Bitcoin is not regulated by any bank or government, which means that all transactions are anonymous and secure. Bitcoin technology has many potential uses among the world’s population. Still, its most popular use by far is an investment vehicle, with some people choosing to buy Bitcoins for their investments, while others prefer to use them for payment methods like online purchases, bitcoin ATMs, etc.
The sudden rise in the cryptocurrency Bitcoin Investment has intrigued economists, investors, and people curious about why people are so insanely into this new currency. And with each fluctuation happening in a matter of hours or days, how is anyone supposed to predict what the future holds for this volatile currency accurately?
Is bitcoin for real, or is it just a bubble?
Bitcoin has boomed in popularity in recent years. Some people are talking about it as if it is the new gold, while others call it a bubble. How do you know if bitcoin is for real or just a bubble?
Let’s see why:
- If everyone gets equal chances to purchase bitcoins, there should be no advantage over another. It should be easier for the poor to get bitcoins than it would be for the rich to obtain them! So why isn’t this happening?
- There has been a significantly higher adoption rate for bitcoin than there has been for other currencies, such as dollars and euros, during their early days.
- The reason that so many people want bitcoins is that they believe that they will become valuable someday (the “bubble” theory).
FOMO of Bitcoin
Global adoption of bitcoin and other cryptocurrencies is expanding at a rapid pace. FOMO, or fear of missing out, is often cited for widespread adoption. People want the perceived security and stability of holding assets in cryptocurrency, even though there are no guarantees why this would not translate into further volatility. As more businesses begin accepting cryptocurrencies as payment, a greater demand is created, fueling additional growth. It also gives investors the chance to make money when prices rise instead of waiting for gains from fiat currency markets.
People love the volatility in bitcoin:
People love the volatility in bitcoin. Bitcoin is an emerging form of currency free from government oversight but relies on people’s trust in the system to work properly. When bitcoin first came out in 2009, it was worth less than a penny per bitcoin. Today, the price of one bitcoin ranges anywhere from $40,000 to over $60,000. The extreme fluctuations in value are partially attributed to its lack of regulation and accessibility. People like this volatility of Bitcoin. The risk-reward ratio makes investing in crypto extremely exciting. If you invest in a company without knowing whether or not the business model will succeed, then your investment could potentially go up or down by 100%.
Bitcoin’s value is determined by the market, not a central authority. The price can drop or rise precipitously without warning, but this is what many people find appealing about Bitcoin. It becomes worthless when you store your money in it for too long, but it becomes worth more if you sell out of it quickly. This gives the currency an inherent thrill that some people find addictive.
Social media plays a big role:
Social media plays a big role in the price of bitcoin. The four main reasons are rumor-driving headlines, stop-loss orders, market manipulation and old-fashioned human instinct. Rumors cause news stories to pop up all over social media about bitcoin prices hitting new peaks and crashing quickly. This causes panic among traders who buy and sell at these times. They have lost their patience with buying or selling and decide to hold off until they know what happens next. Stop-loss orders are placed after spending a certain amount on cryptocurrency trading to protect profits in an unexpected price change.
Bitcoin provides hope for a better future:
Bitcoin provides hope for a better future with its revolutionary decentralized, peer-to-peer digital money concept. The future of Bitcoin is uncertain because it’s still relatively new, and there are many unknowns about how it will be adopted in the future. However, some predictions suggest that if Bitcoin becomes more popular, it may become as widely used as cash. Bitcoin is still in the experimental stage, so it’s difficult to say what the future holds. Bitcoin has been around for less than 15 years, so it’s hard to predict how much longer it will be around. The price of Bitcoin has fluctuated wildly in recent years, but the long-term trend is upward.
There are many different schools of thought on Bitcoin, and there is no one answer that satisfies all viewpoints. Some people believe Bitcoin’s future is bright and will continue to grow in popularity and value, and others think Bitcoin has no real use case and its price will eventually crash.
The world is obsessed with Bitcoin because it’s a way to escape the corruption of governments, the manipulation of Wall Street, and the greed of corporations. It’s also a popular way to buy things that people can’t purchase with traditional currencies like gold or silver. Some people believe in Bitcoin with everything they’ve got, but many skeptics think it’s just another tulip-like bubble ready to burst.