October 4, 2017
You may have heard of the terms “bitcoin” and “ethereum” at least once or twice in the past few months. These are what people know as cryptocurrency, or at least, two of the more popular digital currencies that seem to be gaining a lot of popularity these days. These cryptocurrencies are used for a lot of things by people who have them online, and the main reason why so many people are jumping on the Bitcoin and Ethereum bandwagon is due to the rise in the value of these virtual currencies in terms of real money.
Let us take Bitcoin, for example. This cryptocurrency started at zero value when it was first introduced, and rose to a $31.00 value 2-1/2 years. This price dropped to $2.00 in 6 months and back up again to $13.00 in a year. The first time someone used this virtual currency to get actual goods was in May of 2010 when someone traded 10,000 of his mined Bitcoins for two pizzas. This just showed how this online currency’s value was very unstable and was not considered that valuable in its early years.
Fast forward to 2017. Here you find Bitcoin prices rising and hitting an all-time high of $5,000 in early September. While it did drop to $2,900 before the second week of that same month, it rebounded and had a value of $5,600 by October of the same year. The rise in value of the Bitcoin from nothing to thousands of dollars per coin in a little under 10 years captured the attention of many people, even those who do not understand the logic behind these cryptocurrencies.
The question some people hesitant to get on this bandwagon ask is, why are people investing in Bitcoin and Ethereum, and why are these along with other virtual currencies gaining steady popularity? Why are people interested in something that they don’t truly understand? Why are people investing in digital currency?
Different people have different reasons for investing in Bitcoin, Ethereum, and other similar cryptocurrencies. Some do so because they believe that there is a future for this currency and it is a good thing to get in on it ahead of everyone else. Others do so because of what is termed as FOMO or fear of missing out. Still a few more invest in it simply because they got roped into doing so by friends and family who have already cashed in on the sudden increase in the value of these virtual coins. Most people however started noticing these virtual coins only when these began to have a value that could make anyone with a few thousand of these instantly rich.
Will the popularity of these cryptocurrencies last or will they fizzle out? Only time can actually tell but a lot of people are confident that these digital currencies are here to stay and are going to be used for more transactions online and in the real world. Some establishments have even started accepting bitcoin payments for what they are offering, and these range from coffee to food to real estate properties to services.