Source: Pixabay
Since its conception in 2008, bitcoin has grown immensely and, recently, it has surpassed the $5,000 mark. Like any innovation, there were a lot of skeptics in the beginning. The concept itself was quite revolutionary – it’s a currency that is not regulated by any central bank or government. But, despite the odds, bitcoin has now proven to be a worthwhile investment.
Unprecedented Peaks
During the latter part of 2013, the value of bitcoin surged from around $100 to $1,000. Four years later, an even higher jump is witnessed by very happy investors, with the value of bitcoin soaring to more than $5,000. A Fortune article cites that, if you bought $5 worth of bitcoin seven years ago, you will be $4.4 million richer today.
Bitcoin and the US Housing Financial Crisis
Back in 2008, the bitcoin technology was conceived during a time of extreme uncertainty. It was during that year that the United States went through a housing financial crisis. There was a lot of tension among banks and their counter parties, which tried to fight deflation by printing money. Bitcoin was not connected to any bank, was not being printed, had a fixed supply, and can be instantly sent anywhere all over the globe. It was an opportune time to shine.
Historically, when there is war or political uncertainty, investors are driven to seek safe havens in precious metals and bitcoin was deemed as digital gold. Not long after, bitcoin’s value began soaring and spreading in countries all throughout the world.
Bitcoin and the Financial Crisis in Cyprus
Despite market upheavals, bitcoin has shown immense resilience. During the early part of 2013, there was a financial crisis in Cyprus, and bitcoin’s value spiked by almost 700%. Later on within the same year, the bitcoin’s value went higher as the deliberation on debt ceiling re-emerged along with fears of government shutdown. The market price of bitcoin seems to be getting higher every time there is a crisis. And while there is no guarantee, investors keep buying bitcoin during these times.
Source: Pixabay
Bitcoin and Greece’s Debt Crisis
In 2015, banks were closing down and there was a potential exit from the euro because of the financial crisis in Greece. Greeks rushed to online trading platforms to see if the bitcoin was doing better than the euro. Consequently, the locals sought security from the digital currency and, according to an article on CNN Money, trades in this country surged to 79% from their 10-week average on Bitstamp, the third largest bitcoin exchange in the world.
Bitcoin and Online Gaming
Bictoin has become so trusted that the currency is accepted at major online gaming companies such as Steam, Valve and Microsft . In the iGaming sector, some providers even only accept the cryptocurrency and offer promotions and active offers to new customers who want to try out live dealer games named after Satoshi or slot machines such as Greedy Goblins or Fruit Zen.
Just less than a decade since its inception, the bitcoin has given investors from different countries all over the world a means of financial security during severe crisis. The value of the bitcoin seems to soar higher each time a major event happens regardless of the location. Something the we all would be interested to watch out for.