Bitcoin: What Is The Talk Always About?December 23, 2019
Where a lot happens daily, bitcoins since its inception has taken a lot of space in the columns of esteemed newspapers. With the technicalities involved, we often find people questioning “ What is it in the bitcoins that it so hyped?” “What sets it this apart?” To enunciate the ever-growing popularity of bitcoins, we’d like to put forward an instance. According to Eddie Luchford, had you spent $27 on Bitcoin Circuit when it was invented way back in 2009, you would be an owner of $37,000,000 today. A reason enough for it to be so hyped about? Well, let’s see!
- Is it just a beginning?
Bitcoin has seen an insidious rise in its value during 2017, the value going from $777 to $17000. It is known to be creating billionaires out of aware and opportunistic investors, leaving all the authentic financial bodies and institutions agape. Some believe that this is just a beginning where others feel that it’s highly plausible that bitcoin will see a decline because of the Government’s regulations.
- Scarcity: A Treasure?
When a resource is scarce, we tend to treasure it more. Thus, certain proponents attribute bitcoin’s over-popularity to the face that it is finite in existence. There will only ever be 21 billion bitcoins in existence, overall. Can we always print and mint more? No, unlike, other fiat currencies, it is not possible to print more in bitcoins thus making it scarce and limited.
- Aims too good
Bitcoins were introduced with the motive to democratise the process of financial transactions in the economy. Thus with aims too noble, it ought to gain popularity. However, it was only later that it was realised that the motives had gone haywire and where it had to democratise the process, it got opposite with bitcoins being used as a way to procure illegal commodities.
- Then Why?
With all these assumptions failing miserably, what makes bitcoin so excited about? According to one of the very famous economists, the prominence of bitcoins is attributed to the same supply and demand economics. There ain’t many bitcoins available and with the upsurge in its price, has attracted a ton of media attention.
- Can decline too
Bitcoin is highly volatile. The price of dollars fluctuates immensely. It can swing hundreds and thousands of dollars in just a minute. Beginners in investments always tend to panic and make wrong investments; therefore, bitcoin might see a decline with an apogee. This also forms for yet another reason why bitcoin cannot be accepted as a normal form of payment. Bitcoin is a relatively new and a complex asset which might be gaining prominence but not many people own or wish to own bitcoins.
- All is said but not done?
Bitcoin is pretty useless as a usable currency; therefore, it is sometimes referred to as “Digital Gold” and will simply be used as a benchmark to trade other cryptocurrencies. However, there are some countries which have started using bitcoin as a mode of payment in cabs.
- Too late to enter the race?
As they say, it’s better late than never. It’s never too late to invest in something you think will do for the world. With the cost of bitcoin so high today, there are already some who are sailing the boat easily. Therefore it is suggested that when you begin to invest, you can take up lighter currencies like that of Etherium as their rate of interest would be high giving you a greater return of Investment just like Bitcoins had it in its inception.
Because well, who knows what the price will be five, ten or fifteen years later from today? It’s always better to take a risk and fail rather than not take any risk at all, and it’s better to lose in this crazy race than not be a part of it.
The 2014 documentary The Rise and Rise of bitcoin very enunciatively portrays the journey of the bitcoin in the economy today and the revamping of our economic system because of the advent of Bitcoins. Thus, where there are numerous reasons there is always talk about bitcoin for, we cannot ignore its loopholes but what we can always stay assured of is the fact that the race is not going to stop or take a halt anytime soon. In all, indeed, bitcoin is widely hyped but if it is worth your money and time? That’s a question you need to answer.