When Bitcoin was first introduced to the world in the cold, wintry month of January of 2009, about ten thousand coins were used to purchase one large pizza, which was delivered to the first person to receive a transaction of the cryptocurrency.
Bitcoin was worth virtually nothing at that point in time. However, those ten thousand coins would be worth roughly $160,000,000 – that’s calculated by Thursday, December 8th’s Bitcoin price peak of roughly 16,000 United States Dollars – if that individual had saved those bitcoins, he’d likely be able to retire, never being forced to work again.
However, such is life.
Bitcoin Is On A Rapid Ascent
About eighteen months ago – no longer than twenty-two months in the past – one Bitcoin was worth a minimum of $500. Five hundred United States Dollars is a lot of value for something you can’t hold, feel, physically detect, or even spend on a majority of products and services in the current marketplace of things. Despite this fact, we humans can’t seem to cease purchasing Bitcoin.
What’s Behind The Recent Riveting Rise?
Anyone who keeps up with financial markets, or at least watches MSNBC and similar news channels devoted to covering market-related news, has seen just how much Bitcoin has been mentioned.
With tens, if not hundreds of mentions per day on these channels – and just like anything else – is highly likely to cause increases in perceived value.
Further, several big-name financial services firms have begun to adopt the cryptocurrency, like JP Morgan. Just a few months ago, the lead executive of the firm had shared he’d fire any employee that invested clients’ money in the cryptocurrency.
However, that same executive – nothing more than just a few months after that inflammatory, headline-grabbing statement – is now a proponent of Bitcoin. Go figure!
Further, hedge funds and financial institutions are readily becoming interested in adding Bitcoin to their portfolios, greatly boosting perceived value.
Speculative Bubbles Are Strange
Nearly two decades ago, the dot-com bubble burst violently, causing loads of investors to lose millions, if not billions of dollars. Although it’s unlikely to pop — take my word on this — Bitcoin’s protective speculative bubble could burst at any moment, causing investors to lose boatloads of money.
However, speculative bubbles also have the reverse effect of causing price rallies from increases in perceived value.