Bitcoin is no longer considered something new: once the reserve for tech geeks or those wishing to take a punt, bitcoin is now very much a mainstream currency. As a cryptocurrency, perhaps you have yet to come across what bitcoin is, how it works, and what it is worth. If that is the case then now is the perfect time to Learncrypto: as bitcoin continues to soar in value, it has established itself for the longterm and is an investment opportunity that simply can not be overlooked.
Of course, bitcoin is not the only crypto out there: there are the likes of Ethereum, Ripple, Litecoin, Tether, Libra, and Monero that exist too. The difference between these cryptos and bitcoin is that bitcoin has proven its worth: once seen as extremely volatile and a less than safe investment, bitcoin has seen a stratospheric rise in value, way beyond what any stocks and shares could ever achieve.
Back in 2010, a single bitcoin was worth around $0.08. By 2013, the world took a slight interest as the value rose to $13.50. Enter 2021, and bitcoin hit an all-time high with its value surging to $34,000.
What Changed with Bitcoin?
In the early days, bitcoin was non-intelligible to the masses: the idea of a wallet based somewhere on the internet, filled with something that could not be spent, seemed somewhat pointless. In 2021, that is something that has seen a radical change. Bitcoin is no longer some intangible asset: with the likes of PayPal recognising it as a currency, bitcoin is something that can be readily spent. The question is though, why does bitcoin hold an appeal to those who would traditionally trade in stocks and shares?
The very first time that bitcoin was used to purchase an item was slightly underwhelming: 2 pizzas were bought at a cost of 10,000 bitcoin. Fast forward 10 years and that same 10,000 bitcoin would now be worth more than $750,000: that’s a substantial amount of pizza!
Whereas once, bitcoin was viewed as slightly ‘out there’ it has now become commonplace to use the currency in everyday transactions: it is now accepted at over 100,000 merchants and, just like traditional currency, bitcoin can be used at online shops and even casinos.
The Ups and Downs to Record Highs
The biggest criticisms, or concerns, surrounding bitcoin have always been its volatility: the dramatic swings in value meant that it could never be seen as a safe means of investment. Experts can never claim that future dips in value will never happen (forex traders know that this happens with currencies on an hourly basis), but what is now widely accepted is that bitcoin has experienced what can only be described as a breakthrough.
Over the last 3 years, the market that is bitcoin has experienced maturity, As a market matures, it instills confidence in investors. The stories of teenagers becoming millionaires in record time pale into insignificance the moment that serious players enter a market: for bitcoin, that time is now.
When giants such as PayPal begin to recognise and accept, bitcoin as a true currency then this reflects a shift in the view of what was once a bizarre concept. It’s not just PayPal that has given bitcoin recognition: billionaire hedge-fund managers like Paul Tudor Jones have also invested heavily. Add to this household names such as Microsoft, and suddenly bitcoin is a mainstream currency that demands attention.
The Future of Bitcoin
Does the past necessarily dictate the future? Those who have invested heavily in bitcoin would hope not: the temporary rises in value, followed by an immediate, and dramatic downturn, do little to make this crypto seem a safe investment. The events of 2020, and the first month of 2021, seem to make a return of the sporadic ups and downs, a thing of the past.
The instability of the world economy, and the governments that control it, make the decentralised nature of bitcoin ever-appealing: when economies begin to crumble, a safe haven is somewhere that is no controlled by world events. Now that big-name companies have recognised what bitcoin can offer, the volatility of the currency has come to an end.
With maturity in the market and the cryptocurrency being acknowledged by, and invested in, by big-big name players, Wall Street has no choice but to take note of bitcoin. Having previously being dismissed as a fad, the increased growth in its usability, and its exponential growth, mean that bitcoin is set to play a part in the world economy for the long-term.