With the price of bitcoin rising by over 600% this year alone, the coin has attracted a large amount of attention from all over the market. With the coin also dropping in the double-digit percentages several times throughout the year, it continues to intrigue investors.
Although bitcoin is not new, the idea that lies behind it is something that is only recently gaining traction. What can a fully digital and decentralized currency look like as time goes on, and can the world fully adopt a new economic method?
If you were one of the lucky people who bought bitcoin at the beginning of this year, regret may have come within the first three weeks as it quickly dropped by around 20%. After this point, most investors would’ve thought that the market was crashing, but those who stuck around were rewarded for their confidence in the currency. The year-to-date performance is around 663% at the time this article was written, and analysts continue to assume it will rise.
One of the main issues with the currency however is the high amount of volatility combined with the idea that the market is mostly driven by speculation. This is where a large amount of uncertainty comes in. From regular investors to Wall Street hedge funds, bitcoin can seem like a very risky investment given its performance. Those who invest in growth are mildly unsure as the high volatility can go both ways, while those who wish to grow their savings cannot fully trust in such a new and moving system.
The volatility of the currency continues to be the main idea why bitcoin cannot be fully adopted by Wall Street and the likes of large investors. Hopefully, as time goes on the market will calm down, and bitcoin can grow to its full potential throughout the world economy.