Reading Time: 3 minutes Everything You Need To Know About The Bitcoin Boom
This is a money making post by Ellie Jo.
Right now, bitcoin is the biggest story in the financial world. Even big media organizations can no longer ignore it. The world is moving towards cryptocurrencies faster than ever before, and that’s being reflected in the incredibly high prices. A single bitcoin will now set you back nearly 50,000 USD, which is quite remarkable when you think about it.
So what’s going on here? Why is bitcoin in a boom and what’s driving it? More importantly, how can you cash in?
The Current Boom Is Being Driven By Corporate Participation
Many regular people – just ordinary investors and savers like you or I – are skeptical about digital currencies because they’re different from regular fiat money. We’re not used to it. And we worry that people won’t accept it.
That, however, changed tremendously over the last year or so. Major companies, such as Tesla and Mastercard, announced plans to allow bitcoin payments and transactions. And that means that it won’t be long before the method goes mainstream. Where one major company goes, others must follow to remain competitive.
The government is losing control of the situation. They still believe that crypto is flash in the pan – not something that will rewrite the economic playbook, but they’re wrong. It’s not just another form of payment. It’s competing directly with the fiat system, and it’s winning.
The Rise Of Exchanges Is Driving Demand
The rise of regulated crypto exchanges is also playing a role in bitcoin’s boom. You used to need special equipment and a broker to get hold of cryptocurrencies. But thanks to exchanges, anyone can buy crypto in both small and large quantities.
This accessibility is important. It’s working similarly to trading platforms. By making getting crypto simple, more and more people are entering the market. And that’s pushing up the price of bitcoin to hitherto-unseen levels.
The Value Of Regular Currencies Is Falling
The amount of money governments are printing right now is more than at any other time in history. They’re debasing the currency to prop up an economy hit hard by COVID-19. And they think they’re doing the right thing.
Of course, economic law will eventually swing back around and make their actions seem foolish. But bitcoin will likely save people who jump on the bandwagon early enough.
Why’s that? Well, bitcoin, unlike regular currency, is finite. You can’t just print more of it. And that’s why it will eventually become the world reserve currency. People will want to hedge local government currency risks by using it for wealth storage and all their major transactions.
It’s Becoming Acceptable
Lastly, bitcoin and other currencies are becoming more acceptable. In the early days, high-profile investors called cryptocurrencies “immoral” because they undermined government power. But today, the zeitgeist is changing. People don’t want to be beholden to the state. They want economic freedom. And bitcoin promises that.
Bitcoin, therefore, is a once in a generation opportunity to make money. Thanks to its inherent properties, it will continue rising in value over the long-term, making it somewhere you might want to think about storing your money.
Rachel is an Austin blogger, educator, mom, wife, young breast cancer survivor writing about health, saving money, and living a happy life in Austin, Texas.
Rachel has written for HuffPost and Hometalk and has been featured on KXAN, Studio 512, Fox 7 Austin, and CBS Austin.