Bitcoins recent price increase has many people excited and some others worried. With anything that goes up, it must come down a bit. A correction is needed although some people say that the correction happened when the price went from $11,600 to $9800 but it went right back. It is currently hovering around $11,944, giving it a market cap of $199.7 billion. In just a span of 8 years, it has done wonders and it is primarily because of its decentralization. Satoshi Nakamoto, the creator of Bitcoin decided that no one is going to own the technology and currency. He made it an open source project with the ability for anyone to fork it and create their own vision of Bitcoin, without interfering with its own Bitcoin network. However, the future of Bitcoin is still looking like it will do very well, compared to what people think.
Recent Price Rise
The price of Bitcoin has gone parabolic recently and this is due to a lot of people realizing what bitcoin is, along with some people having a fear of missing out (FOMO). Even though it is pretty volatile, it has been doing better recently as far as being more stable. Bitcoin is still considered very outdated, slow, with high fees compared to other currency coins that are meant to transfer value. With all that taken into effect, along with the price being so high, many people are thinking of Bitcoin being the next store of value, just like gold. The reason why the price is going up has a lot to do with the it being the first cryptocurrency along with its branding.
Investments money into bitcoin
With the $200 billion it is currently valued at, many of them came from people’s pockets rather than investments. This means that people will start looking into liquidating from the stock market to put more into cryptocurrencies. Tom Lee, the co-founder of FundStrat Global Advisor said even if 5% of all gold was sold to buy into Bitcoin, Bitcoin can go up to over $25,000.
- Gold 2.0: With investors being happy that Bitcoin is being considered as Gold 2.0 along with the high returns it is giving, Bitcoins future looks optimistic. Some millennials even prefer Bitcoin over Gold as a store of value.
Future of Currencies
The future of currency seems like the people are getting power and control over their own money again. Cryptocurrency is challenging the way greedy banks work which is why many bank executives are against it. Bitcoin gives you the freedom of controlling your money, storing your money, where and how to spend your money. It is also going to be easier to purchase something internationally without the need to exchange your currency to the local currency. Some people always feared the one world currency but it doesn’t seem like it is bad thing. Once more adoption takes place, there will be better more leniency. A lot of people also fear these digital currencies because they’re the only form of money that is intangible. You cannot see it, feel it, or smell it which is everything that made cash a form of payment method we loved.
Alex has been very deep in the cryptocurrency space for the last 3 years soaking in everything there is to know. With such a new industry popping up, Alex is constantly sharing about the latest news and updates in cryptocurrencies on CoinPupil. To learn more about him and his work, read here.