In fifth grade, I was riding in the back of my friend’s Honda Civic listening to Taylor Swift blasting on the radio. Her dad was blabbing about our grades and his day at work while my friend and I were giggling in the back, letting his words pass through one ear and out the other. He suddenly started talking about something that we had never heard before. Something that grabbed our attention. Bitcoin. “I recently invested in Bitcoins,” he said. “Watch, in a few years it’s going to be the next big thing.”
Five years later, I am no longer friends with that girl, BUT Bitcoins truly did take off. One Bitcoin, a form of virtual currency, was worth £3,600 as of March 2020, but quickly jumped to £27,000 in about one year. This crypto currency can be utilized to buy products and services online, and can also be sent to other people through a digital wallet. Each transaction that is made is recorded on blockchain. The three ways to obtain Bitcoins are buying them with physical cash, selling items for Bitcoin, or creating them with a computer through a process called mining.
My fifth-grade self was confused as to how my friend’s father knew this company would take off. My present day self has done some research and found out that there are several reasons why people invest in it. For one, people love the fact that Bitcoins have no affiliation with the government or with banks. This means that every transaction remains anonymous and cannot be tracked unless you yourself reveal the account number. Additionally, Bitcoins are secure. It is nearly impossible for someone to copy Bitcoins.
Though Bitcoins seem to be the new trend, there are some risks that could prevent it from reaching the next level. Many companies still refuse to accept Bitcoins as a form of payment due to its unpredictability. The pricing is volatile since the value can change at any moment and cause a loss for investors. Additionally, even though Bitcoins cannot be copied, they can be stolen or lost from your digital wallet. Despite these risks, some companies have opened up to Bitcoins. For example, Goldman Sachs reopened its crypto trade desk and Citi predicts that Bitcoin will be the future of international trade. Large companies are investing in Bitcoin due to its potential, but security and volatility are still large factors that could prevent this cryptocurrency from reaching mainstream acceptance.
I like the way you begun your piece!