Initially disregarded as being fake internet money or a libertarian movement to overthrow modern capitalism, Bitcoin has slowly but surely risen through the ranks. Claimed by critics as having no inherent value and massive fluctuations in price per coin, the digital asset rewarded its first adopters while filling its early doubters with regret.
The world’s most popular has become a force in global finance today and is beginning to pick up even more steam. Today, Bitcoin has managed to soar to new all-time highs surpassing the $63,000 mark. It is spreading through the economy like wildfire with many suspecting it to be on the verge of an exponential surge in demand.
The Road To The Limelight
Bitcoin was introduced to the world as open-source software in 2009 by its mysterious creator going under the alias, Satoshi Nakamoto. It drew its motivation from the 2008 economic crisis, specifically the decision to print more money for the rescue of banks from the credit and stock market crisis of the real estate bubble.
At the time of its inception, it was met with heavy criticism. Worth only a couple of cents during its early days, no one could quite predict that it would soon take the world by storm. The digital asset didn’t really make any striking headlines until 2017 when Bitcoin went on a bull run and was finally able to make its way up the ladder.
The bubble saw Bitcoin soar to record highs approaching $20,000 per coin recording staggering growth in a span of only a few months. This had several skeptics and potential investors intrigued, wanting to try out their luck with this new virtual currency. However, this bubble quickly popped soon after in 2018, causing many to discredit it and view crypto as a new form of gambling rather than an investment.
Financial analysts continued to warn that anyone that allowed themselves to be willingly swept away in the strong waves of the crypto world would soon find themselves in deep waters, unable to get back without significant harm. Consequently, many investors and traders became gun-shy of betting on the cryptocurrency and wondered if Bitcoin would be able to recover from such a blow in the confidence instilled in investors regarding this cryptocurrency.
However, the tune of Wall Street seems to have changed since then. Bitcoin carries an extremely volatile nature and while it has been the cause of some unnerving headlines, it is also the underlying reason why investors keep coming back to it.
Taking The Center Stage
The Bitcoin hype, however, never truly dies which has become much more apparent especially over the last year.
With the global economy was devastated due to the Covid-19 pandemic, many predicted Bitcoin to crash and burn as almost all other assets were observed to take a hit. But this period was, in fact, the time when shined, gradually surging to new sky-high values despite the economic turmoil and currency devaluation. Being viewed as an effective hedge against inflation, the world was finally able to recognize the true potential stored within Bitcoin. Many see it as a possible alternative to traditional fiat money while others have been drawing parallels to gold, calling it the “digital gold“.
What has helped push this virtual currency towards a meteoric rise has been the narrative that Bitcoin does not conform to the rules of inflation. The founding code of Bitcoin includes a limit to the number of coins that can be mined, capped at 21 million. Currently, about 18.6 million coins have already been mined and as more get mined, Bitcoin will become even scarcer. This high demand and low supply help Bitcoin retain its value.
Another contributing factor to the growing Bitcoin buzz is the ease in trade and being accepted as a means of payment widely. Many institutional investors have been getting in on the Bitcoin scene such as Tesla, Square, PayPal, MicroStrategy, and many more. This rise in institutional interest has helped push the narrative of Bitcoin being viewed as a legitimate financial currency, further and regain any confidence that may have been lost.
Trading Bitcoin has become much easier as well which has invited herds of hungry traders looking for high returns. Coinbase has just recently launched on NASDAQ making it much easier for people to bet on cryptocurrencies. Furthermore, trading platforms have become a safe haven for most novice investors, helping them make profits short-term changes in Bitcoin’s value. Bitpal is a great trading platform that offers its users an easy and lucrative way to profit from crypto booms. You can visit the Bitpal website for further information.
Bitcoin has been basking in the glory of massive investor interest as it keeps surging, smashing previous record highs, and moves even closer to mainstream acceptance as more and more institutional firms chime in. It has recorded an impressive run so far with its value growing 11-fold this year alone.
While it may have had rocky beginnings, Bitcoin is finally on the right track and is slowly but surely cementing its place in the financial world. Even though the future for this cryptocurrency remains uncertain, one thing is for sure: it isn’t going away anytime soon.
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