The world’s favorite cryptocurrency hit a new record high last week, registering a value of over $60,000, and is poised to rise even further. But many critics argue Bitcoin is an asset driven by pure speculation, claiming it is a bubble destined to burst.
In its relatively short lifespan, Bitcoin has managed to grow from only a small movement of computer fanatics, Cypherpunks, and cryptographers into an increasingly mainstream phenomenon. Not only that but it is supported by a blueprint and ethos that could very well lead to a redesign of the internet and the financial system we know today. In its wake, many financial analysts, supporters as well as skeptics seem to be faced with the same question: Could Bitcoin be the currency of the future?
The bitcoin buzz has been successful in grabbing the attention of many high-profile investors as well as large financial and commercial institutions. Back in February, the electric carmaker, Tesla announced it has bought the US $1.5 billion worth of bitcoins and even has plans of accepting the cryptocurrency as a means of payment from its customers.
BlackRock, the world’s largest asset manager, is not far behind with plans to dip its toes in the same waters. Another recent convert is Bank of New York Mellon which announced on February 11 that it has also started to dabble into bitcoin and other digital assets.
Many financial payments and card processing behemoths have also recently jumped aboard the crypto bandwagon. PayPal, the financial payments giant, in many ways became a Pioneer of the bitcoin movement when it decided to embrace the cryptocurrency last year in October. Square has also followed along, making a purchase of $170 million worth of bitcoins.
Credit card companies such as Visa and Mastercard also became front runners in this crypto race with decisions to embrace cryptocurrencies as well. MasterCard actually announced that it would allow its users to employ cryptocurrencies on its network later this year.
Taken together, it seems much more evident that the cryptocurrency which was once the domain of outsiders, is moving ever closer towards the mainstream.
The pandemic has prompted most of the commerce to be shifted online, nudging consumers further away from physical coins and bills. It has also resulted in central banks creating massive amounts of traditional money, which in turn has further fueled the bitcoin frenzy.
Fears of inflation have been swarming the public ever since the US President, Joe Biden, signed the $1.9 trillion stimulus package. Many seem to argue whether such a significant amount is actually needed. There have been worries that the stimulus may result in the economy overheating which could, in turn, result in higher inflation rates. In such times, many people have turned towards Bitcoin and other digital assets with the hope of these being a possible hedge against a potential burst in inflation and the depreciation of traditional currencies.
Bitcoin, in its early days, had somewhat of an underground following for a while. However, over the last few years, Bitcoin and many other cryptocurrencies along with it have been able to make significant steps towards mainstream acceptance.
The increase in institutional investors and the hedge against inflation have certainly played a considerable role in Bitcoin’s current position today. However, a number of other factors have also supported Bitcoin. The recent booms have been successful in garnering the attention of potential investors. FOMO has also helped Bitcoin rise even further as many more intrigued investors chime into cryptocurrencies in hopes of becoming millionaires due to Bitcoin’s sky-high prices.
The availability of trading platforms and bots, such as the bitcoin mastery platform, has also helped in the rising popularity and acceptance of this cryptocurrency. These platforms make use of advanced technologies and powerful algorithms to allow their users to earn profits like a pro. These have proved to be especially beneficial for novice traders and investors still learning to hold the reins of this volatile crypto beast.
With the recent digitization of the world’s financial systems and money, the idea of future cash use shifting to digital tokens doesn’t seem as faddish or outlandish as it did a decade ago. But will this future be bitcoin? That still remains to be seen. Bitcoin is relatively novel yet the digital asset has been successful in strengthening its place in the financial world today. The future of this cryptocurrency is quite hazy at this point but one thing is clear: Bitcoin is here to stay.
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