?

At this time, acceptance is still limited. Amazon uses a third-party Purse service to take bitcoin payments for e-commerce products. In 2014, Overstock became the first major online retailer to adopt bitcoin on its platform. And Tesla has also announced that it will soon accept bitcoin as payment for its electric vehicles.

In the world of cryptocurrency, the old lines have been blurred and do not completely separate secure investments and assets.

“We’re moving to a country where the amount contains liquid naturally,” Lewis Cohen, a crypto lawyer at the Bloomberg Crypto Summit on Thursday. “In the past, there was a difference between money and everything else. Now, it's not so clear. ”

What about environmental costs?

The desire for the bitcoin market has led some skeptics to double their criticism of cryptocurrency for its lack of natural friendliness.

The cryptocurrency mine involves complex computer calculations to ensure transactions, which require a large amount of electricity to power computers and keep them cool. Bitcoin is estimated to use more than 127 terawatt-hours of electricity per year, according to a model by the Center for Alternative Finance at the University of Cambridge.

But bitcoin defenders say the fiat financial system as a whole requires a lot of electricity to keep it - when it comes to the energy needs of banks and other institutions with their equipment and staff keeping the dollar high. Researchers at Cambridge University agree that it is impossible to know how much electricity bitcoin uses for a variety of reasons, and more detail is needed to determine its full environmental impact, especially since some bitcoin miners have used renewable energy sources to make their operations more efficient.

So should I end up buying bitcoin?

Increasingly, financial advisers are telling their clients to invest a small portion of their “digital gold” portfolios - about two percent, for example - as a way to break the risk and get a piece of cryptocurrency action.

Nick Carter, the founder of Coin Metrics, said the value of bitcoin depends on "it is highly transferable and flexible". Although it is not yet in use, it is easily accessible - not like pulling a suitcase full of gold bars into your bank.

Tchir of Academy Securities, which calls itself bitcoin agnostic, points out that for people who speak, “most of them are highly motivated. They have… as a stockpile of steroids. ”

Will bitcoin make me rich?

Only time will tell. Although the bitcoin bubble may soon be postponed with general acceptance, the future is uncertain with the world’s leading cryptocurrency. And its popularity could be evidence of a senseless noise, or a real sign of its continued international expansion - and value.

For those who were lucky enough to buy one bitcoin last March for about $ 5,000, their investment has grown nearly tenfold this past year. The same cannot be said for those Beanie Babies collecting dust in your basement.

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