In fact, the experiences of the last couple of years confirms that nothing will hinder the rise of bitcoin. It is probable that bitcoin will increase in the coming years. And it seems like the beginning of a long process that will affect our lives in the coming years. Even the new generation could turn Bitcoin into the currency of the future.
Until a few centuries ago, along with the rise of paper money is a parallel had risen in credit and including debit cards. Investors were about to move into big business and use their techniques not just to create model citizens but model consumers. For hundreds of years before paper money, mankind used swap system to actually buy something.
To fix this, they had used the seashells. Afterwards they have used coin, banknote, paper money, electronic money, credit and payment cards just as timely. Transfer of money was insufficient for promoting growth and productivity because it was not extensive enough.
Nowadays, with blockchain based, mobility, informalism, secure and transparent, alternative currencies, we are discussing the final part of the evolution of money. Satoshi Nakamoto published an article on Bitcoin. After the article’s publication the bitcoin which emerged in 2009, its value was 0,07 dollars when put on the market in 2010 and closed the year 2013 with 960 dollars.
The Rise and Fall of Bitcoin
In 2017, the price of bitcoin increased only by 185% within one month, it reached about 20 thousand dollars. And it resulted in a rapid decline and it has fallen to 6 thousand dollars. With the opening of future transactions, the big investors focused on the decline of the prices. They earned much higher returns on the spot and future markets.
In 2018, although it’s said that the decline of the prices with 5,800 dollars, it’s still 600% more valuable than previous years. It gives a positive result about the advances for the future. World leaders discussed the cryptocurrencies in the G20 meeting for the first time. The media is constantly discussing information about the growth of the value of the cryptocurrency.
As a result of discussions between the top levels institutions, from these results it was concluded that the cryptocurrencies doesn’t pose any risk for the financial system. In addition, another topic that is currently high on the agenda is exchange traded fund for the cryptocurrencies.
Exchange traded fund and investors will be able to buy and sell basket of cryptocurrencies is created by the stock exchanges without the need to buy cryptocurrencies. In other words, much less transactions and less bureaucracy. The genuinely positive approaches of governments, advantage of financial instruments like exchange traded fund, these investors will focus on the cryptocurrencies, clearly and confidently.
Cryptocurrency Markets Are Not Yet Large Enough
Size of the capital market, in other words, the value of the market is estimated at $80 trillion all over the world. Cryptocurrency market capitalizations, or the value of the cryptocurrency worth about $300 billion. True, sounds like a drop in the ocean. However, we should also not forget other altcoins.
Parallel to the development of Blockchain technology, companies, fin-tech initiatives and start-ups, they are entering the altcoin market as manufacturers. Nonetheless, every manufacturer are trying to develop their own ecosystem. After all of that, they contributes to the development of the cryptocurrency market in a focused manner. There are many altcoin that will be integrated with the real economy anytime soon.
With the contributions of governments, after the regulation of the cryptocurrencies, this will help build confidence. And investment funds can invest in shares. In daily life, the cryptocurrency will be preferred. If you think that you can buy everything with paper money on the Mars colony, its status will be no different from seashells today. So the evolution of money cannot be stopped.