By Adegoke Muideen Abayomi
Bitcoin is a cyrptocurrency, a digital asset created in 2009, designed to work as a medium of exchange that uses cryptography to control its creation rather than relying on central authorities for its creation. Simply Put, it is an unregulated digital currency which can be exchanged for other currencies, products and services without the need for intermediaries.
Bitcoin is the biggest transfer of wealth in human history.
Over the years, Bitcoin has undergone rapid growth to become a significant currency both on- and offline. Some businesses have been accepting bitcoin in addition to fiat currencies since the mid 2010s.
This exchange enhancement alone as a development has made international transactions much easier, especially on the Internet. Statistically, more than 4.9 billion people use the Internet in the world as of September 20, 2020 according to Internet World Stats usage and population statistics. Whereas the whole world’s inhabitants is 7.8 billion in 2020 (world population data sheet).
At creation, bitcoin valued at basically nothing, and gained value from the mid 2010s ($0.003). The price has since then sky rocketed, and Bitcoin today is worth more than $18500 traded on several non centralised independent exchanges, such as Coinbase, Binance, Coinmama, Bitfinex, Luno, Bitstamp etc.
There are other cryptos or cryptocurrencies aside bitcoin. The top 5 list of coin from the coinmarket cap and prices as of 22/11/2020 are: BITCOIN (18520.95), ETHEREUM (564.79), XRP (0.441486), TETHER (0.999740), CHAINLINK (14.54) etc.
Presently there are 7743 coins existing on market cap. These numbers change overtime.
Bitcoins can be used to buy merchandise anonymously from anywhere across the globe.
In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation.
It helps facilitates a much faster, low-fee payment system for transactions across the globe.
Also, some people just buy bitcoins as an investment, hoping that the coins will go up in value (a store of value) and as we see it now, we can tell that digital currency is the future.
Not to talk about the numerous lives it has transformed in a decade, but the prospect into the future. Micheal Sonnenshein, managing director of Greyscaleinvestments, who is the largest digital currency asset manager with about $11 billion crypto assets said many people are getting out of assumption that because we can’t use bitcoin to buy coffee then it has failed as a currency.
In fact, the digital currency has gone far beyond that. Presently, many are beginning to accept this currency as payment method in their stores, as well as some countries accepting it as a legal tender.
The advantages, relevancies are in-dept far beyond what gold has generated in recent years. Some call it a digital gold, a store of value, by buying crypto and keep, people believe it can increase in value overtime which make a lot to continuously hedge this currency as the most viable next step in the evolution of money.
Bitcoin, a fintech invention and the world’s leading crypto by values and users becoming the biggest transfer of wealth in human history.
Consequently, the new generation understands better that the current financial system is flawed & unfair. They can’t endure such a disadvantageous system throughout their lives. What is the point of working hard all your life and the monetary yield garnered from your labor is constantly devalued?
The current system is broken and as such, a new system must emerge. The Bitcoin system is therefore a way out. Although, No one was completely certain that bitcoin will at one time rise to $20 thousand, $100 thousand, or even $1 million, but a decent number of crypto proponents are very optimistic it will happen, so far, the crypto economy has performed extremely well and has outshined nearly every stocks and commodities just in a decade.
Despite the downturn of Bitcoin on March 7th when the BTC Price dropped to $3800 overnight and over $1 billion worth of longs was liquidated causing one of the most intense squeezes in the crypto market history, the bitcoin price quickly bounced back and has shown more support in the last couple of months.
As at the time of writing this, just 7 months after, the asset has multiplie grown with about 500%. Yes, it is a wao, unbelievably growth, name it nothing has resulted into that flow within the short period of time in history.
As this currency continues to boom, heading close to the highest height created on 12/07/2017 when the price longed at 19876. The question now is, are we going to see price breaking through this major resistance which is a possibility for more plunge or would the price retrace downward to $12000? An opportunity many investors are looking at to acquire this asset.
Tyler Winklevoss (@tyler) tweeted on 22nd of October 2020 at 22:57 that “A lot of people spend time contemplating the risks surrounding #bitcoin. They completely miss the biggest risk of all, which is to sit on the sidelines and passively watch the greatest money and technological revolution of the century unfold before their eyes.”
For the new generation, Bitcoin will be the norm. This generation is fully connected to the Internet, so they know the importance of investing in Bitcoin.
They won’t invest that money the way their parents did, and they will be heading towards Bitcoin and this will make Bitcoin the largest wealth transfer in human history for years to come.
The uncertainty of bitcoin’s future is one of the numerous factors behind the rapid growth and volatility. Also, is the adoption (usability) with a prospect that many are yet to discover that this asset is a good signal which would set another new high and more.
Millions of people will exchange their fiat currency( dollar, Euro, NGN etc.) for Bitcoin which is the rarest currency in the world.
Time, therefore, favors Bitcoin, and this transfer of wealth will indeed take place in the future. Sooner or later, the seizure of power by the new generations will allow Bitcoin to achieve the goals of its revolution and standard.
Cumulatively, predicting the future could be a bit cloudy but the relative strength garnered so far has proven that this sphere has come to stay. For the past 10 years, considering the opportunities created and values, reasonable investors and forecasters look inward to what happens in another 10 years and not distracted by the noise it makes in between the time frame.