HomeNewsThe Digital Gold: An Introduction to Bitcoin.

The Digital Gold: An Introduction to Bitcoin.

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Bitcoin was initially discarded as fake internet money, or as part of an ideological revolt against capitalism. However, it has gradually made its way into the limelight. Despite its critics’ claims that it has no intrinsic value and dangerously volatile nature, the digital asset has rewarded its early users while leaving its early doubters with regret.

Globally, Bitcoin is becoming a formidable force in the world of finance, and it seems to be gaining further momentum. Earlier this spring, the digital currency managed to hit an all-time record high of over $64,000. This phenomenon is spreading throughout the economy like a wildfire, with many analysts predicting the demand for the digital coin to skyrocket exponentially in the future.

The Rocky Rise To Fame 

In 2009, Satoshi Nakamoto introduced Bitcoin to the world as open-source software. A major driving force behind it was the 2008 economic crisis, particularly the decision to print more money to rescue banks from the credit and stock market crisis caused by the real estate bubble.

When it was introduced, it received harsh criticism. Despite its being worth only a few cents at first, nobody could quite predict its eventual global success. It wasn’t until Bitcoin went on a bull run in 2017 that the digital asset really came to prominence.

Bitcoin rose from $900 to a staggering $20,000 per coin in a span of only a few months, recording staggering growth. The massive rally had skeptics and prospective investors alike captivated, while many poured in trying out their chances at winning big. The trend was expected to continue, however, the bubble popped not too long after, and crypto soon came to be demonized and regarded as merely a gambling fad.

Warnings were issued by authorities and high profile individuals that anyone willingly taking a ride on the volatile waves of the crypto sea would soon find themselves in deep water, with no way back to shore. In light of these events, many investors and traders became wary of betting on the cryptocurrency and questioned if Bitcoin would be able to recover from such a loss of investor confidence.

Since then, Wall Street seems to have changed its tune. A major component of Bitcoin’s value is its volatility. While this has caused unsettling headlines at times, it is the main reason investors keep returning to it.

Bitcoin’s Undying Popularity

Despite a blow in value, Bitcoin never truly goes away. This has become increasingly evident in the last year.

Many predicted bitcoin would crash and burn following the Covid-19 pandemic since almost all other assets were observed to suffer losses. Despite the economic turmoil and currency devaluation, this was the time when shined the brightest, gradually surging upwards. In the midst of rising inflation, the world was finally fully recognizing Bitcoin’s true potential as it emerged as a deflationary asset. In fact, supporters believe that it could replace traditional fiat money, while others have drawn comparisons to gold, labeling it as “digital gold”.

Bitcoin has seen its value rise dramatically as the narrative that it does not adhere to inflation laws has been widely circulated. Bitcoin’s code specifies a maximum number of coins that can be mined, 21 million. There are already about 18.6 million Bitcoins in circulation, and as more are mined, the digital coin will become even more scarce. As a result of low supply and high demand, Bitcoin can retain its value.

In addition, Bitcoin’s decentralized nature, its pseudo-anonymous properties have always been an underlying reason for its undying popularity. But retail investors aren’t the only ones cashing in on this Bitcoin buzz.

Several institutional investors have recently entered the Bitcoin scene, including Tesla, Square, PayPal, MicroStrategy, and others. With this increase in institutional interest, Bitcoin has gained a new dimension as a legitimate financial currency and gained a sense of trust that had previously been lost.

Furthermore, trading bitcoin has become much easier, which has resulted in an influx of traders seeking high returns. Trading platforms such as https://bitiqapp.com have merged as a safe haven for novice investors, making use of advanced technologies and specialized software to make trading decisions for the user. These allow them to capitalize on fluctuations in the price of cryptocurrencies without having to spend countless hours in front of a computer screen or spend valuable time learning about the market.  To get started with such a platform, visit

Hopes For A Brighter Crypto Future 

Since early spring, Bitcoin’s price has taken a hit, currently registering $31,000 per unit. But despite the bullish sentiment toward bitcoin, supporters are confident that Bitcoins will soon be back on its feet. It appears that analysts are also making similar predictions, predicting Bitcoin will pick up its bullish trend in the second half of the year.

While Bitcoin may be operating in a well-defined range of $30,000 to $35,000, it is bound to recover. And with rising institutional interest in this cryptocurrency along with El Salvador’s decision to accept it as legal tender, Bitcoin is expected to make big waves in the financial world within the next few years.

 

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