When Jonathan Phillips had first thought about investing in Bitcoins way back in 2015, many people had warned him against the same. He recalls how all his friends and relatives had labeled Bitcoin as the greatest scam of the century.
Jonathan went against their advice and borrowed $10K from his stepfather to invest in Bitcoins. In 2020, when Bitcoin crossed the $20K mark, Jonathan’s earnings cross a million dollars! He states that he bought a new house, a sports car, and some baseball collectibles from half his earnings.
If you ever wanted a financial asset or investment opportunity, which has broken multiple world records, you would know about Bitcoins. You would also know how Bitcoin is the fastest-growing asset in the world for the last few years.
In this article, we are going to settle a debate, which has been going on for the longest time. The debate will look at two key aspects-
- Is the Bitcoin Bubble going to burst now?
- Is Bitcoin the best and safest investment option?
However, before we begin, let us discuss the history, success, and growth of Bitcoins very briefly.
Bitcoin: Success and Growth
Many people simply do not understand the philosophical underpinnings of Bitcoin as a new financial system for the world. A majority of people equate people with Gold and follow the same understanding regarding scarcity, hike in valuation and hedge.
However, Bitcoin is both a currency and a store of value. It is aimed at evolving a new financial system, which eliminates the role played by governments and regulators. In other words, it gives power and control of your money in your own hands.
The elimination of intermediaries means that you can carry out transactions and trades by paying zero commissions and currency conversion fees. In other words, you get what you ask for, without losing any value anywhere along the line.
Will the Bitcoin Bubble Burst anytime soon?
According to a smart contract, people who have been sounding the bugle are now tired of doing the same. They realize that what they have been saying for the past decade or so is not coming to fruition anytime soon.
With Wall Street Investors and National Governments also engaging and regulating Bitcoin, it would be safe to say that we are well past the bubble bursting period. Many skeptics who were apprehensive of Bitcoins pointed out that it is an ecosystem dominated by nerds and tech freaks and not open to the normal population.
However, that theory stands quashed as 2019 and 2020 saw the highest number of retail investors in Bitcoin. With the rise in credible trading platforms and exchanges, Bitcoin has truly gone mainstream in the developed and the developing world.
Should you invest in Bitcoins in 2020?
As an investment option, Bitcoin has already established itself as the newest darling of Wall Street. The past year has seen some of the biggest names in the investment banking and hedge fund sectors speak publically about the potential Bitcoin and Blockchain has for the world.
National governments and banking institutions have realized that they are late to the party and are now trying to make up for the lost time. By engaging with Bitcoins, passing regulations and appointing authorities favorable to the adoption process clearly shows how the world is embracing Bitcoins.
Bitcoin is a safe investment, which has been made more secure by checking the volatility experienced earlier. This shows that the currency has come of age and has gradually matured over a period. The fundamentals and best practices of holding on to your Bitcoin investments over the long-run has also led to its growth and valuation in different parts of the world.
The Final Word
All those who keep saying that Bitcoin is still a bubble were also the ones who announced the premature end of the dotcom buzz. They failed to realize that Google, Facebook and Amazon were just getting started. Similarly, Bitcoin is just getting started and holds infinite possibilities for the coming world.