The famous cryptocurrency, bitcoin, recently topped $10,000. It seems like the cryptocurrency kingdom is getting crazier every week. Whenever it touches an all-time high, people start debating why it happened, when it will fall, what the forecast looks like, and so on. It’s incredible to see how deeply invested people are in cryptocurrencies and all the benefits they have to offer. Click this image below to start bitcoin trading.
However, one must be fully aware of the trends and graphs of cryptos to make better decisions and understand how it works. If money goes whenever, you buy cryptos, if there’s a warning you have gotten and need to take care of, if your investments need to be placed more sensibly, and so on. In the world of cryptocurrency, people don’t trust anyone, either. They don’t buy other words but listen to them for learning purposes. Every person is fighting their own battle, and every one of them also needs to win.
While cryptos have been hitting the peak this season, Zoltan Ban had also given such a warning before. He referred to bitcoin as a black hole that is expanding exponentially in terms of financial, economic, and global aspects. Many people indeed acknowledged this theory. It explained the exponential rise of bitcoins and how they are expanding the market capitalization rate, which will be a significant cause of concern in cryptocurrency world.
According to Zoltan, if nobody takes action to prevent the current appreciation rate, the market capitalization rate of bitcoin will reach around $1.3 trillion next year. This is not a sum of money that’s globally significant and has immense value, which is why it will also be treated the same way. This means the effect will be primarily felt worldwide and bitcoin will keep increasing to grow in the upcoming months. The growth of bitcoin is sure to worry governments and countries.
So… Where does the Crypto Money Go?
We understood the rise of bitcoin and the theory of Zoltan that made a lot of sense to millennials. However, where that money goes is also of due concern that people must know. Most bitcoin transactions are similar to other financial transactions we make. When a seller and buyer settle on one price, it’s time to trade that product over an exchange.
Suppose that a $40k investor purchases bitcoins and hands over a cash deposit of $40k to the seller for his earnings. Now, it is up to the seller if he would like to keep that money in the bank or purchase other cryptos. The seller also has the choice to withdraw the amount and then spend it however he wishes.
In case Ifded to invest in cryptocurrencies again, the trading process almost the same. If he finally agrees, he must undergo the same process and make the same decisions again. If the seller withdraws the amount again at some point, he will get this amount as cash too.
Is it Okay to Pay with Bitcoin?
The primary purpose of bitcoin creation was that it should be used just like people use money. It’s like a P2P (peer-to-peer) electronic cash system. However, the price fluctuations and volatile nature of bitcoins make this practice quite unrealistic. This price volatility has also left a black mark on the importance and reputation of bitcoins.
A learn editor, Ollie Leech, shared how no one would find it okay to pay for their coffee with bitcoin. It’s like they pay $3 for whatever coffee they want, and it turns out the bitcoin was worth $30 the next day. Any person who rationally thinks and understands how cryptos or bitcoin, in general, works would never buy this system or use it. Why? It’s a total loss for them.
Conclusion
In short, people don’t buy bitcoins because they want to purchase whatever they want at the store or spend it however they like. People are interested in bitcoins because they want to hold the coins’ value. The director of data, Galen Moore, also thinks the same.