The price of Bitcoin recently fell by over $2000, giving critics more ammo in to shoot at the reputation of the apex cryptocurrency. Despite the recent wave of headlines spelling doom and gloom, there is a lot of evidence that shows that the cryptocurrency’s price will bounce back.
The apex cryptocurrency continues to outperform traditional assets with a return on investment that very few companies listed on stock markets would dare to promise their investors. From a value of under $1 since 13 years ago to over $18,000, Bitcoin has shown that it ignoring it would be at the peril of investors.
Institutional investors are publicly betting on Bitcoin. They see it as a great hedge against inflation and a means of relatively quick returns. Reports by some of the world’s largest finance firms show that it is more resilient than gold and similar assets which have typically been perceived as sustainable.
According to the CEO of Sino Global Capital,
“In the crypto and blockchain ecosystems it is important to be able to ‘cut through the noise..We are long term bullish on Bitcoin and we continue to see the industry professionalize and mature as an asset class.”
Some countries around the world have a need for Bitcoin which has more value than their fiat. Nations like Argentina and Venezuela for example, have experienced disproportionately higher levels of inflation than other nations, thereby reducing the purchasing power of households. For many households in these nations, cryptocurrency serves as a way to save, transfer money, and keep hope alive for their financial futures. Even organizations in the nations are accepting it as a form of payment for goods and services. Pizza Hut recently chose to accept the cryptocurrency as a form of payment in Venezuela, setting the precedent for more large-scale restaurants to accept the king crypto in the nation.
Photo by Viktor Forgacs on Unsplash
