Another Bitcoin bull, recently told Yahoo Finance that “Everyone should put 2% to 3% of their net worth in Bitcoin.” The

Author : 6eren.yilmaz.3971
Publish Date : 2021-01-07 08:38:20


Another Bitcoin bull, recently told Yahoo Finance that “Everyone should put 2% to 3% of their net worth in Bitcoin.” The

Early into its life, Bitcoin had no real monetary value, says Mark Grabowski, an associate professor at Adelphi University who teaches a course on Bitcoin and author of “Cryptocurrencies: A Primer on Digital Money.” Bitcoin miners (who for simplicity just imagine prospectors mining for gold) would trade Bitcoin back and forth just for fun.

It would take more than a year for the first economic transaction to take place, when a Florida man negotiated to have two Papa John’s pizzas, valued at $25, delivered for 10,000 bitcoins on May 22, 2010. “That transaction essentially established the initial real-world price or value of bitcoin at 4 bitcoins per penny,” Grabowski says.

Crypto investor Anthony Pompliano told CNBC that demand for the coin was rapidly outpacing supply, especially after its “halving” in May, when the number of Bitcoins awarded to miners was cut in half. This process occurs roughly every four years and serves to limit the supply of Bitcoin coming into the market.

Today, that same transaction “would have a value of $114 million,” says Peter C. Earle, economist and research fellow at the American Institute for Economic Research. In honor of this pivotal moment, cryptocurrency fans and supporters call May 22 Pizza Day.

The Bitcoin creators said fuck that. They created a decentralized, digital currency with no banks involved at all. Being decentralized means there is no single administrator but rather a public ledger of transactions that anyone can store on their computer, says Kris Marszalek, CEO of Crypto.com.

“I don’t think it’s that crazy to see a $100,000 Bitcoin price by the end of 2021,” Pompliano said. “And if we continue to get bigger and bigger buyers … if this kind of tips over and all of the sudden it becomes kind of a consensus trade, it wouldn’t surprise me to see something even higher than $100,000.”

And the biggest caveat for Bitcoin is that the inflation rate is set in stone by code. It cannot be changed. The US dollar is the antithesis of this, especially when the government can print money like mad and devalue our currency.

Bitcoin is in that stage where most people are confused whenever you mention it. Within our lifetime that isn’t going to be the case. The question will steer from: “What is Bitcoin?” to “Where were you when you decided not to invest?” Especially with how uncertain the US dollar is, smart investors will start to put their money in more reliable places, like Bitcoin.

It’s hard to see where the value is heading for Bitcoin, as only 21 million Bitcoins will ever be produced. Today, however, some investors think it could be valued at $100,000 by the end of 2021.

In February 2011, Bitcoin’s price crossed the $1 threshold. “For its first few years as it grew, its price was under $2,” Bitcoin bull Kris Marszalek tells money.usnews.com. “In June 2011, it hit its first bubble, rocketing to around $31 before sinking back down to the single-digit range.”

Bitcoin was created at the depth of the 2008 Financial Crisis, where big American Banks were bailed out by the government for their reckless financial spending. Essentially, the banks ruined our economy, and were given a free pass. They weren’t even slapped on the wrist for their stupidity.

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