(Via ZEXPR) Cryptocurrencies have been around for a little over a decade now. It all started with the introduction of the Bitcoin blockchain which kicked off the revolution of the digital financial marketplace. Ever since its introduction in 2009, Bitcoin has seen ups and downs and it never truly stabilized. It would shoot up one day and crash within a few months.
The Investment Center broker Michael Cohen explores the crypto mania that has currently taken over the market and what more is to come within this sphere.
In 2017, Bitcoin saw one of the most well-known rises in its history. It shattered the expectations of economists who had predicted that it might break the $10,000 mark but Bitcoin was able to go further. At one point in 2017, Bitcoin was at $30,000 which boosted the confidence of investors to quickly join in all the rage and make profits.
However, within a few months, Bitcoin crashed and it was severely devalued. After 2017, Bitcoin has gone up and crashed repetitively and never really recovered until the end of 2020 when it shot back up.
In the first couple weeks of 2021 Bitcoin soared to great heights even crossing the $50,000 mark a couple of weeks back. And for obvious reasons investors were still wary of bidding on Crypto fearing a similar crash like in 2017 especially considering the global chip crisis in the world right now. Due to chip shortages, independent miners cannot keep up with the Bitcoin blockchain as well as Crypto is introduced to more financial markets.
The primary reason why investors and economists are hesitant to giving their full support to Crypto even though they know that it is the future regardless of the crashes is that no significant entity has contributed to Cryptocurrencies.
Bitcoin has enjoyed healthy growth over the last 10 years but it never truly went mainstream as a corporation were still no buying the concept of paying with crypto concept and no major company was willing to transition to Crypto payments. This all changed this February when Tesla Inc. Purchased over 1.5 billion dollars worth of Bitcoin to show its support to the Cryptocurrency.
Tesla And Bitcoin
Tesla is a major automaker that is among the most valued companies traded on the NYSE with millions of investors and traders actively shifting their trades based on the moves made by the company. Before not a lot of traders would have actively traded with Bitcoins or other Cryptos but that all changed after Elon Musk the CEO of Tesla made sure that Crypto had its day in the spotlight.
Before the announcement, Elon Musk had repeatedly supported different types of decentralised Cryptos and he relayed his perspective to millions of his Twitter followers.
After multiple tweets where he supported all types of Cryptocurrencies, Elon’s automotive company Tesla eventually announced that it would purchase 1.5 billion dollars worth of Bitcoin as an initial investment with other planned purchases to occur in the following months. This move greatly boosted the reliability of Bitcoin as for the first time a company that is well known among the masses was diving into the world of digital currency.
Transition To Bitcoin
Tesla made history when it chose to side with Bitcoin. While it still didn’t guarantee that Bitcoin would not crash, Tesla did help it enter the mainstream market place. Some argue that Bitcoin was already mainstream but the undeniable fact remains that Tesla will be one of the first companies that have the respect of millions of consumers to fully transition and implement a system for purchasing their products and cars via Bitcoin.
The Investment Center broker Michael Cohen remarks on this matter, “Tesla accepting Bitcoin as payment may not sound like a big deal but it is since, for the first time, a well known international brand has taken interest in an international Cryptocurrency.”
Bitcoin is still volatile and there are still some critics who consider this move a publicity stunt. But the fact that a manufacturing giant has started to accept Crypto as payment is the best thing to ever happen to the average consumer.
What Does This mean?
Bitcoin still has a long way to go. It has earned respect as a result of Tesla’s move but the only way it can go completely mainstream is if it expands its blockchain network to service more people and enter more markets. Only then it has a chance to become a reliable currency that is not only decentralised but also stable enough for the average consumer to use it in their day to day transactions without having to worry about delays in verifications.
The Investment Center broker Michael Cohen says, “Tesla has indeed taken a risky step by going all-in with Bitcoin but if successfully implemented, Tesla’s Bitcoin payment system can be beneficial to not only the company but can be a blueprint for other companies to develop their own Crypto payment system as well.”
Crypto has a long way to go and the only way to speed up the process is to expand the Blockchain network and ensure that there is enough support for each Cryptocurrency so that it can stabilise at a quicker rate. For now, Bitcoin seems to be stable but only time will tell if it can enter the mainstream market place unscathed.
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