At the time of writing, Bitcoin approached a new high of USD $ 20,000 per Bitcoin. What has changed since last time this height was achieved?
Covid19 situation has changed the way people do many things. Technology has been driven to the front lines of everyday life. The things that were used physically are now pushed into the virtual world – school, eating in restaurants, entertainment, work and purchasing many items and services. Natural fit for this kind of agenda using Cryptocurrency. Why? They are an extension of a technology that is driven in technology. They can also be used for competition with the financial system that exist at potentially lower costs.
The last time Bitcoin reached a record high, many institutions spit out cryptocurrency as a payment method used by criminals for terrorism, money laundering and forbidden drug sales. At this time, MasterCard and Visa connect the Cryptocurrency to their credit card, and PayPal now accepts Bitcoin which will be used on the platform. Many governments talk about issuing the Cryptocurrency version of their traditional currency. There are also encouragement from Facebook who partnered with large banks and other institutions to issue cryptocurrency called Libra which did not run very far but the intention was there. Cryptocurrency is not for criminals anymore unless the institutions commit a crime.
The key to each technology is widespread adoption or bulk. The more people use something, the more requests exist for their use and the more important it will happen. With widespread adoption, the system that works along with products has also begun to change. Look at Apple iPod, Microsoft Windows, Internet providers, and electric cars for example. With new demand there will come new industries and piggy back products that are not too useful without the adoption of original products.
Traditional investment vulnerability
Because of the ongoing Covid and depression scenario, investment in stock and bonds is quite expensive and bring a higher risk because the underlying economy is cut off from the performance of these markets. High debt levels make real estate investment risky than in the past and volatility of lease income and the ability of the community to pay for their mortgage. Cash is a safe place but the prospect of the increase in debt and inflation means that cash also has a risk. The diversification concept means that this investment must be held to a certain extent, but now there is a longing for assets that complement these products. This new asset is Cryptocurrency. This product makes it possible to diversify from excessive debt, debasemen currency, and high inflation.