Cryptocurrency is a real-world use case of blockchain technology.
Bitcoin is most probably the first-ever cryptocurrency that has been distributed among the people.
The price tag of Bitcoin drastically increased during 2017.
Again, in 2021 the world has seen a sharp rise in Bitcoin price.
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Fiat currencies often experience price depreciation
Depending on real-world happenings, fiat currencies have experienced a rise and fall in their value.
Due to a fall in business, the value of fiat currencies varies. The value rises less but falls regularly.
The government mints print more currency notes during crises.
The world rarely sees improvements in its economy. The economy always falls.
During the COVID crisis, the national mints printed more currency notes. The economy is going down and down.
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Cryptocurrencies also depend on situational crisis and hypes
The market hypes act tremendously on the price tag of cryptocurrencies.
The volatility of Bitcoin prices can't be controlled by one or a group of crypto experts/enthusiasts.
But, if a rich person owning a big business says anything about Bitcoin, the common people, who are micro investors of Bitcoin, are influenced.
For example, Elon Musk said Tesla would accept Bitcoin, and the price of the car gave a big push to the price of BItcoin. Trading of Bitcoin rises, and the price rises. Bill Gates commented that he didn't have any cryptocurrency investment gave an opposite push, and the price came down.
It is the common people who are mostly influenced by the hyped news. They often become tensed and sell Bitcoin at a lower price. Then, the richer investors can buy Bitcoins at a lower price. Thus, the richer investors hold most of the Bitcoins, and we common mass lose our hard-earned money over the hypes. There is a weak similarity with the share market.
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Will Bitcoin price always continue to rise?
I understand the technology of Bitcoin and many other cryptocurrencies.
But, I don't understand where Bitcoin will reach in the future.
I don't know when most Bitcoin mining would be carried out using renewable electrical energies, such as wind power or solar photovoltaics.
I don't know how a Bitcoin owner will only earn and don't lose their Bitcoin investment.
I also don't know if the Bitcoin price will always continue to rise.
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Predictive conclusion
The price tag of Bitcoin and other cryptocurrencies is volatile.
The investors of cryptocurrencies don't have any control over their investments.
Many national governments are trying to formulate laws to control cryptocurrencies.
The future of Bitcoin and other cryptocurrencies is not fully predictable.
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#cryptocurrency #blockchain #bitcoin #money #technology
Cheers! Debesh Choudhury
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