Will cryptocurrency become a new standard of currency that we can expect in the future? While the jury is still out on that, it seems that cryptocurrency enthusiasts and investors are betting big on it, to the point where bitcoin has surged to record highs where just a few days after the New Year, it was valued at more than $34,000.
One of the reasons why cryptocurrency like bitcoin has seen a rise in value over the years is because governments around the world are racking up larger debts than before. Countries are also printing more money, which in turns increases inflation and devalues the current value of money, like the US dollar which is at the lowest level since the spring of 2018.
As such, advocates for cryptocurrency claim that this new form of currency will protect against inflation. Cryptocurrency has also started to garner the interest of financial institutions and platforms such as PayPal, who a few months ago announced that they would allow its users to start buying, selling, and holding cryptocurrency, thus increasing its legitimacy.
That being said, bitcoin has seen its value rise and fall drastically over the years. In 2017, it rose from $1,000 to over $19,000, before dropping rather dramatically to $4,000 by the end of 2018. Whether or not this is a good investment to make remains to be seen, but for those who are interested in mining or buying it, its increasing value certainly makes for an attractive investment.
Filed in . Read more about Bitcoin and Cryptocurrency. Source: theguardian