The year 2017 has been off to a great start for Bitcoin and cryptocurrency enthusiasts all over the world. With the price per BTC surpassing the US$1,000 mark for the first time in years, there is a lot of optimism among community members. Compared to about a year ago, the price has gone up by nearly 250%.
The Bitcoin Price Surpasses US$1,000
It has to be said; the Bitcoin price has been undervalued for a very long time. Ever since its decline in value after 2013, there has been some concern over the long-term viability of this currency. To be more precise, the mainstream media have drafted several Bitcoin obituaries, declaring the currency dead and useless. But innovation has a way of working itself out, resulting in a very bullish Bitcoin price trend over the past few months.
With record trading volumes across major global exchanges, it is evident the Fear of Missing Out is setting in. Although it is obvious the vast majority of trading is done by investors, people are slowly becoming aware of how Bitcoin could be worth looking into. That does not mean the average person on the street will start buying whole Bitcoins all of a sudden, nor should they.
The bigger question is how long this bullish Bitcoin trend will continue. While there is cause for great optimism, as well as more warning signs for traditional finance, these are still the early days of decentralization. A lot of people continue to struggle with the concept of not being able to touch Bitcoin physically, yet still being in full control of the value it represents.
Bitcoin adoption is often compared to how consumers and enterprises first looked at the Internet. Many people believed that was just a flavor of the month project that would never amount to much. But it is due to the growing presence of the Internet that new decentralized currencies such as Bitcoin can exist. Despite consumers and enterprises getting more accustomed to using the internet, there remain some trust issues when it comes to digital finance.
From an investment point of view, there is a likely chance the value per Bitcoin will continue to increase over time. However, that will not happen overnight and may take many months, or even years, before coming to fruition. Bitcoin is a currency first and foremost, rather than an investment vehicle. Up until now, investors have used Bitcoin as a way to diversify their portfolio, without using the currency for spending purposes.
2017 Can very well become a defining year for Bitcoin and other cryptocurrencies. It is still very early to tell, even though we are off to a very promising start. Now would be a good time to start looking into the whole Bitcoin concept, and determine whether or not it is something one should buy a small quantity of. But keep in mind Bitcoin is about more than just being an asset. Thousands of retailers accept Bitcoin as a payment method, and the cryptocurrency business directory continues to grow every month.
Header image courtesy of Shutterstock