The day prior to the election Bitcoin increased massively in value due to uncertainty about the election polls and increased likelihood of Donald Trump winning. Money poured out of the bonds and rare metals markets and into the stock market once either computer algorithms or people with shitloads of money decided a Trump victory wouldn’t hurt company fundamentals. During this, the price of Bitcoin fell as well as it funneled into the stock market. In my opinion this might be a good buying opportunity also known as buying the dip. Use your own judgement and do your own research.
If anyone thinks this is just a fad that will just pass by into the abyss, just visit http://realtimebitcoin.info/. Those are real dollars. Unlike the USD which is backed by faith in government, BTC is backed by a network of mostly ASIC systems which sole purpose are to solve Bitcoin blocks which you can read more about here, and unlike the USD, there is a hard-coded limit of 21M Bitcoins which will ever exist. As of right now we’re at nearly 16M Bitcoins mined and it is calculated to take 100 more years to reach the hard-coded limit of 21 million. My view is probably bias because I truly believe the digital cryptocurrency blockchain is the future of our money system, however there are many others including computer scientists who do more research than myself and are better able to articulate the complex concepts presented with such a system. We already do have digital currency but we don’t see it that way, it’s called the US dollar. Most of it is made up of numbers being transferred through computer networks, and what sets Bitcoin (BTC) apart from any other government currency in existence is its decentralized nature via Blockchain. No bank, no government, no single entity can shut it down by design. The entire philosophy behind it is your money is yours, you keep it. Not a bank. I personally keep mine on a physical device called the Ledger Nano S which looks like a USB thumb drive. Little do people know, there could be a few thousand dollars on this little device. Or there might be 50¢. Only I know.
Bitcoin relies on a new technology called Blockchain which is the mechanism that allows you to be your own bank without fear of someone simply stealing your money (if you’re not being stupid about it and take the time to learn). Some of the big boys on the block including Mastercard and Visa are already adopting Blockchain technology with a slightly different implementation to suite their own needs. Blockchain’s own moto is “Be your own bank.®” and I for one love the idea that I keep my money and not some institution or having my money being pooled together with other people’s money to make someone else richer than they deserve to be. This is an extremely ambitious project that has already proved itself valuable in the real world with real applications, and digital currency is only one implementation of Blockchain technology.
For those of you who are more interested in this topic, I refer you to computer scientist and Bitcoin/Blockchain expert, Andreas Antonopoulos in this youtube video with Joe Rogan: