With the recent financial meltdown and crisis that has hit the world, once again, Bitcoin seems to be coming up to play the role of saviour. Is it really the safe haven people think? We dig into the current opinions and facts from our most trusted sources.
At its birth, bitcoin was worth a modest price of $0.003. Today, one coin is estimated at £7,539.18. With such colossal growth comes huge volatility, Bitcoin has seen its fair share of highs and lows, and most recently experienced a 20% drop overnight. While its value is now very uncertain, so are current events. With an unprecedented period like the one we find ourselves in today, there lies great potential in Bitcoin as a new solution, if not as a speculative investment vehicle.
Bitcoin: The new safe haven
The ethos and benefit of Bitcoin
Bitcoin has some potholes preventing it from becoming a reliable store of value. Global regulation of cryptocurrency is still finding its way through the chaos. With minimal universal laws and rules on how trades can be executed, there is an opportunity for market manipulation, which can lead to questioning how honest some cryptocurrency price changes are.
A big part of Bitcoin’s promise is: "To help the world's population be better prepared for unforeseen global economic crises" - such as the current market crash from COVID-19. Bitcoin's borderless ethos will need regulation, and this progress starts at government level. Correct regulations of blockchain and cryptocurrencies, The everyday individual can be more in control of their finances, it will see a rise in peer-to-peer lending instead of loans from banks creating more accessible and affordable credit. Due to its current lack of regulation there is also a lack of trust. With lack of trust comes lower adoption rates, and in turn, this means there is a smaller market. With correct regulation, experienced investors will come to see significant gains, which will in turn see mass adoption of products. Investor confidence and trust will then naturally follow.
Bitcoin: The need for education
Controlled laws and regulation is only half the struggle. With all things Bitcoin, there’s also the total lack of education and knowledge for the wider audience. We are now ten years into the currency revolution, and only a small percentage of the population understand what Bitcoin is and its relation to cryptocurrency.
When the average consumer understands and has a firm grasp on the industry, then adoption of the system will face less friction. We must remember that, for those in the know, its a fascinating and opportunistic time. However, the general public has little understanding of how to gain access to a digital wallet or mine for coins.
Again the crypto industry faces another roadblock: Not only do people not understand Bitcoin, but they do not know how to spend it. This creates a lack of engagement in digital currencies.
The solution?
Engagement with crypt currency will require more people to understand and feel comfortable using cryptocurrencies. Every individual in the industry is responsible for educating and helping as many as possible to understand the benefits and reasons as to why cryptocurrency will help them. This is true for regulators also and how they can best manage the role of digital currency on the world stage.
Engagement with crypt currency will require more people to understand and feel comfortable using cryptocurrencies. Every individual in the industry is responsible for educating and helping as many as possible to understand the benefits and reasons as to why cryptocurrency will help them. This is true for regulators also and how they can best manage the role of digital currency on the world stage.
When Bitcoin and Cryptocurrency is understood and accepted by the majority of the population, we will then have a true safe haven. One that obliterates our fear of the economic impact of pandemics and otherworldly disasters.
Seeing the future of what is to come and what will be has always been a gift we wish we were born with. As time drags slowly forward, we can learn from even the last few years that Bitcoin, albeit a volatile beast is one that's here to stay and should be talked about more often. If you are new to the crypto world and like many are dazed and confused by what it is, what it's worth and how to start. Call us, and we can help you on your journey.
