Bitcoin is a real talking point in investment circles, it has been hovering around an all-time high for a few weeks now, everyone is wondering when it will break through the $20,000 ceiling, the price has been kept high this year mainly due to MicroStrategy and payments provider Square adding Bitcoin to their corporate treasuries.
Bitcoin is a cryptocurrency or often referred to as a digital asset that works as a medium exchange that uses cryptography for its management, instead of central authorities. It is becoming increasingly popular as a way to pay for online goods and services and as a trading alternative to traditional currencies, for instance, Bitcoin Loophole is an online platform where users can trade Bitcoins. Bitcoin was invented by Satoshi Nakamoto, this is thought to be a synonym and the real identity remains unknown, although there has been much speculation as to the identity.
Bitcoin has undergone rapid growth to become a major currency on and offline, Bitcoin and cryptocurrency are often referred to as new, but they have been around a while now, nothing like the currency that we all use in our day-to-day life, but longer than you might think. Let us look at a brief history, Bitcoin was the first, established in 2009, although there were previous attempts at creating an online currency, like Bit Gold and B-Money, which were never fully developed.
2009 – Bitcoin begins as the software is made available to the public
2010 – Bitcoin achieves a value as 10,000 are swapped for 2 pizzas
2011 – as bitcoin increases in popularity alternatives start to appear
2012 – Bitcoin reaches $1,000 for the first time, but soon crashes to $300
2014 – the first large-scale scam with the exchange Mt.Gox 850,000 Bitcoins are never seen again
2016 – Bitcoin almost loses its crown to Ethereum and ICOs, but the US and SEC warns investors away
2017 – Bitcoin continues to grow, reaching $10,000 for the first time
2018 – online payment gateway Stripe announces the phasing out of Bitcoin payments
2019 – September 2019 there were 5,457 Bitcoin ATM’s worldwide
2020 – Bitcoin reaches a new all-time high of nearly $20,000, PayPal allows users to buy and sell
With MicroStrategy’s continued huge investment in Bitcoin, which has tripled its stock since the summer. Many investors are seeing their support as bullish and many are looking for direction with the bull run remaining at just under $20,000, with their investment, although small compared to a traditional market it may very well have a positive effect on the crypto market.
It is expected that cryptocurrencies will in the future replace traditional bank accounts, some people have even said that they see Bitcoin as the future version of gold. Bitcoin is the main reason behind this shift in thoughts and it is expected to see the price double in the coming years, but no analysis can predict how Bitcoin will trade in the future. There are those who see Bitcoin as innovative technology and those who see it as a financial bubble waiting for the crash, however which one is right only time will tell.
Bitcoin has grown rapidly in the last few years with regulation by the world’s governments set to be the only force that can dictate its continued growth. Bitcoin’s ambition of replacing the dollar has taken a further step forward with its success in Japan, one of the largest economic powers in the world, this is partly due to it being a much cheaper and more secure payment method.
However, it’s not all plain sailing, there are a few issues still to be resolved, collection of taxes and online criminals, these will need to be properly addressed if we are to get the regulation of cryptocurrencies needed if they are ever to supplement bank-issued money. That said, we cannot deny the continued rise and use of cryptocurrencies to pay for online goods and services.