When the thought of Cryptocurrency comes to mind, there is one digital currency that pops up. Undoubtedly, this is about Bitcoin. Amidst the several digital currencies available, no one is more esteemed and controversial in many quarters like Bitcoin. In this report, the exponential growths in value of this coin as well as the adverse effects are discussed.
Why the Fuss About Bitcoin?
Amid the pandemic, several sectors of the economy have suffered a great deal. However, some things have thrived regardless of the unfavorable financial situation in the entire globe. One of them is Bitcoin.
As things stand, this digital/virtual currency is worth somewhere around $50000. The dramatic thing is that this value is not static and is forecast to rise way more than this. Several financial analysts in Wall Street and Key Players in the Blockchain industry are even certain this is just the beginning of great things for investors.
Additionally, the decision of notable figures like Elon Musk and Jack Dorsey to invest heavily in this digital currency is proof that there is more to it.
The Downsides to Bitcoin
In a time when financial institutions are counting their losses and struggling to stay afloat, Bitcoin is accomplishing major feats. One of the reasons is because people understand that it has stood the test of time and can be trusted as a great way to invest and secure funds.
However, the rise of Bitcoin which is forecasted to hit well over $500000 in a decade is bad news for some industries. The greatest losers are the brick and mortar financial institutions. This is because people are beginning to see digital currency as a safer, easier, and more secure way to invest and transact money.
This is rather than deal with financial institutions and get dividends from fixed deposits and all sorts. In light of this and other things, it is feared that digital currencies like Bitcoin will change the narratives for the banking industry.
Another industry that is likely to take the hit is the gold market. This industry has been the safest alternative for people who need to invest for ages. However, Bitcoin is gradually beginning to unseat Gold in this regard.