Many sceptics claim that Bitcoin is worthless because it has no intrinsic value and it could disappear overnight because it is electronic and you can’t even hold a coin physically in your hand. I suspect that not many people realise how massive the network is and that the value derived from it is huge.
In this post I want to visualise Bitcoin as a supercomputer that dwarfs every other supercomputer on this planet and has additional properties to strengthen it even more. This supercomputer is running a ledger where millions of people agree on and everyone can buy an entry on this ledger. You can decide what the value should be.
**We will slowly build up a sentence to explain the value of Bitcoin:
Bitcoin is a big supercomputer
The Bitcoin Network, a giant supercomputer
Proof of Work (PoW) is a consensus algorithm that attracts computing power to the network to secure the ledger. When the value of the network grows more computing power will be attracted and the security will increase. The computing power on the Bitcoin Network is enormous, so the network can be seen as a huge super computer, already by far the strongest on earth.
The mining operation in the video above delivers around 1 Peta hashes per second to the Bitcoin network. The entire Bitcoin Network is currently backed by 38.6 Exa hashes, what is 38,600 times the mining farm of this video. Imagine a supercomputer that is 38,600 times more powerful than all the computers you see in the video combined, that is the Bitcoin Network!
The computing power of the Bitcoin Network is 38,600 times more than all the computers in the video combined and still growing!
Bitcoin is a gigantic supercomputer, by far the most powerful on earth
Bitcoin is decentralised
When this gigantic supercomputer was located on one place and owned by one entity there would be a huge risk to be destroyed, compromised or corrupted. Because nobody owns the network and everyone can get involved without permission the network is shared and nobody is able to corrupt it. Furthermore, because the miners and full nodes are spread over the entire world and operated by many different individuals there is no single point of failure or to attack.
Bitcoin is a gigantic shared supercomputer, by far the most powerful on earth that can’t be corrupted and without a single point of failure or to attack.
Millions of people agree on the ledger
Because there are millions of people involved in the Bitcoin Network and all of them trust the security model, everyone agrees on the entries in the ledger because they know it is the ultimate truth (it will need a bigger supercomputer to maliciously change an entry and that simply doesn’t exist). This means that when you have funds on the Bitcoin ledger you will always be able to exchange it for value in the real world because the person on the other side of the trade knows that he will be able too.
Bitcoin is a gigantic shared supercomputer, by far the most powerful on earth that can’t be corrupted and without a single point of failure or to attack and with a ledger where millions of people agree on.
What is the value of Bitcoin?
I would say decide yourself: What is the value of a gigantic shared supercomputer, by far the most powerful on earth that can’t be corrupted and without single point of failure or to attack with a ledger where millions of people agree on in times of financial uncertainty, a corrupted banking system, threat of wealth confiscation, financial surveillance and war? I would say a valuation of hundred billion is extremely low, tens of trillions would be more accurate.
That would be the current price times 100......................................
Disclaimer
This is no financial advice, just my view on the market.
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