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The history of Bitcoin over the past decade and why you should still invest
Since its inception in 2009, Bitcoin has made millionaires out of thousands of people, even those with small initial deposits. So is that why it’s become such a huge phenomenon across the world or is it because it’s one of the safest, most secure payment methods that we’ve ever had?
Cryptocurrency is continuously growing in popularity as more and more people invest, especially in Bitcoin, and more companies allow people to use crypto as a payment method for their products. We know what you’re thinking - is it worth investing in Bitcoin now or have I missed the boat? To the contrary, the boat is, in fact, still worth jumping aboard, especially since Bitcoin has seen a huge boom during the start of the year.
People buying Bitcoin
It’s difficult to know how many people are truly using Bitcoin, especially since there is so much conflicting data. However, what we do know is that the figure is in the high millions, with Yahoo estimating that in the US alone, over 20 million adults own Bitcoin, whilst other media outlets estimate that over 100 million people worldwide use the cryptocurrency. You can see our Spanish language comparison page here:
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This bodes the question - are the American public seeing something that the rest of the world isn’t? Are they diversifying their investment portfolio because they see the benefit and the value retention of Bitcoin above other investment types and opportunities? That could answer why the estimated 14% of the entire country own Bitcoin in 2021.
We all know that the chain of invention - supply and demand, so it’s no surprise that since Bitcoin has seen such a surge in popularity, the introduction of trading platforms dedicated just to Bitcoin have emerged. These cryptocurrency automated trading platforms have proven especially popular with first-time investors, or those who are looking to spend little time on the “hard work” aspect of investing. These platforms use intelligent bots in the background to identify key market trends and the best deals on the market. The trades will then all take place automatically without the need for the end user to do anything other than press “live session”. Most of these platforms even allow users to set risk levels as well as parameters for expenditure meaning it’s a far safer way of investing than the average stock market platform.
Bitcoin crashes through the years
Bitcoin hasn’t been without its bad publicity, however, especially since there have been crashes throughout the years. It would be impossible to expect a currency not to fluctuate, especially one that is relatively new and in constant competition with new and emerging cryptocurrencies like Ethereum.
There was such a huge crash for Bitcoin back in 2018 that the crash itself has been dubbed “the cryptocurrency bubble”. Losing more money than the infamous 2002 Dot-com bubble, this crash saw Bitcoin lose 80% of its value. The price of Bitcoin was so low in December of that year that
many financial experts were claiming it to be the end of the cryptocurrency phenomena. But Bitcoin proved the experts wrong and bounced back, inspiring even more people to buy and invest in Bitcoin, ensuring further global usage growth. Bitcoin’s second most talked-about crashes came in April of 2021, with the crash meaning it lost over a fifth of its value in less than 7 days. It wasn’t just Bitcoin that took a massive hit, however, with other cryptocurrencies seeing a very similar drop in value. Overall estimates suggest that the cryptomarket lost near to 300 billion dollars.
You might think that because of the crash, Bitcoin is set to have a dismal 2021 but this couldn’t be further from the truth. Even with the crash and its rippling effect on the market, Bitcoin is still outperforming 2020 and has seen its value double since last year. Why? Because it always seems to bounce back after a major crash which in turn, makes the demand increase and drive the value up.
Crashes in the market aren’t the only issues Bitcoin has had to deal with; hackers stealing millions of dollars worth of Bitcoin over the past decade has had people question whether this really is a much safer currency. However, Bitcoin has since improved its security measures with tightened encryptions, in the hope of protecting its millions of users and their investments from further malicious threats.
Big investors of Bitcoin
There are many big names associated with Bitcoin, especially those from the innovative tech world, and when it comes to investors, this is no different. From famous investors ranging from Elon Musk’s Tesla to Tyler and Cameron Winklevoss who are now aptly dubbed the “billionaire twins”, Bitcoin isn’t short of media attention when it comes to celebrities using their currency.
One of the most interesting ‘big’ investors of Bitcoin is Shark Tank’s Kevin O’Leary, who once famously dubbed the cryptocurrency “rubbish” but has since invested heavily in Bitcoin and is a prevalent speaker of the cryptocurrency. He himself has diversified is own personal wealth and has over 3% of his own wealth in crypto.
O’Leary’s hugely successful fund management company has diversified their holdings into cryptocurrency as it is now being more widely accepted. O’Leary, however, is concerned that the ethics and compliance of Bitcoin in different countries is going to prove challenging. To counter this, he only works with crypto mining companies that are compliant with human rights laws which he dubs the “virgin Bitcoins”. The reason behind this is that institutional funds such as pension funds questioned the source of the Bitcoins to ensure that they comply with their sustainability and social responsibilities.
The most talked about big investor of Bitcoin is undoubtedly Elon Musk. Musk speaks openly about his investments with Bitcoin, why he believes that the cryptocurrency is the future of currency as we know it and what he plans to do with it in the years to come. Interestingly, Musk bought 1.5 billion dollars worth of Bitcoin for Tesla, and it’s speculated that Tesla will make more from its Bitcoin investments than from its very own sales.
It’s not just tech CEOs that are backing Bitcoin - world renowned musical artist Snoop Dogg is a huge ambassador for Bitcoin, having allowed people to buy his 2013 album using Bitcoin. It’s reported that Snoop has invested millions into the cryptocurrency market over the years, although it’s not known how much profit he’s made. As of March 2021, Snoop has always released his first NFT collection on crypto.com which allows music fans to pay in Bitcoin and other cryptocurrencies.
Where is Bitcoin heading?
Bitcoin is still the most popularly used cryptocurrency in the world and for the first time, we’re starting to see more governments and in turn, companies, open to the idea of allowing Bitcoin as a valid method of payment for the mainstream market. With a proven track record of remaining safe and secure, it’s no wonder why governments are considering the use of Bitcoin as an alternative to outdated, risky currencies that have seen multiple collapses. Japan has recently announced that Bitcoin will now be an accepted currency which now has experts predicting a huge surge in people buying Bitcoin in Asia.
For a market that did not exist just 10 years ago, its growth has been exponential with the cryptocurrency market now worth trillions of dollars. Although it has come with its pitfalls from multi-billion dollar crashes of the market to the security of its ecosystem, Bitcoin seems to be stronger than ever. There are now 5 accepted exchange platforms of Bitcoin and the biggest one went public last week called “CoinBase”, which is a huge step forward for this cryptocurrency. The next decade will undoubtedly see an increase in more users, more countries accepting it as a valid payment method and ultimately, getting that much needed global stamp of approval. If you need any more confirmation of this, just look at the likes of the Bank of England and the US Federal Reserve who have both started work to create crypto versions of their own currencies. So, is Bitcoin worth trading with? Ask all the crypto billionaires what they think!