Since its first launch in January of 2009, bitcoin has grown so dramatically to redefined the financial space. Bitcoin laid the first foundation for the cryptocurrency world and since then has been the leader in the space. Cryptocurrencies have now reached a market cap of over 560 billion U.S. dollars. Out of this, bitcoin is responsible for about 350 billion.
The Rise of Bitcoin
Bitcoin started picking up steam in early 2012. After reaching 20 dollars at the beginning of 2013, the cryptocurrency peaked at about 266. By in 2016 bitcoin started to skyrocket. By 2017 it nearly reached 20,000 U.S. dollars before quickly crashing back down to 9,000. Since then bitcoin has been a roller coaster having both its bullish and bearish moments.
Despite its tremendous growth, cryptocurrencies have not been accepted by everyone. Different government and financial institutions have openly shown their distrust to cryptocurrencies. This is because of the lack of control the government has over such a type of currency. Despite that, bitcoins success forced many governments around the world to embrace bitcoin. This means regulating it and monitoring it to a similar extent to fiat currencies. Many countries have now placed strict KYC and AML regulations on cryptocurrencies. This along with blockchain tracking makes it near impossible for criminals to launder bitcoins.
Once again bitcoin has started to skyrocket. Bitcoin went as high as 19,300 U.S. dollars nearly breaking its old record. Some analysts predict that this is the beginning of the big bull run that many have been predicting for years. Many expect bitcoin to be worth over 100,000 U.S. dollars in the next couple of years. This is a very possible case scenario but for now bitcoin is not expected to go that high.
PayPal has had a long history with bitcoin. The payment service can be held responsible for putting bitcoin on the map back in 2010. People used PayPal to sell bitcoins for USD but the company was quick to prevent such transactions. About 10 years later, PayPal is embracing bitcoin.
Many hold PayPal responsible for the new boom bitcoin is experiencing. The payment platform now supports bitcoin transactions in the United States. This is great news for cryptocurrency enthusiasts as their goal is to embrace bitcoin as a traditional currency.
Another reason bitcoin has skyrocketed is square. The American payment platform has invested over 50 million in bitcoin, acquiring over 4,700 coins. Square has been embracing cryptocurrencies for many years. Bitcoins have been accepted on the platform as early as 2014. Both PayPal and square are not heavily invested into bitcoin. This does not only scream good news for cryptocurrency enthusiasts but for both companies too. Square has made over 1.63 billion in revenue from its cash app not counting its recent investments.
The Future of Bitcoin
For many, the future of bitcoin is very uncertain. Some big analysts claim that bitcoin will skyrocket to over 100 thousand USD. On the other hand, some claim that this is another bubble that is expected to crash. While it is very likely that at some point in the future bitcoin will have a massive bull run, it is unclear when it will happen. For now, bitcoin is likely to stabilize at around 20,000 USD.
It is unclear what the future holds for bitcoin although it looks good for now. The future of the cryptocurrency really depends on the way it is embraced by different entities. For the cryptocurrency revolution to happen governments need to implement good regulations. This will make it easier for companies to work with cryptocurrencies like bitcoin. While this is not the case, bitcoin will not have a chance to compete with fiat currencies.
Bitcoin has now been around for over 10 years. Since its first appearance on 'bitcoin.org' in 2009 a lot has changed. The cryptocurrency first gained a bad reputation from criminals. Now thanks to blockchain tracking, KYC and AML regulations the cryptocurrency is not that easy to launder. This made the currency more appealing to companies and less to criminals. Now that payment platforms like PayPal and Square embrace the cryptocurrency a positive effect can be seen. It is unclear what the future holds for bitcoin but it heavily depends on the way its embraced.