The value of Bitcoin went beyond expectation in late 2017, reaching a whopping $20,000 for each coin. An astounding increase in price from $800 at the start of 2017.
Because of this, some people say that it’s the modern-day Tulipmania. But despite it being one of the most surprising things to have happened in the financial world, there’s no denying that Bitcoin’s rise was inevitable.
One or two reasons did not cause this rise. Instead, it’s the outcome of our current lifestyle, technology, and globalized world. Read on to learn about how this global phenomenon swooped the globe and encouraged millions to invest and engage.
Global Financial Crisis of 2008
The 2008 financial meltdown was one of the most disastrous moments of the global economy since the Wall Street Crash of 1929. Never before have there been so many people affected by a single economic downturn, with some reports saying that it affected more than a billion of the world’s population.
The result was investors losing confidence and interest in mainstream financial markets. Being an investor is all about putting your eggs in different baskets, and that’s just what they did. They spread their investments among different markets and platforms, including Bitcoin. The financial crisis of 2008 was the tipping point for people to realize that the only way to safeguard their money is to avoid mainstream markets.
Bitcoin Mining is on the Rise
In the early days of Bitcoin, everyone who had access to a computer could mine it. But everything changed two years after, as the network’s size grew exponentially. This made it impossible for everyday people to mine it using simple hardware. It then gave rise to mining cartels that thrived on multiple hi-tech systems.
Social Media is Stronger than Ever
There’s no denying that we have reached the point of being so connected with each other that we have access to almost everything happening in real-time. There are many reasons why it’s the case, with social media being one of the most influential factors. When Bitcoin made it to the headlines, people were quick to dismiss it as nothing more than just a fad.
But with the many discourses, articles, and news surrounding its continuous increase in value, it quickly became a trending topic on different social platforms. There are 2.6 billion people active in social media which helped word spread quickly. With this many people exposed to Bitcoin, it isn’t hard to see how it grew into popularity.
What does the future hold for Bitcoin?
The debate whether Bitcoin is merely a bubble waiting to burst has been brewing since it rapidly increased in value. But with what’s currently happening, it’s easy to say that Bitcoin is one of the most interesting trading commodities in the world.
It just needs to deal accordingly with government regulations so that it can be considered a mainstream currency. Whether that will happen or not, depends on how we treat and react to Bitcoin and other cryptocurrencies.