Is Bitcoin Becoming too Mainstream?
In the last few days, there has been constant talk about the move made by Tesla’s owner, Elon Musk, regarding cryptocurrencies, specifically Bitcoin. Namely, just a few days ago, one of the richest people in the world invested $ 1.5 billion in Bitcoin! In addition, he stated that he is considering the possibility of buying these well-known vehicles in this cryptocurrency. The company presented a new strategy in a report to the US Securities and Exchange Commission, stating that its investments in digital currencies and other “alternative reserve assets” could grow. The value of bitcoin jumped almost 14 percent and reached a record high level.
Musk overturned Wall Street last year and briefly became the richest man in the world after Tesla shares rose 500 percent and the company became the fifth most valuable in the United States. After his last move, investors expect that a large number of other companies will decide to invest or own bitcoins. It is believed that this move will make bitcoin mainstream. We have to admit that this is not a surprise if we take into account the fact that this digital currency fought for its place in the period when it was created, and that it established its throne in 2011 when the value equaled 1 dollar. Today, the value of this currency is over $ 40,000.
We are increasingly noticing that this cryptocurrency is changing real money, that is, that many companies are happy to accept it as a means of payment for offering their services and goods. Today, with bitcoin you can pay for a luxury car such as Lamborghini and Mitsubishi, and you can also go on a luxury trip with your family, pay for accommodation, a plane ticket, and dinner at a luxury restaurant. In addition, many schools accept cryptocurrencies as a means of paying tuition. We can freely say that the popularity of cryptocurrencies is growing day by day.
Why is the value of bitcoin rising again?
Bitcoin has repeatedly been considered a total failure by being written off by successful investors. But in recent weeks, this oldest and largest cryptocurrency in the world has strengthened again. We mentioned the great merits of the owner of Tesla in that. Is it a new soap bubble or is it a real value?
Such growth is partly driven by institutional investors who see it as a safeguard against inflation in an era of major financial stimulus, caused by the pandemic, and which is attracted by the strengthening of regulations in the hitherto non-transparent crypto market. There have always been indications that bitcoin could be accepted as a mainstream means of payment.
PayPal Holdings announced in October that it would allow customers to buy, sell and store bitcoins and other virtual currencies using their online wallets. The company will also be able to use cryptocurrencies to buy from 26 million merchants on its network starting this year.
Bitcoin is the first decentralized “peer-t-peer” digital currency created in 2009. The main specificity of this currency is the fact that its eminent does not exist. on the other hand, the supply of this currency is software programmed and limited. Among other things, its basic characteristics are relatively secure payments, low transaction costs, the anonymity of users, virtually impossible counterfeiting, irreversibility of transactions, but also an extremely unstable exchange rate. Despite its many advantages, the use of this currency has been the subject of much discussion, as this currency offers the possibility of various abuses and criminal activities. The future of this and similar currencies in this regard depends on the security of the use of these currencies, as well as on the legal regulation of such payments.
What can you do with this currency?
The goal of investing in cryptocurrencies is to make and increase profits, and that is something that is achieved through trading or mining. Usually, inexperienced investors prefer to trade, because it is simpler and the sooner they make money. What is important is that you have a secure wallet, that is, that your money is maximally protected from hacker attacks. According to newsspypro.com, when trading it is equally important to choose a good platform. Today, unfortunately, many fakes disappear as soon as they take your money.
The second way of investing is a bit slower but very profitable. It’s about mining. Accountants play a major role in mining, whose job it is to dig blocks, whose collection leads to bitcoin. Every investor should know that his chances are higher if he joins one of the mining pools. Why is mining recommended to more experienced investors? There are several reasons. In addition to requiring patience and more time, mining is also a large consumer of electricity and requires investment in certain equipment.
What does the future hold for bitcoin?
The future of cryptocurrency is very bright and lies in corporate government digital coins – or, more likely, the uneasy coexistence of the two. A system that would allegedly be threatened by Bitcoin and other so-called bank killers assimilates them instead. Emerging cryptocurrencies may not even use blockchain, behaving more like Paypal or WeChat Pay than the cryptocurrencies we know today.
Where in the previous half-century corporations have grown to a size and influence comparable to nation-states, the next half-century could produce a new paradigm in which they will increasingly behave like nation-states. When we think about the way these companies already manage our data, the way they lobby our governments, the trend is obviously ongoing. We can say it is the next step of globalization.
In ten years or more, money will probably be almost unrecognizable compared to what we use today. The dream of universal monetary substitutes driven by people has collapsed because of this unexpected but inevitable institutionalization. The next Bitcoin will appear from the multinational world – wrapped in the spirit of a corporate brand, if not a sovereign flag. As for the big dream about releasing Bitcoin, let it rest in peace.