Living in the world of technology there is nothing surprising that people refuse the paper money and start using virtual currency to pay...
Living in the world of technology there is nothing surprising that people refuse the paper money and start using virtual currency to pay for goods and services. One of such virtual currencies that are known more as a Cryptocurrency is Bitcoin – an unsolved puzzle of the modern financial world. We bet that each of you has heard of it. In 2017, Bitcoin has become the fastest-growing asset that reached unbelievable growth at the beginning of December, and its further expected to grow at the same pace at the beginning of the year 2021 as well.
Created in 2009 by Satoshi Nakamoto and having a very untraditional creation story, it has a very mysterious origin, which makes people even more interested in the Cryptocurrency. What else attracts people? Another attractive thing is its significant rise from $300 for a single coin up to over $11,000 during a quite short period of time, which seems unbelievable and makes many financial experts call it a Cryptocurrency bubble that once and even soon can crack. So what should people expect in the future and is it worth investing? Let’s try to find answers to these questions.
Bitcoin Speculation, Prediction, Myths, and Facts:
The rocketing growth of the price that is estimated at 900% has changed the goal of this currency as today it is mainly used for storing of value. That is why more and more experts raise the same question – how far this currency will rise and how long it will survive. There are many opinions on this matter. Some people believe that it will be around for many more years, while others make disappointing predictions. In fact, the Bitcoin speculation about an unhappy future of the currency is based on the collapse of bubbles that were rising with meteoric speed and once have burst. Why is it so? Many experts say that the situation with it reminds us of the unsuccessful stories of the tulip mania or the dotcom bubble.
However, there is another side of the coin. Some people do not agree with the expert opinion. The growing popularity of this money and its high value make people think about the durability of the currency and, due to this reason, they neglect the possible risks. It is natural that the boost in technology made it apparent that people need a reliable virtual currency to make online payments but, in fact, nobody can say with 100% confidence that it can be that currency.
Many Bitcoin-related predictions and speculations have been started by many cheap writing services and news agencies operating globally. It has attracted thousands of people with its fast price rise, popularity, and high value but its instability and possibility to disappear as quickly as it has rocked the financial world will become a huge disappointment to investors - similar to low-quality and plagiarized papers delivered for cheap.
Today it is impossible to say what exactly will happen with Bitcoin in the future: is Bitcoin in a bubble or is it flourishing to take place in all other virtual currencies? Viewpoints on this topic are quite different.
There is a rational explanation of the fact that the burst will not happen in the nearest future. The Chicago Mercantile Exchange announced the introduction of Bitcoin derivatives – it is a betting form on the value in future and, in addition, the latest estimates of it reached only $170 billion and that means that there is enough room for growth before the possible crack.
However, not all the predictions of experts are positive. Many financial leaders call it a food for fraudsters, state that it will not survive for a long time and may result in a great loss for investors. At the same time, there is a standard question: what assets have never collapsed or depreciated?
Bitcoin is the only virtual money today that has the largest market capitalization. Unlike many other Cryptocurrencies, it has more chances to survive thanks to the significant potential and the necessity to have a single digital currency. Nevertheless, today it is at the crossroad and nobody is confident that a Bitcoin community will be able to win this fight and make it a leading digital currency with the highest value. Moreover, businesses are not likely to suffer from the Bitcoin bubble. This is due to the fact that all the payments are instantly converted into a currency of the country and the processing rate is rather low. Consequently, the only people who might suffer from Bitcoin bubble crack are the ones who store the currency value, which means that they should be especially careful and keep an eye on the news regarding this issue.
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