At the beginning of the year, bitcoin has hit again a new high reaching the price of $40,675 and was trading at that level for few days, then it dropped down and now it’s trading at $34,808, according to data from Coinbase
Bitcoin currently has a market value of over $600billion, and the value is only going up. Several financial institutions are warming up to Bitcoin, for instance, PayPal wants to offer Bitcoin on its platform as a way of payment; JP Morgan believes that the price of bitcoin could reach $146,000 in the long term if the market cap gets higher enough.
It is not a secret now that Bitcoin in particular and Cryptocurrency in general, are getting more attention, even with its manipulated price, people are becoming more obsessed with wanting to own or invest in bitcoin or other Cryptocurrencies, it becomes a worldwide culture, so who invest in it can be seen as a millionaire. This whole scene attracts today even more attention to bitcoin and cryptocurrencies, this has become the identity of many.
We live in a world where technology especially social media plays a very big role in society, several celebrities who invested in bitcoin shared feeds in social media (Twitter, TikTok, Facebook ), has pushed the price higher. Elon Musk has changed his Twitter bio to “#bitcoin#” last week, which signaled to investors that Musk might have bought some bitcoin and this in return has driven the price up from $32,000 to 38,000$, 19 percent in less than an hour. This proves that social media plays a huge part in changing the behavior of people.
Bitcoin, in particular, is very volatile, many day traders buy or sell bitcoin to make a profit, but there are many as well that believe that bitcoin and other cryptocurrencies have no value and investing in them is just a big gamble like Berkshire Hathaway CEO and chairman Warren Buffett has been a longtime critic of bitcoin.
Then Some people like to gamble and enjoy that thrill, Bitcoin is volatile, the price change constantly during the day, that is what makes it more exciting to many, especially today young people grow up with social media and video games, and they all want to get in the cryptocurrency game. Most people only focus on the profit than the loss.
The technology behind Bitcoin has the potential to revolutionize the global financial system, and perhaps in the future, every electronic transaction in the world would be processed via blockchain. That makes it unique and gets people very excited, that is why many investors predict the price of bitcoin to go as high as $200,000 over the next few years. Add to that the success stories of the first people who bought bitcoin at the very beginning, then sold it, and become millionaires, this has made it more attractive.