It all began back in 2009 when an unknown person or group of people known only as Satoshi Nakamoto unveiled Bitcoin, a cryptocurrency that you could buy and sell digitally. It sent shockwaves through the financial market, with financial forecasters suggesting that it wouldn’t last past the year. It did, however, and many years beyond that of 2009 with Bitcoin still going strong to this day.
It’s predicted that by the end of December 2021, Bitcoin will be 400,000 dollars as opposed to its 13,000 dollars today. But how can Bitcoin increase so much in such a short space of time, you ask? Quite simply, the demand for Bitcoin is ever-growing and if its history is anything to go by, Bitcoin will continue to surge, even if it experiences financial crashes along the way.
Bitcoin’s Highs and Lows
Much like any currency, Bitcoin has had its share of highs and lows, especially since cryptocurrency is still a relatively new concept. The crypto market has continued to grow since Bitcoin’s inception in 2009 with the likes of Ethereum, Litecoin and many other cryptocurrencies now fighting for the crypto top spot that Bitcoin undoubtedly owns. No financial market is completely stable, fluctuations happen and values can easily increase and decrease when you least expect it. Cryptocurrency, and Bitcoin in particular however, is one of the more stable currencies that there is, meaning you are less likely to lose a huge amount of money quickly and worse, out of nowhere.
Bitcoin has experienced two major crashes in the last decade, seeing one back in 2018 and one in early 2021. The 2018 Bitcoin crash, now known as the “cryptocurrency bubble”, had been expected years before it finally happened. Experts were predicting a crash from as early as 2016, with many forecasting that the inevitable crash would in fact spell the end of the cryptocurrency market. When the Bitcoin crash did happen, 80% of its value was gone and later in the year, Bitcoin’s value was the lowest it had been since its inception. But, contrary to popular belief at the time, Bitcoin managed to survive the crash and somehow see their value stabilise to exactly what it was prior to the crash. This was almost unheard of, especially for a currency so new but its popularity was so huge that Bitcoin again continued to grow.
Bitcoin’s second crash came in spring of 2021, and it saw the cryptocurrency lose a 5th of its value in under seven days flat. Again, financial experts were claiming this was the end of the cryptocurrency market, especially as the whole of the market was impacted and Ethereum’s value also decreased massively. Reports now suggest that there was close to 300 billion dollar wiped from the market. Much like the 2018 crash, Bitcoin managed to survive and after, reported record-breaking value figures due to the increase in demand whilst its value was low. Today, just a mere 2 weeks since the crash, Bitcoin is worth 600% more than it was this time last year. So should you still invest?
People Investing in Bitcoin
When you have the likes of world-recognised billionaire Elon Musk actively discussing the benefits of Bitcoin and in turn, investing 1.5 billion dollars in it himself, it’s almost impossible to believe that there’s a reason not to invest in Bitcoin. Match that with the vast array of other well-known public figures that are rumoured to have invested including Bill Gates, Lionel Messi, Floyd Mayweather and Kevin O’Leary and it starts to seem like a very attractive opportunity.
It’s not only famous people that have invested in Bitcoin, however, there are millions of people all across the world that own Bitcoin and actively trade in it each and every day. It’s suggested that there are 100 million adults that own Bitcoin globally, with this set to grow by at least 30% in the next 12 months.
It’s not surprising why this growth is expected, especially since there are thousands of people that have claimed to have made millions from investing in Bitcoin and it even has its billionaires. Whilst some worry that Bitcoin is “too good to be true” it’s proven that people have indeed made huge profits from their Bitcoin investments, so much so that 3% of Shark Tank’s Kevin O’Leary’s entire wealth is in Bitcoin.
Why is Bitcoin Popular?
It’s widely considered to be the most secure currency on the market, with Musk even backing this and saying it is the future of currency. It uses high levels of encryption to ensure your money is safe, and this, matched with the fact it is one of the most stable currencies you can own, is a winning combination.
It’s important to note that people are still actively working to make Bitcoin even more secure and safe, especially as demand has increased, ensuring that users are always assured that their finances are never in danger of malicious digital threats.
The future of Bitcoin
With the popularity in both Bitcoin and the cryptocurrency trading platforms that allow users to trade and invest easily growing rapidly, there’s no doubt that Bitcoin and its value will continue to soar. More companies are now actively accepting Bitcoin as a payment method, alongside popular musical artists like Snoop Dogg allowing Bitcoin as a valid way of purchasing his albums. Japan has now granted Bitcoin a valid payment method with the rest of the world set to follow suit. There’s so many exciting prospects ahead for cryptocurrencies, especially Bitcoin, as it continues to lead the market into a whole new era. There’s never been a better or more important time to invest in Bitcoin and if its history tells us anything, its value will continue to increase year on year.