Despite cryptocurrency being widely utilized by people across the globe, opinions remain divided amidst the support of big companies like PayPal, Mastercard and JPMorgan.
Its success has paved the way for PayPal to support the platform and announce the launch of its own cryptocurrency service, allowing people to buy, hold and sell digital currencies using their system. Due to this, Bitcoin’s price surged when the online payment platform entered the crypto business, and even Mastercard and JPMorgan also shared optimism regarding the cryptocurrency.
JPMorgan mentioned that bitcoin can compete with gold and be considered as an alternative currency in the future, also stating, ‘Bitcoin could compete more intensely with gold as an “alternative” currency over the coming years given that millennials will become over time a more important component of investors’ universe.’
However, due to its fast-paced technological advancement, many traders still remain wary of cryptocurrency and how it can affect future investments, especially for gold.
Bitcoin has reached more than US$15,000 in the market. This brought light to several critics questioning if the platform is a ‘digital gold’ or just a risk to many investors during this already difficult time. The peak of Bitcoin was during 2017 when it reached nearly US$20,000 and dropped instantly the following year. However, as 2020 came, its users increased and bitcoin is now moving towards a bright future.
In response to the recent increase in cryptocurrency use, President Simon Polrot of Paris-based crypto assets association ADAN mentioned that ‘it is the validation of a market which was still relatively uncertain a few years ago.’
Bitcoin was launched in 2008 under the pseudonym of Satoshi Nakamoto and remained unpopular until its growth in 2013. Now, many users and financial institutions are using the platform all over the globe. If cryptocurrency remains prevalent in the upcoming years, it will lead to more hassle-free transactions for both businesses and personal endeavours.
Additionally, PayPal stated that ‘the migration towards digital payments and digital representations of value continues to accelerate, driven by the COVID-19 pandemic and the increased interest in digital currencies from central banks and consumers.’
Even the US Federal Reserve and European Central Bank are planning to launch their own cryptocurrencies while China continues to research the efficiency of digital payments by testing it on four cities in their country.
However, since the US election extremely affected the movement of the market, sectors are now divided on their opinions over the platform. Despite ByteTree’s Charles Morris’ statement that bitcoin is a ‘very much a growth asset, behaving like a tech stock’, many users are still sceptical about this financial technology.
A London trader who wanted to remain anonymous mentioned, ‘There is no room for bitcoin in a serious forex portfolio. That would be a catastrophe for a forex trader–we use gold to balance our portfolio.’
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