Sceptics have hounded Bitcoin since its launch in 2009 and continue up to the present. Many dismissed it as a fad, saying it’d fade into obscurity as fast as it was created. Others claimed it didn’t have any inherent value and it’d never gain recognition from traditional financial institutions, nor would it be a profitable investment.
Still, others thought the complex technology behind it would deter people from supporting the digital currency and assuming it’d never go mainstream. Some cautioned against the anonymity surrounded cryptocurrencies as in the early years, it’s used for money laundering and illegal trades. They even frowned upon claims it’d make a hedge against inflation with the likes of gold and other precious metals.
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Rise Of Bitcoin
Bitcoin is now increasingly popular. Gold vs. bitcoin topics is all over the internet, comparing a traditional hedge asset to a newer yet equally valuable digital asset. Investors are seeing the advantage of diversifying their portfolios as suitable means to build wealth.
Twelve years later, Bitcoin is proving sceptics wrong. From a value of merely USD$0.08 in 2010, its current average price is at USD$32,000. As of February 2021, its total value is at USD$1 trillion. Analysts expect Bitcoin to continue its upward trend for the rest of the year and well into 2022. Banks, large companies, and influential personalities are making a move as they realize the same criticisms they are the same reasons behind its success.
Converted To Crypto
As analysts forecast Bitcoin’s continued rise, many sceptics are crossing over as crypto advocates along with alternative investments like https://www.oxfordgoldgroup.com/articles/precious-against-inflation/, among others. Embracing crypto is hardly a surprise despite years of resistance. Here are several reasons why they finally realized Bitcoin’s value as a digital currency and as an investment:
- Volatile Nature Makes Investment Exciting
Cryptocurrencies’ volatile nature is its most distinct feature, and this appeal lured early investors, making it the reason for those recently joining the bandwagon. Compared to traditional investments, Bitcoin’s ability to rise 50 times its value and take a nosedive a few days or months later makes it an exhilarating prospect to high-risk investors.
Millennials are drawn to these types of investments as a way to quick wealth and instant gratification characteristic of their generation.
- E-commerce Payment Boosts
One reason for Bitcoin’s early success is retailers made a gamble to include it as an alternative form of payment for online purchases. You can thank the pandemic for the e-commerce boom and the widespread acceptance of Bitcoin and cryptocurrency instead of cash and bills. Debit and credit card companies have also included crypto as additional payment methods.
- Investment Appeal
Apart from being used as a payment method, Bitcoin is also considered an investment. It’s traded in various cryptocurrency exchanges featuring both crypto and fiat currency. Investors find it beneficial to invest in Bitcoin to make the most of their money, especially when other investments don’t yield substantial profits.
- Inflation Hedge
Cryptocurrencies diversify portfolios and act as hedge assets to protect from market downtimes. During the pandemic, Bitcoin and altcoins appear independent of political or economic pressures, providing investors a way to mitigate financial risks. Also, the currency doesn’t easily depreciate over time, so it’s becoming preferred by investors.
- Adoption Of Financial Institutions
While traditional institutions are the number one crypto critic, they slowly realize the value of Bitcoin and other digital currencies as a means of exchange. Several banks have already agreed to create their Bitcoin exchange-traded fund. State and country central banks are also increasing the production of paper currency to increase cryptocurrency values.
As more citizens shift to digital currencies, especially during this pandemic, expect more financial institutions to adopt this medium of transaction.
- Impact of Social Media
Social media is also fueling the hype about Bitcoin. Celebrities and other personalities are putting crypto in the spotlight. Active online communities also continue to rake in followers while stories from instant Bitcoin millionaires make everyone want to have some slice of this newfound wealth.
People see crypto not only as trending but as a way to take charge of your financial success with as much freedom and possibility. At the same time, the online platform provides a thread of discussions for increased awareness of netizens about crypto.
Crypto Becoming Mainstream
Increasing acceptance of major financial institutions, endorsements from influential personalities, and adoption of retailers and businesses are making sceptics shift their perspective toward the advantages of Bitcoin and altcoins. While in the past, they thought cryptocurrency is just a fad, it’s now into the mainstream, a force that’ll stay well into the future.
Cryptocurrency is finally gaining the recognition it deserves. It’s a favorable alternative to paper bills and fiat currency, especially in online transactions. Once criticized for the tedious mining process, the technology behind it is now the basis of all secure exchanges on the internet. Banks and other financial organizations are incorporating cryptos in their balance sheet. They also make investment portfolios diverse and dynamic.
Thanks to the influence of social media, crypto is getting all the more popular. It fuels the millennials’ hope for instant wealth. Success stories are widespread, and people look to them as hope-filled possibilities for anyone who dares to enter the digital currency market and be favored.
Conclusion
Sceptics are now losing ground as Bitcoin and cryptocurrencies become mainstream. In its twelve years of existence, the all-time number one digital currency has proven its worth. Its volatile nature has paved the way for high-risk and high-yield investments millionaires usually being made in half a lifetime. The shift towards e-commerce also proves a pivotal moment as retailers and financial institutions regarded crypto as an acceptable form of payment.
Apart from its monetary value, cryptocurrency also serves as favorable investments. It’s now at par with gold and other precious metals as hedge assets. Investors knew all along Bitcoin and altcoins have the potential to change the markets. Though critics remain doubtful, those who look to crypto to generate wealth faster far outnumber those who remain unconvinced of its value and benefit.
