Bullish Bitcoin

The crypto market capitalization is a disruption to the money and financial markets. Bitcoin was the first crypto currency created in 2009; the value on the first day of its creation was $0.0008. Bitcoin has experience good rallies from the inception. Interest in Bitcoin surged in Dec 17 2020 to $23,000.00 and it became a gold rush.

There are presently 18.5 million Bitcoins in global circulation and it now has a market capitalization of over $428 Billion. Bitcoin is the first blockchain established cryptocurrency in the world. It is the most widely used and prosperous since its launch in 2009. Most investors holding the currency sees it as a hedge against inflation which is the single factor driving the increase in value.  

Bitcoin is a virtual currency that it is increasing in value and might be the legal tender of e-commerce in years to come. A single Bitcoin is a computer file which is stored in a digital wallet on a smart phone or computer. Every transaction is recorded in a public list called the blockchain. Like fiat money Bitcoin has three processes of creation which is, one could purchase Bitcoin with real money, it could be obtained based on transaction and could also be created using a computer.

Bitcoin has the real value of cash, which is means of payment, medium of exchange and a legal tender. Its exchanging power is determined by a process called mining which is a person is setting up powerful computers just to get Bitcoin. Its strong valuation is because people are willing to exchange Bitcoins for real goods and services, and even cash. Its global acceptance will soon overtake government and bank controlled currencies. Every transaction is recorded publicly; its value is highly secured making it difficult for anyone to copy Bitcoins or easily creating a fake one.

The fear and concern of the government is theft which is majorly from hackers and the no regulation syndrome it represents. The volatility of the currency is an issue and it makes it highly risky. Bitcoin has 66% of the total cryptocurrency market in 2020. It went on an all time high January 2021 to $40,000 per Bitcoin. It is more like an investment than exchange for goods and services because most investors know that the value will still be pushed up and many people shall want it in the future.

The call for regulation from many financial authorities is that money is created and transferred without the monitoring of central bank authorities which are created by laws. The difference between cryptocurrency and government backed currency is clear to see. The rise in value of Bitcoin from its creation in 2009 is the reason investors are clamoring for it.

The bullish run of Bitcoin since 2009 makes it the new digital gold. Like physical gold which is extracted from the earth Bitcoin requires real computational power for it to be mined. Bitcoin has reputation and stipulation which is tied to its source code. This singular reason makes it finite and has a limited supply. There will only be 21million Bitcoins ever produced and 18.5million is already in circulation. The investment and high returns it brings in the future is irreplaceable.