If you have paid attention then you would know that bitcoin has been on the news for more than five years. Since its inception in 2009, the use of Bitcoin for value transactions has been a hot or rather controversial topic of debate. Now if we divide the people who are actively speaking about bitcoin we will end up with two groups of very famous people.
The first group contains people like Jamie Dimo, Warren Buffet, Prince Al Waleed and Ajay Banga who are actively speaking against the acceptance of bitcoin as a currency. In an interview then Warren Buffet was asked why he is not investing in bitcoin or cryptocurrencies in general. As an answer to this question, he put forward three reasons. He believes that neither bitcoin does not have any intrinsic value nor does it work as a currency which makes it difficult to understand and he only invests in the things that make sense to him.
The second group we have a long list of celebrities like Bill Gates, Elon Musk, Jack Dorcy, Gwyneth Paltrow, Paris Hilton, Snoop Dogg, Ashton Kutcher, Mike Tyson, Pitbull, Lionel Messi, Floyd Mayweather Jr., Madonna and Johnny Depp. All the people in the second group are either the immediate investors in bitcoin or its advocates. Warren Buffet and Bill Gates’ friendship is known to many. But here is a quote from one of Bill’s interviews that shows his contrasting viewpoint about Bitcoin.
“Bitcoin is exciting because it shows how cheap it can be,” he explained in an interview with Bloomberg from 2014. “Bitcoin is better than currency in that you don’t have to be physically in the same place and, of course, for large transactions, currency can get pretty inconvenient.”
And it is a fact that most people don’t care about these things. They only care about one thing, and that is how to become rich quickly.
In this article, we will justify why bitcoin or cryptocurrency is the future of currencies. And hopefully, by using this information you will be able to open a new door of opportunities for yourself.
My reason has got to do something with the company Tesla which is owned by Elon Musk. Now people, if you have been following Tesla’s news lately you would know that in the past year they have faced a steep decline in the demand for their electric vehicles in most European countries and China which used to be one of their biggest markets. And while this was happening Tesla’s stock price was skyrocketing which increased the net worth of Elon Musk by 140 billion dollars making him the richest man on the planet. So if you see on one side the Tesla’s stock price was increasing at a rapid pace and on the other hand, the company was facing problems to generate a profit to justify the stock price. Therefore in order to combat this problem, Tesla came up with an ingenious plan. What they did was they invested 1 billion dollars into Bitcoin in the year 2020 and announced the word that they will be accepting Bitcoin as a payment for their electric vehicles (giving signs that they want to make bitcoin mainstream).
When this news came up in the market it immediately caught the attention of the people who were supporting Bitcoin so millions of people started investing in Bitcoin and ultimately the price of Bitcoin shot up to an all-time high of 63000 dollars. And soon enough Tesla sold all its Bitcoin investment booking a profit of 1 billion dollars and they announced to the world that they will no longer be accepting Bitcoin as payment because of the environmental issues it had. So in this way, they shadow their losses in the electric vehicle industry by investing in Bitcoin and making it mainstream by accepting it as a currency.
So if you see a single company like Tesla could have an impact as big as this, then what might end up happening if a nation as big as China or USA starts accepting Bitcoin and make it mainstream. Not only this is possible but many poor countries such as Ethiopia and Venezuela where the currency is not stable have started using cryptocurrencies like bitcoin or Cardano for the exchange of value. The potential it is carrying is huge and the revolution that it can bring is even greater. To sense the opportunities that it can bring one needs to do deep-dive research in it.