We’ve all heard the “If you bought Bitcoin 10 years ago, you would be a millionaire.” Bitcoin is the perfect demonstration of the rapid rise of cryptocurrency and the increasing role it plays in today’s society. In 2010, a Bitcoin was worth $0.0008. Now one of the hottest commodities on the market, Bitcoin is currently priced at upwards of $40,000. That’s more than an 8.9 million percent growth in the span of a little over 10 years.
It is also important to note the volatility of Bitcoin and cryptocurrencies as a whole. Prices of cryptocurrencies fluctuate much more severely than traditional assets and stocks — largely because cryptocurrency is mainly fueled by hype and future potential.
From a surface level, this makes some sense. The entire concept of cryptocurrency is futuristic and revolutionary — the idea of a currency separated from government and regional conflicts/issues, coupled with increased accessibility to those around the world, seems utopian if executed properly. It would additionally solve many of the problems with today’s currencies and unify different regions through the usage of a singular currency. The growth in usage and popularity of cryptocurrencies such as Bitcoin and Ethereum is largely based around the potential they have — the potential to make transactions more efficient and secure, avoid corruption and other regional/governmental issues, and employ a currency accessible by all (or at least more than the status quo).
The cryptocurrency industry is currently valued at $1.6 billion and is expected to grow to $2.2 billion by 2026, with a compound annual growth rate (CAGR) of 7.1%. Considering the hype and potential that backs the cryptocurrency market, in addition to increased acceptance of cryptocurrency at different mediums and channels — including chains such as Starbucks and Whole Foods, this rapid growth rate seems feasible.
The market has shown that hype and craze can rapidly fuel growth (cough cough, Gamestop). Cryptocurrency’s stake in our future depends on public acceptance, and that acceptance seems to be growing. The unrivaled growth of cryptocurrency doesn’t seem to be ending soon, so sit back and enjoy the rollercoaster growth of Bitcoin and its peer cryptocurrencies.
This article was written by Aditya Jain at DevTrex. DevTrex is an international student organization empowering the next generation of entrepreneurs. To learn more about DevTrex, check out our website at https://www.devtrex.com/.
Disclaimer: Information provided by DevTrex, a nonprofit organization, should only be considered for informational purposes.