Is Bitcoin A Bubble, Swindle, Or A Scam: What You Should Know
Bitcoin has gained quite popularity in 2020. Even though the world was in chaos due to the pandemic, bitcoin's popularity kept on rising.
13:17 25 January 2021
When the pandemic shook the world, the price of Bitcoin dropped close to $3000. Experts started predicting that 2020 might be the last year for Cryptocurrencies and Bitcoin. However, we are already in 2021, and Bitcoin has already bounced back by 1000%.
Is Bitcoin A Bubble, Swindle, or Scam?
If one evokes such thoughts even after seeing how it has performed in the market, it raises questions on their judgment and sophistication and wonders whether they can be in charge of financial affairs.
Last week, Bank of America's security chief stated that Bitcoin is here to stay. And he cleared his state by seeing how it has performed in the last six months.
What Is Behind Bitcoin’s Latest Slump?
A variety of factors play a part in manipulating the price evaluation of Bitcoin and other Cryptocurrencies. The most obvious factor is that the price of the Bitcoin fluctuates on the volume of exchanges., if the market is active and high-volume exchanges are happening in the market, the price will vary significantly.
The Bitcoin trade market is fairly new. Hence, even a small trade can bring in huge fluctuation.
So, if traders feel like that the moment has come where traders will start selling off their Crypto assets, that is the time when you will see the value of Bitcoin and another Cryptocurrency going downwards. This same phenomenon happens when Bitcoin reaches almost $42K during the second week of 2021.
Hear What Experts Have to Say
There have always been several critics who always stand against the existence of Bitcoin. For instance, Warren Buffet has warned the new investors to keep their distance from Cryptocurrencies.
On the other hand, there are supporters as well who are fond of the whole Cryptocurrency thing. For instance, the Winklevoss brothers believe that Bitcoin is the future currency. If anyone invested today will hold an advantage as a first mover in the future.
Regulation Regulatory for Bitcoin
After a Bitcoin scam in China, China banned the use of Cryptocurrencies. This created an uproar in the Crypto trade market. Cryptocurrency has already been facing regulatory problems; however, after this event, it became even more difficult. People thought that the Crypto bubble would soon burst.
However, with the second successful rally in 2020, Bitcoin clarifies that it is not a bubble in the market just to burst. The price of Bitcoin keeps on rising, hitting all-time best one after another.
After reaching its all-time high market price of almost $42,000, its price dropped considerably. This was due to a phenomenon we talked about earlier. And again, people have started talking about Bitcoin being a Bubble.
Bitcoin being a decentralized digital currency, people will always point their fingers at its authenticity. It is up to you whom to believe: the people who have never entered the investment or the performance Bitcoin and other Cryptocurrencies showed in 2020.
The Future of Bitcoin
The future of Cryptocurrency seems bright as of now. And all the thanks go to 2020. It was 2020 that proved that even in the direst of situations, Bitcoin can perform and how its decentralization is a boon. When COVID 19 broke the global financial infrastructure, the least affected industry was the Crypto trading industry.
In fact, the Cryptocurrency industry flourished in the pandemic environment. This highlighted the loopholes of the traditional financial infrastructure and how Cryptocurrencies can be used as an alternative to cover up those loopholes.
Why Buy Right Now?
There are three main factors currently influencing the price of Bitcoin:
- Media frenzy.
- Failure of traditional financial infrastructure during the lockdown.
- Comparison between Bitcoin and Gold.
At a time like this, when governments are offering massive stimulus packages- it can certainly trigger inflation. Experts believe that this is the right time to invest in Bitcoin and Cryptocurrencies due to the rise in economic stress and inflation.
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