Bitcoin, the most speculative asset of modern history. We can debate on the term “asset” but the popularity this cryptocurrency has gained in the last five years alone, speaks volumes about its future. In early 2017, Bitcoin crossed over US$1,000, today it is traded above US$60,000.
Last year, Bitcoin pushed itself to break the US$20,000 barrier in February and here we are 14 months later, it has sailed over the US$60,000 cap, a feat not many attributed to this cryptocurrency couple of years back when its price took a massive nose dive. Bitcoin’s total worth is about $1 trillion.
Is there anything that will stop Bitcoin from appreciating?.
What is its future?
China seems to be going for Digital currency and that could provide less dependence on US dollar.
Robert Kiyosaki. A famous author of the book “Rich Dad Poor Dad” heavily presses upon the importance of buying bitcoin. He believes the real assets are Bitcoin and Gold, not the U.S dollar as it is quickly evaporating in a thick haze. The question is, can Bitcoin really Replace The U.S. Dollar?
Anyone who says “money doesn’t make you happy” is sick puppy who has never been broke. Money is a drug. It makes people happy. Problem is when drug wears off people get unhappy. Buy gold silver Bitcoin real money and stay happy.
— therealkiyosaki (@theRealKiyosaki) March 21, 2021
Another concern is, what if Bitcoin is still a Bubble as Warren Buffett once said, there’s a huge cover of dark clouds hovering over Bitcoins’ future but there’s something that is clinching to it tightly keeping this cryptocurrency alive.
People are afraid of things they do not understand. They doubt that Bitcoin is not a productive asset. While you get rewarding dividends when you invest in stocks and become a part of that particular business, you only make money when the business succeeds. There’s nothing of that sort by holding a chunk of Bitcoin. While you speculate the outcome as you pay for Bitcoin, a thought-provoking question is — how much to pay for Bitcoin as it does not produce earnings or any cash flow like a stock investment.
The high surge in price is attributed to Elon Musk’s decision as he bought $US1.5 billion of bitcoin for his company, Tesla, earlier this year.
Is Bitcoin safe for the environment?
Bitcoin is about $1 trillion but at the cost of the environment. In an interview, Bill Gates said:
Bitcoin uses more electricity per transaction than any other method known to mankind, and so it’s not a great climate thing.
Bitcoins are generated via a process commonly known as mining that uses supercomputers to verify authentic bitcoin transactions. When some complex math equations are solved, the miner is rewarded with bitcoin. To achieve more mining results, miners have established huge industrial parks and warehouses that have supercomputers known as mining machines. These supercomputers consume a lot of energy.
The high consumption of electricity generates a huge carbon footprint. To put things in perspective, ten minutes of mining costs GBP 200,000 worth of electricity and this power consumption is twice the amount of power consumed by Facebook, Microsoft, Google, Amazon, and Apple combined accumulating to 120TWh (Tera Watt Hour) of electricity. It is safe to establish that mining consumes energy equivalent to or above the average annual electricity consumption of many small countries combined. This article covers the environmental concerns in detail.
Regardless of the fact that bitcoin is not a solid asset, there’s no point in delaying the inevitable anymore. Crypto is a reality, it is going to hang around and stay. Even a famous portal WallStreetBets is now talking about crypto as they avoided discussing it in their posts amid overtaking the stock market discussion.
Will Bitcoin price surge past the $100,000 barrier?
Richard Byworth is a chief executive officer of Diginex Ltd. His company, a digital asset financial services provider is listed at Nasdaq. Richard believes Bitcoin has all it takes to go past $100,000 within the next 4 months.
Well, this makes sense. If Bitcoin is able to hold on to its current market share, the price may go beyond the $100k barrier.
It is also important to understand that not all investment needs to go to Bitcoin. Like myspace got knocked out a decade back, history could repeat itself again.
The future of the money could be cryptocurrency. Will it be Bitcoin?