What Will Be the New Peak of Bitcoin? Yes.
Photo by Dmitry Demidko on Unsplash
With the events occurring around the world and the many uncertainties of the financial market, Bitcoin seems to be a name that gets passed around. In 2009 very few people knew about the project, but over the course of 10 years Bitcoin has become as famous as any actor, singer, or pro sports athlete. With the significant rise in 2018, 9 years after its inception, Bitcoin caught the attention of the mainstream media.
When factoring what led to a rise in the price of Bitcoin, there will always be many possible direct and indirect factors. Here is a list of possible factors:
- Economic uncertainty and monetary inflation
- Countries’ affected fiat currency instability such as Argentina and Venezuela
- Adoption by stores and businesses as a payment alternative
- The rise in price creating more rising value
- The ability to store value even if volatility is factored in
- Potential decrease in stock market values or the bear years
- Political conflict and political differences
- A relatively stagnant gold and silver pricing over the past few years
- Banks not offering financial incentives like increased interest rate on savings accounts
- Relatively minor transaction fee
- Relatively easy to buy when using exchanges
- Ability to be stored either in cold or online wallet
- Increased accountability concerning balances and transactions
- A new way of banking that is completely different from previous notions of banking
- Ability to send and receive with the use of internet
- Ability to mine with computers
While this list does not pretend to be extensive, there are certain factors that can lead to a repeat situation of the rise of Bitcoin. I will also not go over the halving discussion as there are probably many stories already covering this situation. How high the peak will be this time? No one knows. Amounts from its breakout value in 2018 of $19,650 to bullish territory of $100,000 to $8,000,000 have all been stated by numerous financial prodigies within the next decade. Other financial prodigies are less bullish.
But should predicting the peak matter? From the initial time that Bitcoin was created to this year, what has been the overall increase in return on investment been? Even if it has had a bit of the bear years, it still has beat some of the other markets such as gold and silver or stocks overall.
While predicting the specific number would be impressive, knowing the uses and the way Bitcoin can serve as an option to the amount of financial instruments available is more interesting. Not only financially interesting but also culturally. As wallets and exchanges become more user friendly with time, it will be interesting to see the adoption of mainstream outlets and businesses who would like to be a part of the economic renaissance. How will Bitcoin help in alleviating poverty or the needy through charitable donations? How can Bitcoin be used to help solve real financial difficulties? How will Decentralized Finance solve the difficulties of getting a loan? These are all important questions that will be answered in the next years and decade.
This does not constitute investment advice and serves only as a reminder of the potential use of Bitcoin.