The second half of December 2020 will be remembered for an important milestone that many of us had been waiting for since last October: Bitcoin exceeded its historical value, its All Times High (ATH), reaching up to 23.000 USD.
This great moment of cryptocurrency has made more than one wonder how to invest in Bitcoin and which platforms like IQ Option gain more relevance. As is the case with Michael Saylor, CEO of the Microstrategy fund, who publicly revealed that he had bought 17.500 bitcoins.
Since that December 16, the world of finance and the international economy has been divided into two opinions:
- Those who embrace the future of bitcoin as a common and current means of payment and assure that will not stop growing
- Who say that it is nothing more than a new bubble.
Could it be that bitcoin returned to stay above 20K? Or are we talking about a new #ATH that will fall within a short period of time?
Here are some reasons why we might think that the Bitcoin landscape is different than the one that lived in its previous #ATH of 2017.
1. Nature of Bitcoin
Bitcoin, like the rest of crypto assets, is a world that we have not yet fully explored and we have not finished understanding.
We are talking about liquid moneyIn other words, versatile money that maintains its value in all countries of the world!
Being the first cryptocurrency developed with blockchain technology, is the most important of all: the one that has experienced more profits, falls and has lived in the public eye more than any other.
These sudden growths of enthusiasm have made it grow in value as in 2017, as well as collapse due to the suspicion that its investors still have about such a novel good.
Today we are no longer in 2017. And since the governments Every day they react to the world of cryptocurrencies, we can say that this time it is more current than ever.
Furthermore, we are talking about an increasingly scarce good. And if we know something about investments: the scarcer, the more valuable.
2. A More Digitized World
In financial terms, the coronavirus pandemic has negatively impacted traditional businesses and benefited digital ones.
This new wave of digital businesses needs a versatile currency to expand its markets.
Some cryptocurrency investment platforms such as Binance y Coinbase They already have VISA debit cards that allow you to pay with Bitcoin at any establishment.
This scenario was perfectly understood by PayPal. During the next year it will accept payments with cryptocurrencies on its platform and it already allows purchases of bitcoins in the United States.
In fact, this announcement was one of the Principal reasons for Bitcoin to skyrocket in October 2020.
If an ad made you beat your #ATH, what can we expect when it goes live and businesses discover its benefits?
3. The Instability Of "Traditional" Money
Today more than ever, we do not have a "benchmark" currency of stability in any government in the world. Investments during 2020 have been strongly directed to assets such as Gold and digital companies. Sure, in addition to Bitcoin.
A clear example is the Sun, which after enjoying years of stability is experiencing a strong negative impact because of politics and the pandemic.
This has been causing great losses in its users when making transfers or saving in a specific currency because their earnings depend on the decisions of governments.
If we look at the history of Bitcoin, we know that neither is it a good with such stability as many would like to think. However, the stage is perfect to win it.
And not only Bitcoin, but this growth can open the doors to the different cryptocurrency options that we currently have in the market, such as Ethereum, Ripple, Entre otras muchas.
4. The Wave of Popularity
Now that we all talk about Bitcoin, we are not surprised by its tendency to rise. But What will happen when this wave of popularity stops? Will it oscillate between 12K and 15K again as in years prior to 2020?
These questions are impossible to answer, since we are talking about an unprecedented asset in the world. But what we can say is that during 2021, we will have bitcoin for a while.
The main reasons why Bitcoin will continue in 2021 are the following.
- The activation of Bitcoin as a means of payment in the world through PayPal
- The regulation of Cryptocurrencies in many countries of the world, in response to this phenomenon
- The post-global economic crisis of COVID-19
Normally the popularity of a financial asset is accompanied by an increase in its value, but like everything in the world of finance, it is impossible to ensure it.
The real question is How much will Bitcoin grow?
*The opinions expressed in this article are those of the author and do not necessarily reflect the views of the administrators of The Crypto Legal blog or the Lawgic Tec association.