It’s getting harder and harder to doubt bitcoin. Yes, the currency remains rather volatile and vulnerable to outside market factors. Yes, the route towards establishing bitcoin as a payment currency has been rather rough, but the fact is that BTC has come quite a way since it was first established over ten years ago. The currency has been on a serious bull run for roughly one year, and analysts can’t see this run coming to an end anytime soon.
Bitcoin Has Come a Long Way
It is estimated that bitcoin, the world’s number one digital currency by market cap, has added roughly 1,150 percent to its overall value since March of 2020. At that time, the currency – like many financial markets – was experiencing major hurdles given that the coronavirus pandemic was beginning to strike the global economy like an anvil, and at one point, the asset fell below the $4,000 mark when it had been trading (briefly) for over $10,000 the month before.
However, now the asset is trading for well over $44,000, meaning the currency has gained 11 times its initial value since March. It’s been 11 months since then, which means that on average, bitcoin has added close to $4,000 to its price each month. That’s massive growth for a currency that’s only about a decade old.
While bitcoin is being viewed through a positive lens by most analysts, there are still doubters out there that are convinced bitcoin is going to fail its fans. One of those doubters – Marc Chandler, the chief market strategist at Bannockburn Global Forex – claimed in a recent interview:
The fact that it draws some institutional investors or even some companies in doesn’t change [anything]. Bitcoin has no earnings stream that can be modeled. It has no break-up or replacement cost. There is no intrinsic value. It has no use value the way economists understand it.
Other industry experts – such as Ipek Ozkardeskaya, a senior analyst at Swiss Quote Bank – said that until the volatility behind bitcoin is controlled, it can never complete all it was meant to achieve:
Unless the price of bitcoin stabilizes, either bitcoin’s price falls drastically and you end up having won a Tesla in a lottery, or its price triples and you end up paying your Tesla far too expensive.
Some Are Doubtful, Others Hopeful
Still, many others believes that figures such as Elon Musk are making the right move by investing so much in bitcoin and believe that the digital asset is the future of finance. Jehan Chu – founder and managing partner of blockchain firm Kenetic – issued a statement mentioning:
Right now, it still seems like a bit of a leisurely pursuit to acquire bitcoin, but I think by the end of the year, with the current rate of institutional flow inbound, it will become clear that this is a once-in-a-lifetime landgrab.