Market Research – Bitcoin (BTC) – Download PDF
Overview – Q3 2018
Bitcoin was the first coin to successfully utilize the blockchain concept. It has held the #1 spot in market share since its inception and will continue to in the near future. Bitcoin currently is the most widely known and has the most practical uses. BTC’s virtual currency is created through a process referred to as mining.
BTC is comprised of three unique elements that create value for the coin. The first major component is referred to as blockchain technology. This virtual transaction log, known as the public ledger, is responsible for every BTC transaction. The second element is referred to as the Distributed Ledger. This process allows for updated ledger to be in multiple databases. Thus, creating a more secure and legitimate currency. Cryptography is the last element of BTC. This legitimizes every coin that is mined. Each element has not only helped to legitimize BTC as currency, but has also established the coin has a stable crypto investment.
Price History – 1 Year
Bitcoin is run by a community and has no company behind it, meaning no entity can come in and drastically change the way it operates. This blockchain is kept afloat by miners, or nodes, that continually validate and confirm all transactions. Miners are incentivized by newly minted Bitcoin, and are rewarded, should they be the first to determine the unique block hash. Every individual in the network has a public address and a private key. When an individual owns bitcoin, the amount is just addressed to you on the public ledger. In this sense, counterfeit transactions are not possible because the public ledger shows that it is credited to you. Bitcoin is the primary medium and widely used to gain exposure into other altcoins.
However, with this coin, the cons outweigh the pros. Bitcoins biggest flaws are scalability and speed. Bitcoin was created to roughly process 144 blocks a day (one every 10 minutes) with each block holding a max of 1mb of data. That is only 3-7 transactions per second. As block sizes increase, which they gradually have been, there can be delays in the network if they start to pass 1mb. Increasing the size of the blocks, which has been prompted on many occasions (see Bitcoin XT), could cause substantial issues for the network. Other forks and problems with BTC has caused the creation of Bitcoin Classic and Bitcoin Cash. This coin has been slowly losing market share. While this coin was revolutionary to cryptos and blockchain, its hard to compete with newer coins that have created solutions to bitcoins problems. Not to mention, BTC is very anti-establishment and will not be used by large financial entities.
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