The epic rise that Bitcoin has experienced in the recent months has simply been unbelievable. The digital currency is now slightly above $16,000 in value. No one would have predicted this a year ago, not even the most passionate Bitcoin enthusiasts. It’s a digital precedent that has never been seen before in the financial markets.
Let’s put things into perspective just to give you a rough idea of what we are talking about. Since the beginning of 2017, Bitcoin has risen in value by nearly 1,270%. And that is not all. The cumulative value of all cryptocurrencies has risen 2,174% this year alone to hit $316 billion. On its own, Bitcoin represents 54% of total market capitalization in global markets. That’s just how valuable the cryptocurrency has become.
It’s a very interesting time for Bitcoin investors though. After all, there has never been a financial asset that has risen this fast before. Due to this lack of precedence, investors are now in a dilemma not knowing what to do next.
Should you sell your coins or you should hold and hope the exponential rise continues?
Some bullish investors are looking at Bitcoin as the most important tech innovation since the invention of the internet. Some believe that based on current trends Bitcoin is poised to become a trillion dollar industry. Others are betting on Bitcoin to replace gold and all the other monetary instruments in the world. For most Bitcoin bulls, the picture is looking promising and rosy.
But of course, there are some skeptics too. Some experts have termed the meteoric Bitcoin rise as one of the biggest financial bubbles ever, and they think that the bubble will eventually burst. Skeptics are predicting a situation where the cryptocurrency could collapse in less than a day.
Despite all these competing views, most people still don’t have any idea what cryptocurrencies are.
But what’s next for Bitcoin? Well, it’s very hard to tell. Bitcoin is a liquid asset whose foundation is firmly entrenched on technological innovation. Technology is very dynamic and liquid assets can be very volatile. Bitcoin is basically a combination of both.
Even for the most optimistic Bitcoin investors, there is a feeling that we could be in a bubble at the moment. And just like all bubbles, a correction is likely to happen. If the correction will be just a 20% correction or a complete collapse in value remains to be seen.
But let’s not take anything away from Bitcoin. Whether it falls or rises further, there is no doubt that the past year has been outstanding for the digital currency. Rising nearly 1,275% in just a year has never been seen before. This could be the beginning of something massive. It could also be the beginning of the end for Bitcoin. But no matter how you look at it, Bitcoin will remain one of the craziest stories in the financial markets for a long time to come.