Years after the bubble that inflated bitcoin’s value from $5,000 to a whopping $20,000, plunging over 80%, the cryptocurrency is on the verge of a ‘record high,’ bringing bitcoin back—and it’s more profitable than ever. However, cryptocurrency markets tend to be volatile, so there’s no guarantee of when this inflation or growth will last, but it seems like bitcoin is showing no signs of slowing down. Experts and analysts have estimated the cryptocurrency value to double or triple for years to come.
Additionally, you’re into Bitcoin or other forms of cryptocurrency—it may be interesting to note that traditional coins still have value. Custom challenge collectible coins are still very popular and can still be worth a lot of money in the long-term.
With that said, the following trends are just more proof of bitcoin’s ever-increasing value, profitability, and potential.
Prevalence of Digital Money
With the recent economic fluctuations inflicted by the pandemic, governments are pumping significant amounts of funds into economies, making traditional investments less attractive. Because of this, investors have been looking to invest in assets offering more profitable prospects. More people are putting their money on things aligned with the ever-growing digital economy. So far, the most favored stocks are Apple, Microsoft, PayPal, Zoom, and Amazon—where bitcoin provides aspects of both.
Additionally, the surge of demand in online shopping and cashless payments has skyrocketed the public’s interest in digital money. Several banks across the world, like the US Federal Reserve, Swiss National Bank, and the Bank of England, are planning on developing their respective digital currencies.
Besides the surge in demand and interests, cryptocurrencies are becoming more accessible through the use of stable coins having values pegged to central bank currencies like us dollar improved digital wallets, making it convenient for users to swap tokens. There are numerous indications that these bitcoin trends will converge, making it a go-to payment method for many. In fact, PayPal already allows American buyers to use their services to enable bitcoin payments. This service will be available to the rest of the world next year.
Technology supporting cryptocurrencies like bitcoin is maturing and ever-improving. However, one of the most significant issues for cryptocurrencies becoming mainstream is the amount of energy-intensive computing processes needed to make each transaction secure, which is crucial as you wouldn’t want the same token spent multiple times. In fact, experts revealed that the carbon emissions emitted from mining bitcoin alone are more than particular countries, like Sri Lanka.
Fortunately, thanks to bitcoin becoming prevalent, tech companies have embarked on significant technical upgrades to address the issues associated with bitcoin—transitioning blockchains to proof-of-stake mechanisms. These mitigate concerns of investors holding back due to environmental problems. Additionally, whole new layers are in the works, allowing blockchain technologies to expand to the broader financial market.
Most recent offers include decentralized exchanges and derivatives trading without conventional intermediaries like stock markets and banks, which one can only achieve using blockchain infrastructure—and cryptocurrency.
Institutions Seeing Its Values
More and more institutional investors embrace cryptocurrency as the concept becomes more popular to the public—with large-scale companies investing billions in bitcoin. Additionally, thanks to high-profile investors and organizations taking an interest in bitcoin, cryptocurrency is here to stay,
So with all these trends in place, what does this mean to potential retail investors? Although bitcoin has its share of positive trends along with its comeback, investing in bitcoin is still a gamble. During its early years, prices were much lower, allowing anyone to grow with bitcoin. However, now you’re risking buying and selling low.
All forms of cryptocurrency are still volatile and speculative assets, and though risky, bitcoin doesn’t seem like it’s going anywhere soon. However, remember, there are no guarantees—only bet on what you can afford to lose.