4 Reasons Why People Get So Obsessed With Bitcoins

0
Image soure: unsplash.com

Bitcoin emerged like a digital currency meant to be a competitor to financial institutions with its low fees and quicks transfers. As Bitcoin grew, so did the interest in this rather new and confusing currency that seems to be gaining value and attracting even seasoned investors who saw the potential and opportunity for some fast cash. The general public, in the beginning, was buying the coins just out of curiosity without any intention or insight into what the Bitcoin will become in just a few years.

The value of the Bitcoin increased quickly sparking the collective insanity where everyone, all of a sudden, started chasing the best deals, bonuses, and waiting for the Airdrops. Other cryptocurrencies started popping up but, to this day, not one gained such popularity and piqued the interest of the public. So, what caused such a mass hysteria that created a community of red-eyed Bitcoiners following its every move on the market chart?

Source: NewsWatch

The value

The most obvious reason why people rushed to buy as many coins as they could get their hands on is the unprecedented increase in the value of Bitcoin. This year only, Bitcoin went from around $4000 for one coin, to close to $20,000 in eight months. If you’re familiar with cryptos at all, then you know how notorious they are with massive fluctuations. Regardless, investors, big and small, are still looking to buy and sell the currency in hopes to earn some fast cash.

The lucky ones who bought Bitcoins a decade ago and held on to them are millionaires today. This is exactly what fueled the craze about cryptocurrencies. Many could already picture themselves enjoying the rest of their lives in the mansion in the Bahamas, before even purchasing a single coin. The illusion of luxury life that can be reached only by a few clicks took over the generations of young investors who saw themselves in the role of the wolf from the Wall St.

Source: Medium

The adoption of cryptocurrency

Recently Bitcoin adoption as the method of payment accelerated massively. The number of people getting e-wallets via mobile apps grew by over 1000% in the last year. Everyone, from retailers to financial institutions, started paying attention to the unstoppable acceptance of cryptos, jumping on the bandwagon not wanting to miss out on the opportunity to get their piece of the digital pie.

Online paying services, like PayPal, rushed into the game allowing their users to buy and sell using Bitcoin. Many others followed, and almost in an instant, digital coins became the preferrable form of doing business online. Even the naysayers went silent stunned at the rapid growth of the cryptocurrencies and their mass adoption by banks, big and small retailers, online casinos, and many others. At the moment, it seems like the future of online transfers lies in the digital coins leaving the paper bills for the collectors. Is this just another financial bubble that’s going to burst and drag down everything in its wake? Only time will tell, but so far, it looks like Bitcoin is quickly taking over the financial systems all over the world.

Source: CoinDesk

Wall Street support

For a long time, Wall St was wary of Bitcoin. It was a currency that was not regulated by any government, nor it had any internal rules and regulations set in place. In addition, it’s not tied up to any commodity, like gold or silver, so it was hard to predict its price. The fluctuations were so volatile sometimes that everyone was keeping their eyes wide open expecting the cryptos to crash. In other words, it was a very different currency from anything they’ve known and very few were willing to take the plunge and invest in coins that were created “out of thin air”.

Not only that Bitcoin didn’t crash, but its value grew to gigantic proportions. This was completely unexpected by the old-fashioned traders who were convinced that nothing can survive such massive oscillations. But the biggest surprise came from the CFOs and CEOs of the major banks who publicly announced that they added thousands of Bitcoins to their private and business portfolios. Investors who stubbornly denied the value of the cryptos were dumbfounded. The reputation of the digital coins increased along with its fame and hysteria ensued. The limited number of coins only added fuel to the fire and the hunt was on.

Source: InsideBitcoins

Bitcoin overcame all hurdles

Cryptocurrencies are famous for their volatility. The Bitcoin was declared dead hundreds of times in the media, and yet, it’s still here stronger than ever. The truth is, there have been many occasions when Bitcoin went into freefall, but it always came back recovering and recuperating from the hit. In time, customers figured that those dives were a part of the cryptocurrency’s nature, simply because it wasn’t backed by anything, so massive ups and downs are to be expected.

Out of all this, one question keeps lingering: after everything said and done, should one invest in Bitcoin?

There is no short answer to this. Bitcoin is not your safest bet on the market, but it’s the one that can bring you enormous profits if the climate is right. If you’re not willing to take the risk, then Bitcoin is not for you. Honestly, if this is the case, stay away from the exchange markets completely. The volatility of the cryptos will always be present and no one can tell you whether or not, and when, the coins will retrieve or surpass their previous values. Based on the historical price data, Bitcoin will continue its rise for many years to come. Take a look at the latest news, opinions, and charts at bitcoineranew.com. Will it ever take the place of paper money and metal coins? It sure looks like it, for now. However, don’t rely on forecasts and speculations. Bitcoin proved to be one of the most sought-after investments in the past few years, but many others throughout history were too, only to disappear from the charts forever.

The risk is substantial, but the upside is even bigger. So far, Bitcoin is fulfilling the expectations of the investors.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

  +  42  =  52