A lot of things had to happen all at the same time to make Bitcoin finally smash through the psychological $20,000 mark. Everybody remembers how 2017 was the year of Bitcoin and at the time thought they had seen its high point. After the crash in early 2018, it seemed like the bubble had burst for good.
With a raging global pandemic, an out of control political season in the US, Brexit just weeks away from going “no deal” and so many other factors, Bitcoin finally broke past a number many thought would never happen.
What does this mean for the future of cryptocurrency, though? Will it crash as it did almost three years ago? Or, is there something even greater in store for crypto?
In this article, we will go over what the future of Bitcoin might look like in the near future.
Paypal says it will enter the Bitcoin game
It seems that breaking this threshold has made it more mainstream to use Bitcoin. Because of this, Paypal has decided that they will be a broker to facilitate buying and selling Bitcoin. This is sure to make a lot more people get involved with Bitcoin because they can buy bitcoin now with many different means.
This is a signal to those that know nothing about blockchain and less about what to do with it that there is a trusted and easy way to start using it. So, the likelihood of Bitcoin crashing out is much lower now than when it last crashed.
People simply didn’t know what they could do with Bitcoin when they were buying it in 2017 but they knew enough to buy and then sell it which caused the crash. With more people using it like a regular currency will make it stable.
With Paypal being the exchange, it will make lots of retailers eager to accept Bitcoin which will increase its usefulness even further.
It’s a safe haven
After the crash a few years ago, people wrote Bitcoin off as being too volatile. The fact that it has surpassed its high from those heady days indicates that it is likely to be far less volatile than it used to be.
This means that investors are using Bitcoin more and more lately to park their money during turbulent economic times to avoid losing their investments. It has proven itself to be immune to many of the stock market fluctuations and can help people keep their profits while they wait for the stock market to become stable again.
The danger of Bitcoin volatility still remains
While things look good for the long term for Bitcoin since it could be on the verge of mass adoption, there is still a possibility of a crash. Bubbles happen in just about every market and cryptocurrency is certainly not immune to that at all.
Nobody has claimed that it would be. The whole point of the currency is to decentralize it and put it in the hands of the people to decide what happens to it. People are sick of the tactics that big banks use and governments that keep printing money which devalues the currency. Bitcoin is a finite resource so it at least doesn’t inflate.
*This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.