Earlier this week, Bitcoin scaled new heights to touch a fresh all-time high of $20,696. It has taken Bitcoin 11 years to reach this major milestone. In late 2017 Bitcoin attempted to cross the $20,000 landmark, however, it spectacularly collapsed from the mid-$19,000 to $3,400 within a year.
The rise and fall and rise of Bitcoin
This year alone the cryptocurrency has managed to grow by almost 200% after falling by almost 80% from its 2017 peaks. This highlights the volatile nature of the cryptocurrency. Due to the lack of common usage and acceptance of Bitcoin and other cryptocurrencies, it is very hard to peg a value to one unit of the cryptocurrency and this leads to wild swings in the prices.
The $207 million pizza
May 10, 2010, now famously known as the Bitcoin Pizza Day witnessed Laszlo Hanyezc pay 10000 Bitcoins (approx. $207 million) for two Papa John’s Pizza to a British man. However, Laszlo does not regret this transaction despite the meteoric rise of Bitcoin’s price. He feels that at the time Bitcoin had no value and it was pretty cool to buy pizza using Bitcoins.
Bitcoin’s mainstream adoption
Recently many traditional banking houses have begun to adopt cryptocurrencies and have started offering related services. Payment giant Paypal was one of the early adopters of cryptos and now the banks seem to be wanting a share of this growing pie.
Bitcoin has not been the only cryptocurrency to have seen such an astronomical rise in prices. Other cryptos such as Ethereum and Litecoin have risen by 350% and 200% respectively, since the start of this year. However, it has not been a smooth ride for the cryptos, with most of them following a yoyo growth pattern.
Cryptocurrencies have definitely managed to multiply the wealth of several investors in a short period of time. During this period there have been several controversies regarding their status as a currency. However, cryptos are now slowly gaining traction in the financial world. Cryptocurrencies definitely offer rates of returns previously unheard of, it however is not for the faint-hearted.