Many of us are thinking whether Bitcoin is still something worth investing in or did we miss the best time to profit from it and in turn, our chance of becoming a Bitcoin multi-millionaire. However, history has taught us that we can never say never when it comes to Bitcoin; every time financial experts and investors alike think the cryptocurrency has reached its peak, it just keeps growing further.
Since its inception in 2009, the then early users and advocates always stated that this cryptocurrency will revolutionise the financial industry. However, even they did not predict the value of Bitcoin would be so high that it would hit 58,000 dollars per coin as of 2021 or that investors, both professional and beginners, would be taking part in this game-changing financial movement.
The history of Bitcoin
The creation of Bitcoin is credited to an unknown group of people called only “Satoshi Nakamoto”, who wanted to introduce a new and revolutionary idea around the way we use money. Arguably, the inventors of Bitocin wanted people to have more control over their finances, and something that was not controlled by their government who could then manipulate the value of their currency. Bitcoin was built to be something long-lasting, a currency unlike any other that could not expire or get damaged and allow users to complete transactions safely and securely online with the use of a digital e-wallet.
In the beginning, as expected, the value of Bitcoin was very low but it slowly started to grow as more and more users adopted this as their payment option online. The blockchain technology that Bitcoin utilises provides its users with the ultimate safety measure and allows users to have transactions logged and assigned to them until they have authorised the transfer amount before completing the transaction.
It wasn’t until 2016 that the value of Bitcoin started to climb to astronomical heights as the general public became more informed and infatuated with the cryptocurrency, mainly due to the media attention that surrounded it. It was also the first time a cryptocurrency had become so popular and had so much attention internationally. Due to all the attention and increase in investments, we saw the first massive drop in the value of Bitcoin when it hit the then highest value exceeding $20,000. It had a sharp fall to around $7000 costing many people and investment companies millions of dollars as they tried to sell off all their Bitcoin holdings. The cryptocurrency then started to steadily increase in value again and climbed well above this value in 2020 where it reached a value of over $50000 which was completely unexpected, especially for financial experts.
Why is Bitcoin so Valuable
In 2021, Bitcoin saw another great leap in valuation which took the cryptocurrency to approximately $60000 but this did not last long before it dipped down again to the value of $50000.
Part of the reason why Bitcoin is so valuable is because, like all traded commodities/stock, it is finite and eventually there will be a maximum number of Bitcoins in the market. Like all marketable stock/commodities, demand will drive up the price as more people are looking to ride the high and make a profit on this cryptocurrency.
Recent years have seen big changes in the cryptocurrency area of investment, there are now 5 trading platforms such as Coinbase, Kraken and Bittrex where traders can buy and sell cryptocurrency including Bitcoin, Etherium and many more. Recently, Coinbase, which is one of these platforms, went public in the New York Stock Exchange for tech (NASDAC) which is a sign to the general market that these stocks are here to stay and everyone can be a part of this financial movement of the future.
Other news that has helped push the value of the cryptocurrency up is that some familiar names in the business world have come out to say they have invested in the cryptocurrency. Elon Musk, the founder of Tesla and SpaceX, has reported that he has bought $1.3 billion worth of Bitcoin and this has led to many people saying he has made more money from this investment than Tesla has made from the cars it’s selling.
Another big investor of Bitcoin is the investment fund company, Grayscale Investment, which has a specific fund called Grayscale Bitcoin Trust and holds a total of 3% of all the Bitcoins in the market with an estimated value of over $30billion worth.
Further advocates of Bitcoin investments include Shark Tank’s investor Kevin O’Leary who actively promotes the Bitcoin investments he has made through his fund “The O’Leary Investment Fund”. He has also highlighted that there are mutual funds and pension funds that are looking to invest in Bitcoin but they would only do so if the seller can confirm the coins were mined in a country which will comply with their ethics and sustainability policy. And the great thing about Bitcoin is that you are able to prove where this coin was mined which means these coins come at a premium.
What Does this Mean About the Future of Cryptocurrency?
With the current cryptocurrency trend that we are seeing today, it’s inevitable that Bitcoin will continue increasing in value and in turn, sustain the growth it has managed until now. The current trend shows demand for the cryptocurrency is still very strong and continuing to grow with over 100 million adults worldwide owning it. Bitcoin is also a great boost to new investors wanting to get involved in cryptocurrency trading and help themselves to get some passive income by investing a small amount of money in Bitcoin.
If you’re looking for an easy, low-risk investment, then Bitcoin would be a great choice of investment for you. Use caution as with all investments there are no guarantees but you could be one of the Bitcoin success stories that we all read about in the media – the next Bitcoin billionaire!