Bitcoin has had a tremendous start to 2021, rising above $40,000 per Bitcoin for the first time ever.
Right now, with retail investors increasingly eyeing bitcoin in light of its recent gains, new research shows how bitcoin “whales” accumulated a huge number of bitcoin tokens in December, helping the bitcoin price to never-before-seen highs.
The resilience of that digital coin and others – as well as the reasons behind it – have many excited not just about the prospects for this young asset class in 2021, but also for the general adoption of this burgeoning financial technology.
Meanwhile, bitcoin’s reputation as “digital gold” has grown in recent weeks as governments around the world flood markets with unprecedented levels of freshly printed cash – leading to a surge of big name investors naming bitcoin as a possible hedge against inflation.
This growing macro-case for bitcoin has vindicated long-time bitcoin believers which have cheered the latest price explosion.
Despite these expected “bumps,” most in the bitcoin and cryptocurrency space are predicting the bitcoin price will continue to rise over the long term.
What may actually help to make this time different, however, isn’t that Bitcoin rates hit new highs in 2020 and finished the season with a mind of steam. It’s that the cryptocurrency succeeded in its first trial by fire.
What Exactly Is Bitcoin?
For starters, a quick refresher for the uninitiated:
Bitcoin is actually a digital currency created in January 2009 following the housing market crash. It follows the ideas set out in a whitepaper by the pseudonymous and mysterious Satoshi Nakamoto.? The identity of the person or persons who produced the concept is still a mystery. Bitcoin offers the promise of lower transaction costs than traditional online payment mechanisms and is operated by a decentralized authority, unlike government-issued currencies.
It was the birth of an entirely new financial paradigm.
Bitcoin has had some rough periods after the creation of its in 2009, but analysts are no longer claiming the “death of Bitcoin.”
Bitcoin More Than Survives In 2020
Bitcoin values fell steadily after sharp rallies in 2013 and 2017, but these declines weren’t precipitated by any significant event spanning multiple asset classes. While it’s possible for the charges to fall back down once again, you will be able to find yourself being extremely wealthy from this investment if you hold out it out long enough.
So the bear market of 2020, short as it was, marked the first time Bitcoin and other digital currencies faced a truly global crisis that threatened many sorts of investments.
Those lows were short-lived, however. Digital currencies bounced hardest off the bottom, as well as Bitcoin turned positive by April.