Bitcoin has Invaded the Cryptocurrency World
Bitcoin got introduced in 2009. Since then, the cryptocurrency world has grown significantly. Still, more and more new currencies are entering the scene. Often, cryptocurrency gets represented as a mainstream part of the payments system. However, primarily it gets used for speculation and investment purposes.
Economists warn about risks associated with the Bitcoin price fluctuations. For instance, in 2017, it reached a high of about $20,000. Yet, over the next three months, it fell for less than $7,000. By March this year, it reached $60,000. Moreover, its total market value is now above $1 trillion.
What Fueled the Growth of Bitcoin?
In 2020, most of Bitcoin’s gain got fueled by institutional and large investors. On the contrary, early on, investment got driven by retail investors. Some institutional investors point to the role of stronger regulations and continued development.
Also, they preach the application and adoption of block technology. This represents a structure that stores transactional records. The reason being, it contributes to Bitcoin’s price growth.
Security is the main concern when it comes to digital currencies. Yet, over the years, that hasn’t been the case. Nevertheless, there has been a recent surge in Bitcoin. It got explained by the increasing number of firms adopting the currency. Last year, PayPal announced that their users would trade Bitcoin via their PayPal accounts. Likewise, Mastercard announced that it would start accepting particular crypto as payment.
Following that, the credibility of Bitcoin got increased. Still, there are more notorious developments that led to Bitcoin’s surge. For example, Elon Musk’s Tesla buying of $1.5 billion worth of Bitcoins. In addition, Elon Musk announced that he would accept digital currency in the future.
Moreover, BlackRock is looking into investing in Bitcoin derivatives.
Impact of Covid-19 in the Cryptocurrency World
The pandemic encouraged people to move into alternative investments. This is an attempt to offset losses from falling share prices in stock markets. Further, there is better accessibility to cryptocurrency markets.
Still, cryptocurrencies remain volatile. For this reason, their prices can fall as sharply as they rise. As a result, in the UK, traders got warned that they should get prepared to lose all their money. Now, there are concerns that cryptocurrencies are subject to market manipulation. Others say that hacks and illegal activities could undermine confidence in their value.
Cryptocurrency and Dark Web Marketplaces
Cryptocurrency transactions get used in dark markets since they are anonymous. For instance, thanks to Bitcoin, the Silk Road Market became a major market. So then, when the market got shut down, the FBI seized over $1 billion worth of Bitcoin. Since then, critics pointed out the illegal use of Bitcoin on the dark web. This was an argument against the push for mainstream adoption.
However, Bitcoins still get used in black markets. People fail to understand that it is easy to track blockchain payment systems. Only that unique protocols are in place to cloak transaction details. Even so, the pseudonymity of Bitcoin has come in handy in police investigations.
So, next time you make a purchase in the darknet using Bitcoin, think again. In addition, use Tor Browser when visiting darknet marketplaces. It routes internet traffic anonymously.
In conclusion, as crypto markets evolve, their future is still uncertain.
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