Bitcoin has reached a value over $16,000. Wow.
Bitcoin's price today officially reached over $16,000. And it seems like bitcoin is just going up and up. With no sell signal currently in sight, what does this mean for the future of bitcoin?
Volatility of Bitcoin
With such high prices and growth comes high fluctuations. Changing literal thousands of dollars in a matter of mere minutes may seem scary for the currency, but such fluctuation may prove to be a good sign. By beginning to fluctuate, we can see bitcoin starting to adhere to the rules of business cycle and of buying and selling, beginning to resemble something like a stock. With this one can hopefully speculate that more stability can be brought to bitcoin and it can gain more legitimacy as a currency.
Crash and Burn?
All of this seemingly unstoppable growth makes one person think "won't the currency crash because of this?" And if it were a stock, that would be true. However, bitcoin is unique in its identity of a cryptocurrency, meaning that is can grow and grow as there is no total finite amount. Furthermore, with the spread of bitcoin's usage around the world and even in the United States, the future of bitcoin is looking very good (however it is debatable whether it can stay as such a high level or will there be slight decline of it as it normalizes from its current inflation).