Since the invention of Bitcoin in 2009, it has been a very wild and bumpy ride for Bitcoin miners and investors alike. As with any new infrastructure, there are going to be many hiccups and issues while developing and fine-tuning many variables. The issue is not only lying with the actual technology, but also the understanding of the general public and if the normal person will want to buy into Bitcoin.
With any new technology, there are a lot of questions and sometimes these questions have no answers. One question might be, should I trust Bitcoin? This is a very valuable question and it certainly is not an easy question to answer.
In traditional banks, in the United States, the money stored in your account is protected by the government in case of a time of crisis or theft. This security from the bank and government gives people a sense that their investment is overall safe and secured.
During this early stage of development and deployment of Bitcoin, this kind of guaranteed security is not available. Many Bitcoin users also have experienced other issues that cause frustration. Losing passwords, losing access to an account, losing Bitcoin to a broken-down computer are all examples of ways a person can lose their investment into Bitcoin.
With so many technical issues with Bitcoin, many people do feel they can't bring themselves to invest. However, many of us have heard from colleagues and friends that they are making big money investing in Bitcoin and many of the other forms of cryptocurrency. Bitcoin is by far the most well-known cryptocurrency, but a great many other coins have also been invented and are currently traded on the cryptocurrency markets.
Although Bitcoin leads the way in cryptocurrency, many other forms of the coin are starting to show a real breakthrough and catching on with cryptocurrency investors. Ethereum (ETH), Litecoin (LTC), Cardano (ADA), Polkadot (DOT), Bitcoin Cash (BCH), Stellar (XLM), Chainlink, and Binance Coin (BNB)are all examples of other types of cryptocurrency on the market currently, but none have reached the heights of Bitcoin. Bitcoin generally leads the market and the other forms of cryptocurrency generally follow. If Bitcoin goes way up, the other crypto will follow, and the same goes if Bitcoin falls in price.
The cryptocurrency market, since 2009 has experienced some massive market swings and that does not seem to be changing anytime soon. In 2017, after the market had been around for almost a decade, Bitcoin saw a swoop upwards. After starting the 2017 year at $975.70 price per Bitcoin, on March 25th, the price of a Bitcoin soared upwards reaching the price of $20,089 on December 17th.
Over the next two years, the price of Bitcoin and cryptocurrencies kind of moving sideways. However, the steep increase in the 2017 cryptocurrency costs truly helped place cryptocurrencies on the map of finance. A great many people who had never heard of cryptocurrencies in the past now were well aware Bitcoin and other coins existed.
As with any newer technology, it takes time for people to catch up and understand the new technology is even available. Figuring out how to buy into Bitcoin is another hurdle for beginner investors. By the end of 2017, many new investors had figured out how to invest, with the help of applications that help purchase, sell, and keep track of your investments. Through crypto exchanges like Binance, Coinbase, etc. They were able to get exposure to the crypto market as well. You should check out this list of the top crypto exchanges here.
After the 2017 boom, cryptocurrencies once again plummeted well below 10,000. However, in June of 2019, cryptocurrencies saw another mild boom and Bitcoin surpassed the 10,000 per Bitcoin price. This opened a lot of eyes of people who wanted to invest in cryptocurrencies, but still no big boom came, with Bitcoin topping around 10,000 and falling in December to $7,112.73.
Cryptocurrencies would settle down and not fluctuate greatly until the year 2020 hit with a worldwide pandemic affecting every institution in the world. The pandemic also had an immense impact on cryptocurrencies and Bitcoin. Beginning 2020, cryptocurrency was down, along with Bitcoin being at $7,200 per Bitcoin. With so much stability loss from the pandemic, much lost faith in traditional investments and looked to Bitcoin.
By the end of 2020 Bitcoin had taken off again reaching the cost of $18,353 on November 23rd. With people receiving stimulus checks and the faith in the stock market down, these stimulus checks went into cryptocurrency investments. After the stimulus checks were received, investments skyrocketed.
In December of 2020 Bitcoin rose to $24,000 which was an increase of 224%. By January of 2021, crypto had exploded and raised above its previous highs. In January of 2021, Bitcoin reached $40,000 per Bitcoin. The sky seemed the limit when Bitcoin rose to $64,000 on April 14, 2021. Since the high of $64,000, all cryptocurrencies have seen a decline in price, lowering to around $30,000 at their lowest.
The future of cryptocurrencies is very difficult to understand in part or in full and that makes it difficult to predict the future. While many cryptocurrency investment enthusiasts see the sky as the limit for how high the prices can go, many don't see it that way. With so much to be learned about cryptocurrency technologies, there are a great many concerns raised by investors.
From cryptocurrency technology having different issues to the effect, it may have on traditional financial systems, there are many swirling questions from the financial sector and the investors. Many see a big change coming from cryptocurrencies, but many don't understand what those changes may actually be. As more investors and even institutional money enter the market, it is a sign of big things to come.
Many are looking for the future of cryptocurrencies to get a helping hand from certain institutions, such as the Nasdaq. If cryptocurrencies were floated into the Nasdaq, crypto would certainly experience more credibility from investors and the general public. With so many variables involved with cryptocurrency, there is certainly one thing that is certain and that is that there is nothing certain about the future of cryptocurrency.