Although it is no longer a hot topic, for months Bitcoin has been on everyone’s lips. His spectacular revaluation led many to invest in this cryptocurrency with the aim of giving the big pitch. Day after day, bitcoin was worth more every time. Until suddenly its value fell and stabilized.
Have the best bitcoin moments been behind or are they still to come? Will it become a refuge value? Is the bitcoin condemned to oblivion or will it again become the fashion cryptocurrency? Today in TheStartupFounder we will analyze what future awaits bitcoin.
Past and present of bitcoin
It came to be worth $ 19,800 in December of last year. Many ventured to predict that their value would reach $ 100,000. Other than the million. However, a week later its value dropped to $ 11,000. As you can imagine, this was the star theme of the brothers-in-law last Christmas.
Currently Bitcoin is trading above $ 6,300 and it is impossible to predict what will happen to it in the future. The volatility of this cryptocurrency is maximum and if we invest in it we must do so being aware of its purely speculative nature.
The future of bitcoin
Next, we will explain the two most probable scenarios in which this cryptocurrency can be seen in a few years:
It was a bubble
In the most likely scenario, it is shown that bitcoin was a big financial bubble. Maybe one of the biggest in history. The truth is that it does not make much sense to think that a bitcoin can have a value of four or five figures because there is nothing behind it to back it up.
Most people who invested in bitcoins did so solely and exclusively with the goal of making money. They wanted to buy “cheap” to sell “expensive”. Every day new investors entered the market so that prices overheated and rose without control. Remember those who bought houses before 2008 to speculate. The scenario is almost identical.
That being the case, the price of bitcoin will continue to go down with the passage of time. There will be spikes, as in any bubble prick, but the trend will be clearly down for many years. Within a decade its real value will have absolutely nothing to do with that of the hottest months of its history.
It becomes a valuable asset
In the opposite scenario, once the speculators leave bitcoin, it will become a refuge of value for people. Its digital nature, its decentralization and its anonymity would make it a new means of collection, payment, savings and monetary support.
In a world that is increasingly changing and dependent on technology, bitcoin would be used as an alternative to traditional currencies. More and more transactions would be paid in bitcoin. It would also be used to send money from one country to another, avoiding commissions. It would even be a means to fight against inflation or evade taxes.
Maybe for this to happen five, ten or twenty years have to pass, but the possibility is there. The new generations are becoming more digital and cryptocurrencies could become normal in the future.
Also published on Medium.