The common man watching a slow decrease could feel that Bitcoin end soon, but the opposite is true!
At the beginning of 2014 there were approximately 750,000 users of Bitcoin. Within a year the number has almost quadrupled to nearly 3 million current users and the trend is upwards.
Bitcoin has attracted millions of people and convinced major companies to invest in it. It has also laid the foundation stone for an entirely new industry, which is one of the fastest growing in the world.
The difficulty of mining Bitcoin is rising exponentially. Over the past 12 months this difficulty has increased 44 times and without special hardware Bitcoins are almost impossible to mine. For many people the only way to get them is through exchange. Capitalization of Bitcoin in March 2013 was 143 million dollars. Now it is over 3 billion dollars. Those who began mining it at the right time have become fabulously wealthy.
Although the Bitcoin price has not reached the value of January 2014, it has managed to attract millions of new users and convinced very large companies such as Dell, PayPal and Microsoft to support crypto-technology. It has become a model of success, a dream product, and it has inspired others. Many people have taken the opportunity and started their own currency. The Cryptocoin Chart has already recorded 2858 cryptocurrencies, and every day, there are new ones. Coin Market Cap, which has the most widely respected ranking, only registers 500 of those which are normally traded.
Bitcoin has become the unattainable gold of crypto-technology and its role towards its followers has increased in importance. The past months have brought a rapid expansion of the national development trend of cryptocurrencies. Ecuador has introduced this technology as an official currency, CryptoEscudo, and all indications are that it will soon be followed by other countries. In Europe, a number of national cryptocurrencies have been established which have gained extraordinary popularity, the first one being the German national cryptocurrency, Deutsche eMark.
This development trend, however, faces a major problem – back-up for currency.
Bitcoin has a capitalization of 3 billion USD while the national currency with the largest capitalization is the Dutch GuldenCoin, registered with a value of 283.000 USD. Both the German cryptocurrency Deutsche eMark and the Czech CzechCrownCoin have the same problem. A massive investment for backing up these currencies is needed but it can be easily solved by one simple solution: declare independence from fiat currencies and establish fixed rates of national cryptocurrencies to fiat by recalculating the price based on the actual value resulting from trade in these currencies in Bitcoin market. This system would determine the value of each cryptocurrency in terms of fiat and Bitcoin. In this way Bitcoin could help to back up these currencies.
This approach has a historical parallel to past events that have already proved their worth. After the second world war, the Bretton Woods agreement backed up European currencies with USD. The same concept can now be used for European cryptocurrencies. Upcoming EARC (European Association of Regional Cryptocurrencies) intend to implement this plan. All cryptocurrencies which enter into the system UnitedCoins will get this guarantee for their currencies. Fund raising for the project was recently launched on the servers CrowdFunder.com/UnitedCoins and GoFundMe.com/UnitedCoins where non-accredited investors and ordinary citizens can support the idea.