[ad_1]
At the time of writing, Bitcoin was approaching a new high of $ 20,000 per dollar. What has changed since the last time this maximum was reached?
Covid Crazy
The situation at Covid19 has changed the way people do things. Technology has put itself at the forefront of everyday life. Things that used to be physically done are being introduced to the virtual world: schooling, eating in restaurants, entertainment, work, and the purchase of many goods and services. The natural fit for this type of agenda is the use of cryptocurrencies. Because? They are an extension of the technologically driven world. They can also be used to compete with the existing financial system at a potentially lower cost.
Acceptance
The last time Bitcoin hit a record high, many institutions demonized cryptocurrencies as payment methods used by criminals for terrorism, money laundering and illicit drug sales. Right now, Mastercard and Visa are linking cryptocurrencies to their credit cards and Paypal agrees to have Bitcoin used on their platform. Many governments talk about issuing cryptocurrency versions of their traditional currencies. There was also a Facebook push associated with major banks and other institutions to issue a cryptocurrency called Libra that didn’t go very far, but the intention is there. Cryptocurrencies are no longer for criminals, unless the aforementioned institutions commit crimes.
Adoption
The key to any technology is mass or widespread adoption. The more people use something, the more demand there will be for its use and the more important it will be. With widespread adoption, systems that work in conjunction with the product are also beginning to change. Take Apple’s iPod, Microsoft Windows, ISPs, and electric cars as examples. With the new demand will come new industries and tyrannical products that would not be very useful without the adoption of the original product.
Vulnerability of traditional investments
Due to the Covid scenario and the developing depression, investing in stocks and bonds is becoming quite expensive and carries a higher risk, as the underlying economy is disconnected from the performance of these markets. . The high level of debt makes real estate investing riskier than in the past, as well as the volatility of rental income and the ability of people to pay their mortgages. Cash is a safe haven, but rising inflation and debt prospects mean cash is also at risk. The concept of diversification means that these investments must be maintained to some extent, but now there is a longing for an asset that complements these products. This new asset is cryptocurrencies. This product diversifies excessive debt, currency degradation and high inflation.
[ad_2]