In the last year bitcoin has gone from $7,300 to over $35,000 dollars and to anyone who has been invested since the very beginning, it has officially been the best performing asset of 2020 and by far the most controversial of 2020. It made it first appearance in 2009 and slowly but surely became popular and grew in price. To some people 2009 was a time of hardship, people were loosing their homes and loosing their jobs, and the economy in a sense was falling, so someone created an alternative in the economy.
When people loose hope of our current economy and don't trust the value of their dollar, they get scared and start buying other assets such as houses, gold and silver which has led the price of Bitcoin to rise by 900 percent in the last ten years. Lately, the media, Goldman Sacks and local ma and pa shops have given a lot of attention to Bitcoin. Robin Hood, Cash App and Webull have also started incorporating the Crypto currency platform. The more people and companies that will allow Bitcoin, the more expensive this will be and the more common it will become. Someday it may become the new normal, think about it. Instead of handing Starbucks $5 dollars you will be handing over 0.00015 Bitcoin.
Currently the federal reserve does not have the authority to regulate the Bitcoin chain system which can be a problem with theft and lost money or people who want to just buy illegal things without have a trace. This can be one of the bad things. The fincial crimes may start requiring identificiations and reporting your information if you are withdrawing more then 20,000 within 24 hours. Which does not sound to bad, but it does mean changes coming if this continues as a currency. Since the Government has no control over this form of currency yet, this can lead to some of the issues with its price volatility.
Price volatility can go down just as fast as it goes up, which does not do well for a curreny. When you go and transfer your american money into pesos its consitantly around the same exchange, and every few months it will go up a few pesos or down a few pesos, but definitely no where near the 90 percente drop and gain in a matter of hours. Currently the history of the valititly is as follows…
In the last few days alone it has gone from $28,000 to $34,000 to then back down to $28,000 and jumping all the way up to $40,000. In 2011, Bitcoin took a crashing hit loosing over 93 percent of its value, and leaving investors running away from Bitcoin . A few months later in 2012, Bitcoin saw a 56 percent drop, 2013 saw a 73 percent drop and 2015 saw a 80 percent drop. Even though Bitcoin has seen very low lows every year it has gotten more expensive. In 2009 Bitcoin was just a few dollars, in 2013 it was worth $220, in 2015 it was worth $460 and then skyrocket to the most recent 2019 average price of about $7,000.
Bitcoin has some great potention of being our new form of currency for online purchases, everything has gone digital and yet we still have cash as a form of payment, cash will be a thing of the past but at the end of the day the government can probably just come in and create there own form of online currency. If you truly think about it now you just see a bunch of numbers on the screen anyway. When you get your paycheck from your place of employment, they are not not giving you cash its just a direct deposit into your bank account and in a way I think that can be seen as a digital currency.
Bitcoin has the potential to have a future but it also has the potential of going no where, which is why the topic is so controversial in the first place. Some people think it will replace everything and other people think its a scam and others just don't understand the concept at all. I have personally invested some money into Bitcoin just to see what happens but have currently sold all of my coins. I find it crazy that in just a matter of days it jumps from 25,000 to 40,000 and have decided its to much risk for me now and decided to sell but to each their own.
Whenever you are investing your money there will always be a risk and you can’t follow what others are doing blindly, so do your research and make your own decisions as to what you want to do. There have been articles in the past stating that people have lost their life savings using Bitcoin, investing everything they had and having it all crash. Its not worth putting yourself at that much risk so always remember that investing money can be hard and dangerous! This is especially the case when we don't know the legalities of Bitcoin yet.
A glimpse into the future… in a world where the government regulates the Crypto currency world, it can now be used as a form of payment everywhere. It could be pretty cool! Instead of having to have payments transfer in 3 days, you can have your Bitcoin money in a matter of minutes. Instead of you having to carry around credit cards and debit cards you can just pull out your phone without having to use a third party platform such as cashapp, venmo, zelle or paypal and wait for a processing time frame. You can just have the money there and ready to go. When you go and hang out with your friends and you are all splitting the check at the resturant, instead of handing the waitress 5 difference cards and making her life complicated you can just have one person pay and you pay them back in a matter of minutes instead of a matter of days. Thats the cool part, thats why people like the potential of Crypto currency because of its speed, we live in a world of faster, better, stronger and this meets all of the requirements.
