The rise of cryptocurrency in the last decade has puzzled many. They’ve argued about the economic implications and potential for financial disaster. Skeptics consider it something of a pyramid scheme, a bubble fit to burst at the first sign of trouble. Today, decentralized currency has once again shaken market futures as Bitcoin approaches $10,000 in value.
Over the course of the last year, the value of Bitcoin has risen nearly 1000 percent. Experts don’t expect this trend to stop any time soon, either. One hedge fund manager went so far as to say that Bitcoin may very well reach $40,000 by the end of 2018. This has early adopters celebrating. Governmental bodies and international organizations such as the IMF aren’t quite as enthusiastic. They see Bitcoin’s meteoric rise as a threat to monetary security across the globe. These institutions are equally concerned about the difficulty in tracking cryptocurrencies, a holdover from the early days when they were primarily used to conduct business on Darknet markets such as Silk Road.
All this begs the question: should you start investing in Bitcoin? According to many experts in the world of finance, the answer is a resounding “yes.” In 2018, expect far more institutions and business to adopt cryptocurrency as a form of legitimate payment. Japan did so just last April. With wider use comes more oversight from regulators. Though possibly contrary to the spirit of the currency, increased oversight and safety measures may entice mainstream investors to dip their collective toe into the Bitcoin pool.
Even more important than the subversive nature of cryptocurrency is the fact that it is in direct competition with Wall Street. Consumer confidence in the current financial system is at an all time low. Since the Great Recession, people now seek to find different ways to invest.
Where do you see Bitcoin going? Do you plan to invest in cryptocurrency? Or, do you think that it is just a bubble waiting to burst? Share your thoughts.