Once for the technology wizards and risk-averse investors only, cryptocurrency has seen a dramatic change: through the various trading platforms, crypto is now accessible to anyone and, increasingly more so, a safe way to invest.
For those who are perhaps unfamiliar with all things crypto-related, cryptocurrency is a virtual currency and uses digital files as money. Unlike traditional currencies, it is not controlled by any single person or even governments.
The most well-known crypto has to be Bitcoin, which emerged in 2009. Shrouded in mystery as to its creator, or creators, serious investors seemed to shun Bitcoin partly due to its apparent secrecy but mainly due to its volatility. Of course, Bitcoin is not the only cryptocurrency out there: others include the likes of Ethereum, Litecoin, and Libra. With others emerging on a regular basis, what has changed to make crypto a safe place to invest, and what is it about now that means it is perhaps the safest time ever?
Cryptocurrency latest news on Bitcoin
Despite Bitcoin’s reputation for being a (very) high-risk investment, 2020 has seen a year of growth. Not just any old growth like the type a traditional investor may be pleased to see: this has been both rapid and consistent across the course of the last 12 months.
If you are someone that likes to stay well informed with all things crypto, the cryptocurrency latest news involving Bitcoin can not have failed to escape your attention: on Wednesday 16th December 2020, the value of a single Bitcoin hit an all-time high by exceeding $20,000. When you stop and consider that back in 2010 Bitcoin was valued at around $0.08, you can appreciate the sheer scale of growth that has been experienced.
What the heck happened in 2020?
Sure enough, the record-breaking value of Bitcoin is impressive, to say the least, but does that mean that crypto is any safer to invest in now than it was before? Understandably, many people will view this new high as confirmation of their fears, the same fears that have always stopped them from investing in crypto: cryptocurrency, and especially Bitcoin, are highly volatile and can not be relied upon. The truth is though, that the events of 2020 may go someway to debunk this fear.
What is worthy of note is that traditional currencies, as well as common commodities that people invest in, fluctuate in value. Their fluctuations are generally triggered by world events, typically a single significant one. With Bitcoin, things are different: no one can attribute a single event to this dramatic, metaphoric rise: instead, it is the result of long-term market maturity.
With maturity in the market came confidence, and with confidence came mainstream acceptance of Bitcoin. Microstrategy has now invested hundreds of millions into Bitcoin, and have made public desire to raise $400 million more to invest the same way. Well known billionaire hedge-fund managers have ploughed their cash into Bitcoin, and the likes of Square and PayPal have now made Bitcoin useable by the masses. The end result? Demand has rocketed, followed rapidly by Bitcoins’ value.
Bitcoin in the real world
There was once a time, not so long ago, where people just didn’t get the concept of crypto and, in particular, Bitcoin. They read of teenagers becoming crypto millionaires and of people having ‘wallets’ worth absurd amounts, but many people didn’t quite understand the point behind it: after all if a currency is virtual, how are you supposed to spend it? That has now all changed.
With over 100,000 merchants now accepting Bitcoin as a payment method, and some online casinos accepting nothing but Bitcoin, suddenly it has become a tangible asset: one that can be used. People are now using Bitcoin to place deposits on houses and buy cars, expensive ones at that, outright, so suddenly Bitcoin is no longer seen as some obscure currency with little purpose.
Crypto beyond 2020
For those that fear that they’ve seen it all before and that the inevitable bust will follow the boom, things are different this time around. Now Bitcoin has broken through and entered the mainstream, it is hard to imagine the previous, often dramatic, plunges that have followed such intense growth.
There was never any danger of cryptocurrencies disappearing. Of course, as with any investments, there are always going to be ups and downs, but what we have seen in 2020, and the reasons behind it happening, have made it the safest time we have known so far to invest in crypto
