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Bitcoin Price vs. Market Cap and a New All Time High

New Bitcoin All Time High

When writing this post at 5:22 pm on Thu Nov 2nd the spot price of BTC is $7,062 USD.   It peaked at $7,444 earlier today.

The spot price of one Bitcoin seems huge at $7,000, but that is due to the limited supply.

Only 16,660,650 BTC exist as of today.  Only 21,000,000 will ever be created.

This is why Bitcoin is considered a store of value.

Bitcoin is scarce.

The market cap of all BTC today is $110-120B dollars when trading between $7,000-$7,400.

BTC market cap had surpassed $100B for the first time when it was trading for $6,000.

Two weeks later, it has added another $10B in market cap.

There is more big money starting to flow into Bitcoin.

BTC going from $6,000 to $7,000 seems like a massive jump.

Compared to the largest tech stocks it’s not unreasonable for market cap to fluctuate by more than $10B in two weeks.

Some tech company market caps for comparison – 

Apple (AAPL) is worth $868B at $168 per share.   Will AAPL hit $1T Market cap before BTC?

BTC at $60,141 today = $1T market cap.

$1T = One Trillion Dollars.

That’s a lot of zeros.

12 to be exact.

$1,000,000,000,000

Facebook (FB) is worth $520B at $180 per share.

Facebook was worth $104B at $38 per share when it held the initial public offering on May 18, 2012.

Fast forward and Facebook is worth $520B at $180 per share.

A 5X increase in 5.5 years for anyone who invested on the first day of the IPO.

Facebook is still 5X more valuable than Bitcoin.

How soon can BTC overtake FB?

BTC at $32,000 would do it.

Amazon (AMZN) is worth $527B at $1,094 per share

And starting to register domain names like

amazoncryptocurrencies.com

amazoncryptocurrency.com

amazonethereum.com

Microsoft (MSFT) is worth $648B at $84 per share

Google/Alphabet (GOOGL) is worth $718B at $1,042 per share.

These are the tech giants who BTC will compete with for future investment dollars.

Why is Bitcoin surging like this?

Possibly because of the upcoming Segwit2X fork scheduled for mid-November.

Possibly because of China, hyper-inflation, new record highs, FOMO, etc..

How much farther can it go?

We shall see!

-Bitcoin2040.com

P.S. HODL!

P.P.S I highly recommend the book Irrational Exuberance: Revised and Expanded Third Edition

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google search trends buy bitcoin

It looks like Bitcoin is about to overtake Gold in terms of Google Search Interest.

The long-term trend for ‘buy gold’ is a slow steady decline. The long-term trend for ‘buy bitcoin’ is up and to the right. When the price of Bitcoin is peaking, so is overall search interest.

This is important because Google search interest for bitcoin has correlated with the price of bitcoin in the past.

Traditionally people buy Gold as a store of value. There is around $7 trillion USD worth of Gold in the World.

More people are now considering Bitcoin as a store of value. There is just under $100 billion USD worth of Bitcoin in the World.

When you think about the qualities that make gold a store of value, bitcoin is far superior in many regards.

The times are changing. This is a David vs. Goliath story in the making.

-Bitcoin2040

Update Nov 3, 2017 – 

‘buy bitcoin’ HAS overtaken ‘buy gold’ in search interest.

And Google predicts more upside.

buy bitcoin vs buy gold nov 3

Google search interest for ‘buy bitcoin’ vs ‘buy gold’ on Nov 3, 2017

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The Safest Bitcoin Wallets in 2017

bitcoin wallet security

In less than eight years, Bitcoin has managed to cement its position as a global currency. Its rising popularity and increasing adoption are due to the features and benefits associated with its decentralized system.

More importantly, the new digital currency is increasingly being seen as a legitimate form of investment and store of value.  This is partly due to its legal acceptance across some major jurisdictions around the world like Japan.

Bitcoin, as a digital currency, is subject to many cybersecurity threats. It is essential to understand that the bitcoin network by itself isn’t vulnerable to cyber-attacks, but rather the method of storing bitcoins can be inadequate and result in security breaches.

In this article, we will talk about different types of bitcoin wallets and how to keep your digitized wealth safe and more importantly, off the grid.

Understanding Risk, Security, and Bitcoins

Take cash for instance. Cash can be stored in a bank as well as in a wallet. Cash stored in our bank accounts is entirely safe. Even in the case of a bank robbery, we know that our money would be completely safe.

At the same time, cash can be extremely vulnerable to theft if it’s in our pocket or stashed inside our homes. The same goes for cryptocurrencies or bitcoin. If the reward is worth the risk, it will naturally, attract unscrupulous people who will devise new and ingenious ways to steal our money.

The Digitization of Money

What was initially a question of, “if bitcoin could replace dollar” has undisputedly turned into a matter of when rather than if. It is becoming increasingly evident that all forms of currencies will exist in digital form. Therefore, it is now time we start using more secure types of digital wallets that are not accessible over the internet and thus, less likely to be subject to cyber theft. Such wallets are known as cold-storage wallets.

Just like everyone else, I too was a skeptic when I first heard about bitcoins a few years back. However, after using cryptocurrencies, I have no doubt as to the fate of physical currency. And as a crypto-user, I had to invest time and research into various cyber-security measures to keep my money safe. Hence, the information I will provide in this article is based on my personal experience and knowledge regarding some of the safest bitcoin wallets that are currently available.

Trezor, Ledger Nano S, KeepKey and Bitbox are four of the most widely used hardware bitcoin wallets in 2017. These four wallets offer the most secure way to store bitcoins and other cryptocurrencies. And, their use has become ubiquitous among experienced bitcoin users such as vendors, investors, miners, traders, etc.

Before we look at the specifics associated with each of the wallets, let’s briefly discuss what bitcoin wallets are.

What is a Bitcoin Wallet?

A bitcoin wallet is a digital file that contains a unique key-address. These private-keys are strings of long randomly generated characters that represent money held inside the wallet. It is a form of unique identifier, which allows us to use our money by recording transaction in the blockchain or the shared ledger.

The private-key allows us to access a number of bitcoins associated with the private-key recorded on the shared ledger. This is why our private-key addresses must be protected at all times. You can see how the ledger works in the illustration below.

Even though the blockchain is absolutely impregnable, our personal wallets, however, can be hacked if hackers get access to our private-key addresses. This is why it is important to keep our key-addresses in a separate hardware wallet that simply cannot be hacked due to its inability to directly connect to the internet. It’s the same as keeping our card-card information safe and away from prying eyes.

What Makes an External Bitcoin Wallet Secure

An external bitcoin wallet is the only way to secure bitcoins from the threat of hacking. A hacker can only infiltrate a computer if it is connected to the internet. If our private keys are held in a physical bitcoin wallet, there is simply no way to access it without physically breaking in and stealing the hardware wallet and even that won’t be enough as there are safeguards installed in these hardware wallets to counter the threat of physical theft.

To use bitcoins stored in a hardware wallet, we would have to connect it to a computer and then access it. In the case that a hacker is lucky enough to get access to our computer at the exact same time as our hardware wallet is connected to it, the hacker would still be unable to steal the bitcoins.

The reason being, there is a two-way authentication method that requires the user to physically press a transaction button on the hardware wallet. The dual layer of protection makes it practically impossible for a hardware wallet to be remotely hacked. Some wallets even offer the option to create a password to access the device, which would require the user to use a password after connecting the wallet to a computer.

Lastly, if the hardware wallet is lost or stolen, the owner of the wallet can simply deactivate the device remotely and retrieve the bitcoins with a click of a button. Thus, it is pretty much impossible to for hackers to steal bitcoins from a hardware wallet.

What Are The Most Widely Used Bitcoin Wallets

Bitcoin users have a number of options when it comes to bitcoin wallets. The most secure form of bitcoin wallets are known as external cold-storage wallets. The term, cold, is used to refer a wallet’s inability to directly connect to the internet.

The other type of cold wallet is the paper wallet, which is essentially a piece of paper with the private keys printed on them. The problem with a paper wallet is that it is just as safe as a credit-card. If someone gets their hands on a paper wallet they can access all of the bitcoins stored within it.

Trezor Bitcoin Wallet – The Bitcoin Safe

Trezor Bitcoin Safe, by Satoshi Labs, is a highly secure and trusted bitcoin wallet, which provides a degree of security that simply cannot be replicated using a computer. It is an offline transaction signing device that uses a small screen to visually depict transactional information.

The device has been subject to a security breach in the past. However, recent improvements have made the device virtually impregnable. After previous issues came to light, the Trezor’s development team expanded the device’s internal cryptographic encryption to cover every single aspect of the device.

In the event that the device is stolen or lost, it still wouldn’t be possible to hack into. And the owner of the device would be able to restore the wallet’s data onto another bitcoin wallet through its remote-restore feature.

Moreover, if your computer’s security is already breached, your device would still be secured while connected to the computer. This is possible due to another security feature that involves the generation of a random pin number for every single use, thus, making it impossible to hack into.

Trezor Bitcoin Wallet supports a number of widely used cryptocurrencies such as bitcoin, litecoin, DASH, Zcash Bcash, Ethereum and ERC-20, making it an excellent choice for users of multiple cryptocurrencies. However, the wallet lacks some of the more advanced operational features that expert-use might demand.

Ledger Nano S Cryptocurrency Bitcoin Hardware Wallet

In addition to being considered as one of the most secure hardware wallets for bitcoin, ethereum and other altcoins, it also offers a highly interactive and popular user interface. All transactions made with the device are displayed on its display screen and it requires physical verification for each and every transaction. There are two buttons available on the small device, which allows its users to navigate through the user interface.

Users of Ledger Nano S are required to create a pin code using the device itself. It is important to note that the device does not need to be connected to a computer in order to set-up. Users have to enter the pin code in order to access the device, creating an additional layer of security. However, that is not all. The device also has a secret phrase question and asks its users to enter a specific word from the phrase for further authentication.

As mentioned earlier, the wallet offers one of the most advanced and easy-to-use user interface. The seamless user experience allows for an unparalleled electronic banking experience using cryptocurrencies. Users can also use computer based software to enter transactional information and connect the device only when the transaction has to be made. As of writing of this article, there is no smartphone app for the device. However, it is only a matter of time before one will be made available.

The only drawback we could find about Ledger Nano S involves the user interface for ethereum management. But even that is soon to change with one of the upcoming software updates.

Bitcoin2040 recommends the Ledger Nano S wallet to secure your Bitcoin

KeepKey: The Simple Cryptocurrency Hardware Wallet

KeepKey bitcoin wallet is also one of the most widely used hardware wallets. It offers a number of unique security features that makes it a leading competitor in the cryptocurrency security solutions arena. KeepKey is an incredibly secure device that utilizes an encryption pin code through its touchscreen. It creates a new randomized pin code for every instance of use. Meaning, the pin generator is paired with a hardware wallet that requires a new randomly generated pin code to access the wallet.

The device offers a recovery mechanism in case that the device is lost or stolen. It allows the user to create a 12-word recovery sequence during the initial set-up. If the device is lost, the owner of the device simply has to enter the recovery sequence on a new device and all of the bitcoins would be recovered without any real risk to the access keys.

Bitbox Bitcoin Wallet Device

Bitbox is a recent addition to the range of hardware wallet that is commercially available to cryptocurrency users. Since it is a new entrant into the market, it is also the cheapest option available to users.

The device offers Tor and Tails OS compatibility for the users looking to maintain anonymity along with security. At the same time it also offers compatibility with the two most widely used operating systems, iOS and Android, meaning, even the casual users can use it without worrying about a learning curve.

Since the device is rather new, it is difficult for me to personally go into too many details as I have yet to use the device myself. But if we are to look at the feedback some of its users have given, there is no doubt that it is an extremely simple but highly secure device that will appeal to most of the new bitcoin users. However, since the device doesn’t offer compatibility for multiple cryptocurrencies, it might not be a valid option for altcoin users. Hence, it is an exclusively bitcoin-only hardware wallet. Ethereum is the only non-bitcoin cryptocurrency that can be used with the Bitbox.

The Bitbox also has an edge when it comes to the use of micro-SD card, which acts the backup for the wallet. In the case that the wallet is lost or stolen, the bitcoins can be restored using the backup micro-SD card.

The Final Verdict

For the vast majority of cryptocurrency users, Trezor Bitcoin Wallet and the Ledger Nano S are considered as the most secure hardware bitcoin wallets. As a cryptocurrency user myself, I value nothing more than the security of my data in general and the security of my crypto-based wealth in particular.

As Bitcoin and other cryptocurrencies grow as a major form of global currency and financial asset, it makes sense that virtual and cyber security is taken serious and proactive measures are taken to safeguard our data, as well as our wealth.

Despite the proliferation of security-related products and services, there are still a large number of security breaches that unduly tarnish the reputation of cryptocurrencies. The reason I am inclined to say unduly is due to the fact that, most of the cases involving security breaches are primarily due to poor and inadequate security measures on the part of users and not because of some technical flaw in the cryptocurrency. This is, particularly, why hardware wallets are of such importance, as it even provides security and safety against the most basic human error such as misplacing a wallet.

If you enjoyed this article on bitcoin wallets and found it informative, please consider signing up to my weekly newsletter. It will help you stay up-to-date on everything related to bitcoin and ultimately ensure the safety of your cryptocurrencies.

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What is The Meaning of Bitcoin?

One of the most common questions we try to answer is “What is Bitcoin?”  There isn’t a clear definition and if you ask 10 people you might get 10 different answers.  It’s like asking someone “What is the Internet?”.

This question will have different meaning for different people.

We have collected the 10 top quotes which try to answer the question

What is the Meaning of Bitcoin?

  1. Bitcoin is a network, not a coin.
  2. Bitcoin is payment system and a currency.
  3. Bitcoin is an Internet-wide distributed ledger.
  4. Bitcoin is an experiment in the separation of money and state.
  5. Bitcoin is completely decentralized with no server or central authority.
  6. Bitcoin is a protocol, not a currency. Currency is just the first application.
  7. Bitcoin is a new electronic cash system that’s fully peer-to-peer, with no trusted third party.
  8. Bitcoin is digital money used for secure and instant transfer of value anywhere in the world.
  9. Bitcoin’s distributed asset ledger is the most important Computer Science invention of the century.
  10. Bitcoin allows the free market of ideas being flooded with innovation without the need to ask for permission

Related Articles –

 

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Welcome to Bitcoin 2040

Hi. I’m Lucas and in 2014 I discovered bitcoin and became obsessed with the technology.

Since then, I’ve worked to become one of those objective, independent, and strong voices.

So far I’ve published three websites, several research reports, and have made several freely available educational videos explaining the technology.

I’m passionate about this technology and the ways it can be used to give choice to the choiceless, voice to the voiceless, and power to the powerless.

If you’re here, you’ve probably seen some of my work already and you realize how much time, money, and effort goes into producing original content with an independent perspective.

What you might not know is that almost all of the content I produce is both free and open-source, and will remain so forever.

It’s available under creative commons licenses; anyone can read and share the content for free. More importantly, anyone can re-use, mashup, translate, re-invent and even commercialize this work.

I use creative commons licensing because I believe in the commons, the community.

I believe this technology can be a great equalizer and that people all around the world can become empowered by learning about this technology – we can change our own communities and build new organizations that can benefit us all.

If you share this vision, and can afford to support it, then please do so.

Consider becoming a patron if you:
– have learned about bitcoin and open blockchains from my talks or articles
– have sent my work to a friend, colleague, or “naysayer” to teach them about this tech
– are tired of the corporate agenda driven talks that seem to dominate the industry
– value free educational resources for yourself and the community
– appreciate my work and want to see more of it

Your support, at any level, helps me to continue doing this important work.

Thank you,
Lucas @ Bitcoin2040

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