Bitcoin has been around for around ten years and has spearheaded the cryptocurrency revolution. The exchange rate is extremely volatile and there is no method of regulating the flow. The concept runs on a blockchain system with all payments added to a volunteer managed roster. Although viewed as a positive force by some, cryptocurrency also has negative connotations and can be linked to online crime including black market drug and gun trafficking. However, as the currency continues to lean towards acceptance, we can track trends on an annual basis.
Disregard of price forecasts
So-called experts claim to predict the future of Bitcoin’s value. However, the truth is that it is so volatile that the slightest change in the world can cause it to spike up or down. With that in mind, investing mostly in Bitcoin is a huge gamble. You should only invest in cryptocurrency if you know what you are talking about – people have historically lost assets after investments didn’t pay off. However, if you want to exchange your hard-earned regulated currency, it pays to choose the right one. Websites like Best Bitcoin Exchange can help you decide which exchange to use.
Regulation on the go
Governments around the world are reaching for control of Bitcoin and other cryptocurrencies. Expect a battle against widespread money laundering and tax evasion through crypto in the course of 2021. In the US, for example, capital growth can be taxed through cryptocurrency. This is a nudge in the right direction and shows that regulation of crypto is potentially achievable.
The use of Bitcoin and other cryptocurrencies can be expected to grow in acceptance in 2021 and beyond. You can see this trend in 2020 as digital wallets like PayPal now allow Bitcoin to be traded. Over the next year, large banking groups are likely to move to storing cryptocurrencies or investing in the coin themselves.
Big tech competition
Bitcoin, for all its flaws, has forced global giants to scramble to offer global digital currencies. There is still a market for an international digital currency to take center stage and reach the mainstream. A shift can already be seen in this regard, as Google and Facebook are preparing for entry into digital marketing. Their currencies aren’t huge yet, but they could hurt Bitcoin’s growth if they withdraw.
Bitcoin’s value has no anchor in the real world, which is why it is so prone to random spikes and drops. With this in mind, investing in Bitcoin will continue to be a risky game. However, there is a chance it could pay off.
Although Bitcoin has been around for a decade, it is still in its infancy when it comes to global practicality, regulation, and adoption. Things are starting to move in the right direction, however, and it will be interesting to see where the Bitcoin roller coaster goes next.