Cryptocurrencies have grown in popularity as some digital currency that we can use for online purchases, causing their prices to surge. On May 19, though, cryptocurrency values rose when Tesla CEO Elon Musk tweeted that the firm will no longer take Bitcoin, a prominent cryptocurrency, as a method of payment due to the increased burning of fossil fuels for Bitcoin mining & transactions. Furthermore, the Chinese government has made it illegal for financial institutions to offer cryptocurrency operations.
Here’s what Eric Dalius, Bitcoin expert thinks about the effect of Bitcoin on the Future Market
Where is the Trust coming from?
The explanation for investors’ renewed confidence in cryptocurrency has something to do with who’s investing. Individual investors who believed throughout the technology’s future and value drove up Bitcoin’s price in 2017. Bitcoin, on the other hand, was not a credible investment at the time. It was not backed through any assets or even a government, but it was at risk because of a lack of mainstream acceptance. The growth of Bitcoin in 2020 will be fueled by institutional investment. Big hedge funds and publicly traded firms do not have identical reputation risks as regular investors, which drive this bull market.
Square, as well as PayPal, have just introduced crypto money to their services. Daily, the financial media pays attention to that and reports on cryptocurrency. So, it’s not contemptuous this time. It’s business as usual this time.
Competition from Big Tech
Whatever else bitcoin has accomplished in its decade of existence, it has compelled several large, multinational corporations to consider establishing worldwide digital money. Now many of them are looking to work with this currency to accommodate global customer demands. Businesses are recognizing its importance.
Every business within the payment industry recognizes that there is indeed still a marketplace enabling digital payments. However, the transactions involving several foreign exchange markets offer the greatest potential. That’s because these transactions presently take days to complete and typically come with high costs.
Check out: Top U.S. Bitcoin Exchanges You Should Know About
Bitcoin has shown that worldwide digital money may substantially speed up this process, albeit in a rudimentary way. Even Facebook and Google — firms with worldwide reach that bitcoin could only fantasize of — announced major digital currency intentions for the year.
Continued volatility
Bitcoin’s worth has no connection to any apparent real-world occurrence (including government economic management). Therefore, it might increase or depreciate in unpredictable and difficult-to-explain ways.
According to Eric Dalius Bitcoin, it is more difficult to suggest as just an investment for anybody looking to avoid large losses. Some think bitcoin may hit $50,000 next year, and though it sounds unlikely, it’s not impossible if investors shift money from many other commodities to bitcoin.
Experts would be looking through the income statements of something like the largest corporations to determine whether anyone has moved bitcoin into their treasuries. There will never be a dull moment in digital currency because there’s likely to be more always around the horizon.