Bitcoin isn’t just the trend in online casinos in 2021, the cryptocurrency is actually becoming one of the most valuable assets for investors this year. Therefore, let’s check out on Casinoble why bitcoin is becoming so valuable and what’s happening to cryptocurrency.
The narrative on bitcoin is cyclical, and given its extreme volatility, it is normal: when it plummets from highs its detractors talk about the most popular cryptocurrency “having no future and being dead”.
On the other hand, when it approaches or achieves new price records, its apologists start talking about it going up 10x, 100x, or a thousand times more.
What’s Happening with Bitcoin?
That bitcoin is a monetary experiment with less than 12 years of experience, of which nobody knows if it will manage to consolidate itself as a globally accepted system for electronic commerce. That, let us not forget, was the purpose of its creation, which, however, will not be achieved as long as its high volatility continues to make it unfeasible for the establishment of prices convertible into currency at a more or less stable exchange rate.
Perhaps someday bitcoin will reach such stability, but in the meantime, the fact is that amateur and professional investors will continue to use it as an ideal instrument for trading that allows achieving large profits (and losses) quickly.
The Emotion of the Hype
In short, one should not be guided by emotional extremes but by the supply and demand fundamentals of bitcoin, which are increasingly strong and, as in other instruments, mark its major long-term trend.
For example, last October Square Inc made a massive purchase of $50 million in bitcoins. It did this because it considered “that cryptocurrency is an instrument of economic empowerment and provides a way to participate in a global monetary system, which aligns with the company’s purpose.”
Square is a U.S. company specializing in financial services, mobile payments, and small business services, headquartered in San Francisco, California. It has been listed as a public company on the New York Stock Exchange since November 2015, but the highlight is that it is a large global technology corporation that incorporates bitcoin into its balance sheet.
But in addition to Square, new companies have been joining the adoption of bitcoin this year, such as the also electronic payments giant, PayPal, which announced in late October that its users could buy bitcoin and other cryptocurrencies such as ETH, Bitcoin Cash, and Litecoin.
COVID-19 & Bitcoin
Likewise, with the arrival of the Covid-19 pandemic, phenomena have arisen that, on the one hand, have favored both commerce and the use of the different existing forms of electronic money.
The confinement, the “healthy distance”, the habit of avoiding direct contact between people, including the handling of cash, is driving more and more people to use digital commerce and payment methods.
On the other hand, the economic slowdown that has precipitated the worst global crisis and recession in a century has prompted governments and central banks around the world to launch an “atomic bomb” of fiscal and monetary stimuli that will cause the inflation of new financial bubbles.
In short, avoid making the mistake of discrediting bitcoin. Cryptocurrencies are here to stay. And with their increasing adoption by major players and retail investors, their upward trend will continue to strengthen their prices to unpredictable levels.