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Bitcoin Investing For Beginners 2020: Can Bitcoin Be Shut Down? A Naysayer’s Guide to BTC

We’re going to talk about Bitcoin, investing for beginners and we’re looking at can Bitcoin be shut down. This is a naysayers guide to Bitcoin. So should I buy Bitcoin now or wait we’re going to give you ideas to help you take profits and avoid losses? Can we get this article to 99 likes smash that, like button, it really helps us out.

I’r not a financial adviser. What you’re about to hear this is not financial advice. This is my opinion, so the first thing we’re going to look at is the Bitcoin market. Now, today is 6:38 in the morning Central Standard Time, and it is April. 27Th. 2020. It’s a beautiful Monday. So right now bitcoin is trading at seven thousand, seven hundred and nine dollars. It’s up almost 1 %, just shy of 1 %, and you can see here that the Bitcoin dominance is 64 % and changing as we speak.

Now. The dominance is something that we’re going to talk about a little bit later in this article. It becomes part of our subject, so we may even come back to this slide. Now the subject of this article often oftentimes my articles, we try and take three or four different articles. This article, I’m going to focus on just the one can Bitcoin be shut down. This is a naysayers guide to BTC. The Bitcoin network has been standing strong for more than a decade and it would take a highly coordinated effort from competing players to bring it down.

Bitcoins future has many possible outcomes, but death is among the least likely of them all kind of like the image here. With a gravestone with Bitcoin on it, so key takeaways Bitcoin has been running 24/7 without incident from more than 10 years straight. There are more than 10,000 Bitcoin nodes standard scattered all across the globe, and governments can prohibit Bitcoin, but they cannot kill it.

So, let’s get back to the 10,000 Bitcoin nodes. The way Bitcoin runs is somebody sets up. What’s called a node, a node is they’re running a computer, that’s connected to the internet and on that computer is running software that makes the Bitcoin network exist. So, in order to really destroy Bitcoin, you have to shut down all of the existing nodes. If there were no nodes out there, that was running the Bitcoin software, then Bitcoin would cease to exist, but because there’s thousands of nodes scattered all over the world, it makes Bitcoin actually exist and gives it the possibility of thriving the people who wrote the Bitcoin software Made it what’s called open source and that simply means that anybody can download it, install it on their computer and run it at no cost to them.

You don’t have to pay Microsoft, for example, in order to buy the software and run it. You can just run it without paying any specific, individual or entity. So Bitcoin has been dealing with skeptics and naysayers for more than a decade when Satoshi Nakamoto first shared his life’s work publicly, it was met with little enthusiasm. Instead, the feedback was mostly critical and listed all the ways the idea would fail.

You ever had a good idea and everybody started telling you how come this is not going to work well. Satoshi Nakamoto went through the same thing since then. The protocol is improved and hundreds. If not thousands of companies have been built on Bitcoin. In fact, you know when you say that, did you know that Microsoft Starbucks and the company that owns the New York Stock Exchange teamed up spent half a billion dollars and four years building? What’s called that be a KKT? The backt exchange was built by those three companies, Microsoft, Starbucks and the company that owns the New York Stock Exchange.

All three are multi-billion dollar companies and they’ve invested half a million dollars into creating a Bitcoin exchange and now they’re soon going to be releasing an app for your phone. That will let you buy and sell Bitcoin along with a whole bunch of other things, and so it’s actually quite interesting so when they say that a lot hundreds, if not thousands of companies have been built on Bitcoin.

That’s just one example. There are so many examples of other companies that are built on it. Still. The criticism remains constant high profile, economic economists, bankers investment, fund managers, everyone except the Queen of England, really have voiced their opinions and prophesized bitcoins inevitable demise. But the interesting thing is is that to date none of them have accurately democ predicted demise of Bitcoin one decade and 115 exha hashes of hash rate per second and roughly a hundred and fifty billion dollars a market capitalization later, and it can be said that such Cricket critics stand corrected.

Well, let me break this down a little bit. So a hundred and fifteen exa hashes, that’s the measure of the computing power. That’s currently mining Bitcoin, it’s a combination of the nodes and then also includes the hash rate of miners, and so miners connect to nodes and and create the entire Bitcoin network and there’s a way that they measure that processing power, that computing power and that measurement is Called EXA hashes, so, let’s for a moment, take a look at the chart, so this is the last 1 year.

This is the one year chart of EXA hashes and you can see how it starts here. At 45, EXA hashes a year ago, hit a peak of a hundred and twenty-one and then at the same time that everything crashed as far as the stock market and other assets, including the computing power on the Bitcoin network, also crashed. And then you can see that it’s come back up a hundred and eighteen versus a hundred and twenty one.

So it came very close to this previous high and then dropped down just a little bit over over the recent few days and weeks. And so I want to share with you a couple of other charts, so this is the one-year chart. Let’s take a look at what it looks like over the last three years and so three years ago the computing power on the Bitcoin network was 3.9 x, a — hashes and recently it peaked at 121, EXA hashes, and so that’s a I don’t know how many Times that is it’s not quite a hundred times because it would have to have been at one point to for it to have been a hundred times, but that’s a significant increase in the amount of computing power.

Think of it this way, every time it goes up. Somebody else has added another computer to the Bitcoin network and every time you add another computer to the Bitcoin network, that’s one more computer that would have to be turned off in order to shut down the Bitcoin network, and so this EXA hash, this hash rate measurement, Is really in a way to measure all of the processing power, because one computer has a lot of processing power and another computer has only a tiny bit of processing power.

But every single computer adds up together to give us a total number, and I don’t want to muddy the waters too much, but there’s lots of different ways that miners use equipment to mine Bitcoin. Some of them are computers. Some of them are what’s called graphic cards, so in your computer there’s a card that drives the monitor and they call that a graphics card, and so some people use graphic cards in order to mine Bitcoin, and that adds to the hash rate.

Another thing that people will do is they’ll buy, what’s called a sick mind asi see. I see I don’t remember how to spell it. The bottom line, an ASIC minor, is an application-specific integrated circuit, and that means that they built this small box they’re, usually a little bit smaller than a shoebox in size for an ASIC minor and those things have chips in them. That the only purpose for that chip is to mine, Bitcoin or mine, whatever cryptocurrency it was built for and those chips are anywhere from 30 to 40 times faster than using a graphic arts.

Graphic cards were at one point, one of the fastest ways to mine Bitcoin provided the most hash rate to mine Bitcoin, but ASIC miners came around. I don’t know if it was three years ago or five years ago, but several years ago, ASIC miners started becoming more and more popular because they had more hash rate and you could buy them for a lower price than you could get comparable hash rate out of Gpu miners out of graphic card miners, and so anyway, the bottom line to this whole story is: you can see how the hash rate has been growing over the years.

In fact, if we click on this link here for the all-time graph, you can see how it was for for many many years. It was significantly less than one. I mean all the way through here, it’s less than one tera hash and then in here around August 2016. In fact, here’s where, from April of 2016 to today it’s increased by 100 times to get to that 121 EXA hash. So anyway, the bottom line is is because of the hash rate.

That’s measuring the amount of computing powder around the world makes it extremely difficult to shut down all of those computers, especially when I mean they’re, located and virtually very close to every country around the world, and so just makes it quite difficult to shut down the entire Network, so what could possibly kill? Bitcoin one strategy is the so-called 51 % attack, where a malicious entity gains control over the majority of the networks, hash rate and effectively takes over the system.

51 attend 51 % attacks are one of the most legitimate threats to Bitcoin. The centralized manufacturing of mining equipment can lead to some bad outcomes, but the most dangerous scenario is one where there is a concentration of hash power. Specifically, one company may control more than half of the hash power on the network. Consider the cost of executing such an operation at the time of this writing.

It costs more than half a million dollars per hour to sustain a 51 % attack on Bitcoin, and so what are they? What do it? What does this really mean? What they’re talking about is, if you bought enough computers, that your total hash rate was greater than 51 % of the hash rate on the entire network. This would allow you, because you had control over it, to rewrite some of the data in the network, thereby granting yourself a lot of Bitcoin and by giving yourself a whole bunch of Bitcoin, all of a sudden that makes you wealthy or wealthier, but the point that They’re, making here is that the cost, in order to do that is, is very, very significant.

In fact, according to this website, which is crypto, 51 crypto 51 says that a 51 % attack on Bitcoin would currently cost 847 thousand dollars and 98 and 988 dollars for a one hour attack it’s. In other words, it’s almost a million dollars per hour. In order to attack the network, but that’s not the only hurdle you have to overcome not just having more hash rate, more hash power than anybody else in the world, but let’s dig into this a little bit further.

The attacker would also need to coordinate all of these features without any one noticing, with over 10,000 Bitcoin nodes operating around the world, it would be near impossible to sneak a 51 % attack by so many observers. In other words, you may be able to create enough hash power to have more than 51 % of the total hash rate on the Bitcoin network. The problem you’ll have is all of the other 10,000 nodes operating around the world.

Going hey, wait a minute. Somebody just did something they shouldn’t be doing, and if all these other people noticed, then that that destroys your opportunity for making money and it destroys it for several different reasons. One people would stop using the Bitcoin network because you or whoever the person was that had dial, that hash power hacked it and altered it, so that they had an advantage. And then the second thing is: is that all these people running these nodes would simply merge off a new version of Bitcoin, deleting the records where you had moved that money to your own account.

Thus, deleting all the advantage that you spent all that money getting and they would just fork off Bitcoin into a brand new fork and and start mining it. In fact, if you look at look back over history, a lot of the not a lot but a number of the existing cryptocurrencies existed because they are Forks where they took the existing Bitcoin code and they made some tweaks and they modified it a little bit.

And then they created a brand new Kirke cryptocurrency, but that cryptocurrency was based off of the previous software and the previous blockchain database that was used for Bitcoin up to the point in time where they forked it off of the existing network, the existing blockchain and database. That runs the current version of Bitcoin, and so not only would they have the issue of trying to make sure that they had 51 % of the power, but they also really need to do it in a way that no one else would notice it, which is Pretty highly unlikely, given that there’s over 10,000 nodes now this picture doesn’t give you a definitive conclusion on every single country that the bitcoin is in, because some of these dots are so small that they can’t actually cannot actually be seen in the map.

There’s more than 98 countries around the world that currently have bitcoin nodes, but here’s another thing: if you were running a Bitcoin node in a country where you may be breaking some of the laws, then you’re going to use a VPN network to hide the physical location Of your soft of your hardware and thus you’ll, look like you were in mining from a different country when the reality is is maybe you were located in a country that was not so friendly to Bitcoin and you just chose to hide it.

So there’s there’s a likelihood that many of these countries that don’t show any Bitcoin nodes actually do have Bitcoin nodes, because the owners are actually hiding the fact that they’re in there in a Bitcoin node. But you can see by these larger circles and the darkness of the circles where a lot of the hash hash rate or Bitcoin nodes are located. We can see a lot in the United States. We can see a lot of them in in Europe and around the European Union.

We can see quite a few down around Hong Kong and Singapore and other Asian countries and so and then that we can see a number down here in Australia and there’s quite a number throughout China in different areas throughout China and even into Russia and so they’re. All over the place, these are that kind of the Russian nodes, and then a lot of the Chinese ones are down in this area. So just a large log Bitcoin has built up a huge network and it’s because of that huge network that the entire system has a lot of security.

Once the alarms had been rung around social media, many users would begin selling their holdings recovering the five hundred and sixty five hundred and fifty six thousand spent on attack. The network thus becomes difficult and that figure has changed to over $ 800,000. So once people started selling off driving the price down there, the people who did the hack would have a tough time recovering the money that they spent in order to hack the network.

Bitcoin core developers would also fork the protocol around the attackers before this scenario ran its full course concluding. It becomes quickly. It quickly becomes clear that it is. This is reasonably in an ineffective venture, assuming that the attacker wants to overtake the network for profit. What if they have no ulterior motive except to destroy Bitcoin, a 51 % attack still wouldn’t be the way to go, even though bitcoins price would undoubtedly suffer damage in the short run, bitcoins network can easily mitigate such threats and continue to operate with minimal incident.

So can’t beat Bitcoin be banned by different countries. Absolutely there’s been countries out there, all along that have banned it. China is a great example of that. China has had this love-hate relationship with Bitcoin. They love the miners, they hate people, doing exchanges and buying and trading and putting their money and finances into Bitcoin. And so, while it’s legal to mine, Bitcoin, it’s illegal to buy Bitcoin, which is just a strange thing, sure it can there’s nothing stopping regulators in any country from around the world from prohibiting the use of Bitcoin in case there are any constitutional considerations.

Regulators can still find ways to make Bitcoin a cumbersome and unappealing to use as possible, but can regulatory agencies ban destroy Bitcoin? No, not really, it would undoubtedly have some short-term price implications, but the network and the protocol would remain intact again. They would just literally have to go all around the world to all these different countries, shutting down the nodes and order to actually achieve that, and so, while they may be able to make it ban, it make it difficult for people to buy it.

It would affect the price in a for a period of time, but the end result is that the protocol would remain intact. Some experts in the field, like the author of the Bitcoin standard, have even argued that the banning the top cryptocurrency could have a positive effect on adoption. A social phenomenon known as the Streisand effect attempting to hide, ban or even cover something up. Inadvertently draws more attention and interest from onlookers, and so you know it’s kind of like trying to ban drugs.

Every country in the world has laws against drugs, and yet they can’t seem to completely stop drugs from getting into their countries and from people actually purchasing those drugs. So what about Bitcoin competition theoretically possible, but highly unlikely bitcoins appeal, doesn’t originate from its technological superiority over cryptocurrencies on the market. Many would argue that Bitcoin isn’t technically superior and that other cryptocurrencies have better features, including faster transactions and greater flexibility, and that’s definitely true.

There’s other cryptocurrencies that have been created since Bitcoin began that in many different ways have better features. Greater flexibility are much faster transactions, etc, etc. But the reason why bitcoin is still King out there is simply because so many people are using it. It’s a more of a what’s called a network effect and what a network effect talks about is sometimes the best technology is not the technology that everybody uses.

Let’s take Windows is an example. When Windows came out in the 90s Windows was not the best operating system out there, there were other operating systems that existed that were actually in many ways better than Windows. In fact, then, better than microsoft’s um disk operating system do s. Msd OS was the operating system during the 80s for Microsoft, and then they came out with Windows and when Windows first came out in the 90s, it was very, very clunky.

It was very difficult and cumbersome to use Apple’s. Software was much much better than Windows, but here’s the catch Windows, Microsoft’s operating system started as a as the software that IBM personal computers were running on in the 80s and because of the name of IBM backing those pcs and Microsoft. Writing the operating system. For those pcs, Microsoft gained market dominance, in other words, 80 %, 90 % of the computers out.

There ran on Microsoft’s operating system and because it was such a large number, it wasn’t any longer about which one was the best it was about which one does everybody use, and so, as a result, because Microsoft had such a market dominance, it continued on and Windows Is the most used computer operating system out there, even though it hasn’t always been the best? So it’s not always about being the best sometimes adoption or the number of people using something using a particular thing is far more important.

You know even take a look at today. We have CD players, but there was a day back in the 90s, where there were two different article formats. There was beta and VHS, and so when you went to Best Buy, you might buy a beta player in order to buy movies and play them at home, or you might buy a VHS player to play VHS tapes. Now the tapes that worked in the beta machines. Don’t work in the VHS machines.

The problem was: is that VHS, even though wasn’t beta was better quality beta had a better image quality beta was longer lasting. There were a number of good things about beta that made it a better two ecology than VHS, but the people who made beta charge so much money that beta never gained enough adoption. The people who made VHS they knew that their technology wasn’t as good, and so they just simply made it cheaper and because it was cheaper, a lot more people bought the VHS machines a lot a lot.

More manufacturers made the VHS machines, because that was another thing about Veda. Is they locked it in, and so they were the only company that sold it. That today, you can’t find a VHS or a betta machine out there, because both of them have been replaced by CDs and DVDs, but here’s the important thing to notice from that. It was more about adoption that made it the dominant player and not about which one was really better, and a lot of people miss that in their cryptocurrency conversations they’re so focused on which one is the better technology that they miss.

The fact that the one that has the greater adoption is oftentimes, the one that rules the roost, not because it’s better but because everybody uses it and right now, bitcoin is the one that has the 64 percent adoption. The vast majority of people who have investments in cryptocurrency have it invested in Bitcoin. In fact, earlier I was talking about the backed exchange. Bak KT backed has only one cryptocurrency on it.

Now, there’s over 2000 crypto currencies out there, but if you were a institution because backed only serves institutions, and so you have to have a lot of money in order to just be a customer on the backed exchange, you know if you have $ 100 you’re, not Going to be a customer for the backed exchange and the only cryptocurrency that the backed exchange offers is Bitcoin, which is just to me almost mind-blowing.

Why would they only offer one cryptocurrency? You would think that they would have a dozen or so, but that’s the way. It is today, I imagine, that down the road, the backed exchange will actually offer more choices in crypto currencies, so bitcoins value proposition lying somewhere else entirely. Bitcoin is the scarcest most widely adopted and most secure cryptocurrency on the market. Having enjoyed first mover advantage, its network effects are now the strongest which gives it an almost insurmountable edge over the competition network effects is just a fancy term to say: hey lots of people use this sucker, alright, so users still want Bitcoin.

Bitcoin has many layers of redundancy and it’s resistance to many types of attack. It cannot be shut down, hacked regulated out of existence or compromised for Bitcoin to die. It would have to be more of natural causes. People would have to stop using it because there are better, more secure and more practical options for storing value on the market. As for now, with 64 percent market dominance, bitcoin is king, and so just like VHS and beta, you can’t go and find anywhere.

That sells those machines and the article stores that used to rent those tapes have long gone they’re out of existence. Today, you can’t find a article store to rent a VHS or rent a beta tape in order to read a particular movie. It’s going to take the same sort of thing with Bitcoin for it to really disappear. It’ll be the sort of thing where something comes out: people start using it and stop using Bitcoin and over time.

The dominance that we see here just disappears and becomes something else entirely, and that’s what’ll cause people to shut down all of their machines and for the hash rate to drop back down to nothing is it’ll it’ll, be more about people just stop using it, and so We’re at this particular time, based on things like the hash rate over the last. Even if we go back to the three-year hash rate, we can see how it’s been just grown and grown growing growing quite significantly.

Unless that stops, Bitcoin is here for a long time. You know the long term it’s here to stay unless people stop using it. So that’s the article today again, I’m not a financial advisor. This is not financial advice. This is my opinion. How can I be of service to you? Do you have any questions? Do you have any things that you said you just you you want to talk about? Do you have anything that you’re curious about, or do you disagree with what I’ve said? I would love to hear your polite disagreements because look hey you know things.

I don’t know. I know things you don’t know and when we share what we know together we’re going to grow smarter together, I want to grow smarter together with you. So hey. Please share it. What you know down in the comments below in the meantime like subscribe and huddle, and I hope that you have a fantastic day –


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