Will cryptocurrencies such as Bitcoin come back? Some experts think so.
(PLGNN) - In recent years, crypto currency has taken the world by storm. Everyone in the world wants to get their hand on these digital wealth coins, hoping that they will get lucky and their coin will blow up. In an extremely simplified sense, it's glorified gambling. And just like gambling, it has a habit of making fortunes- and breaking them.
Crypto is a digital currency in which transactions are run through a decentralized system. Crypto can be used for purchases or as an investment. Transactions are recorded and verified on a blockchain, which is a digital ledger that can not be modified that tracks records of trades. The blockchain will grow indefinitely with every new trade, never coming to an end. A 2021 Columbia University study says that each Bitcoin transaction consumes an approximate 707 kWh, not including energy used in cooling. Offsetting Bitcoin's carbon footprint would require planting 300 million new trees, according to Fortune.
Many people have removed their Bitcoin investments due to many notable figures and governments speaking against it. Bitcoin is in a particularly volatile state due to people wanting to remove their investments due to environmental ramifications, and the potential to lose it all due to it not being insured by the FDIC. However, with the recent spike of teenagers being interested in business, many teens have been investing small amounts into Bitcoin. According to Forbes Bitcoin has lost 65% of it's market value in the entire last year. Experts are hopeful for 2024, because they predict that Bitcoin will hit its halving event, which happens every four years where BTC rewards to miners are cut in half, which helps contract supply. Recently, large investors, also known as "Bitcoin Whales" have started buying a lot of Bitcoin once again. The Chief Strategy Officer at the Gemini Crypto Exchange, Marshall Beard believes that Bitcoin may even break its all time high this year
2022-2023 has been proven to be unpredictable, especially with things like the fall of Sam Bankman-Fried's FTX Global crypto exchange. It's entirely possible that Bitcoin may rise once again, but it's also possible Bitcoin may take quite the tumble. So, if you're planning on investing in Bitcoin this year, do it at your own risk.