Love it or loathe it, Bitcoin isn’t going anywhere. Who would spend £1 of Bitcoin on a loaf when it could be worth anywhere between 20p and £5 in a year’s time? This argument doesn’t make sense given its volatility. Others dangerously suggest that their followers should take out loans to purchase Bitcoin, something that could lead to financial ruin in an unregulated market where consumers have zero protection if things go wrong.Ī Bitcoin enthusiast told me he is adamant that it will render traditional currencies obsolete – and this cryptocurrency will be used to buy bread and pay rent one day. Twitter is awash with crypto pundits – often anonymous – who confidently declare a single Bitcoin will be worth millions of dollars in the future. Subscribe to the Daily podcast on Apple Podcasts, Google Podcasts, Spotify, Spreaker If this pattern repeats itself once again, Bitcoin will plummet in 2022 – decimating the investments of those who attempted to jump on the bandwagon when prices were high. Come 2018 and it shed 80% of its value, tumbling below $4,000 at one point. Over the course of the year, its price rallied from $800 to $20,000. In 2013, Bitcoin surged from $100 to then unprecedented highs of $1,150 – only to fall by 73% to lows of $310 in 2014.įast forward to 2017, and a similar pattern emerged. Over its 12 years in existence, a regular pattern of four-year cycles has formed – propelling Bitcoin to record prices before a sharp decline. A Bloomberg Intelligence analyst also told me that this price is now “the path of least resistance” in the short term.īut increasing regulatory scrutiny and a precarious global economy mean that this is far from guaranteed.īitcoin neared $67,000 on Wednesday – that’s the highest price ever recorded The British financial institution Standard Chartered has predicted that Bitcoin could hit $100,000 (£72,000) in early 2022.
Inevitably, the other question is whether Bitcoin’s price could rise further. And given how migrant workers attempting to send money back home to their loved ones currently face high fees when using cash, it’s also hoped that Bitcoin could lower these costs dramatically. The cryptocurrency can now be used as a payment method across the country – including in Starbucks, McDonald’s and Pizza Hut. Several countries in Latin America are keeping a close eye on El Salvador, which has taken the bold step of embracing Bitcoin as legal tender. The likes of McDonald’s now accept Bitcoin for burgers – but only in El SalvadorĪt the same time, we’re starting to see how this cryptocurrency could potentially be used in daily life.
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