When you look at the history of bitcoin, its mind-blowing. What started as a little project is
now worth over a trillion dollars. I remember when I heard about bitcoin for the first time in 2013,
it only existed on the dark web. Only real enthusiasts actually used it.
Back then, it used to be worth pennies. It started 2013, with just 13.40. I know that looking at the
bitcoin price today, it’s really difficult to believe that it used to cost around 10 bucks,
but that was the reality back then. Those were the days where you could mine
bitcoin from your home and not in giant factories filled with computers. In fact, that's how most of
the bitcoins were mined back in the day. That’s impossible today because the network has grown
so much that you need a huge computer warehouse to make that possible. But 2013 was a decisive year
for bitcoin. It experienced its first mini bubble, where the price spiked to over 220 dollars.
But it was not mentioned in the media as its today. You could find that in bitcoin forums,
where crypto enthusiasts exchanged ideas and opinions about the future of crypto. To be honest,
most enthusiasts back then couldn't imagine bitcoin crossing a trillion-dollar valuation.
But here we are. Bitcoin is everywhere.
2021 can be officially named the year of bitcoin because, for the last 12 months,
the price has been rising faster than ever. We can criticize the pandemic as much as we want,
but if it wasn't for the pandemic, this crypto boom wouldn't probably happen. Just to remind you
that prior to the pandemic, the price was floating around 7K dollars. It's hard to believe that,
but that was the case. In fact, in December 2018, it reached its rock boom of 3400 dollars.
I think we can envy the people who actually bought it back then. Imagine for a moment the
returns they have made. But you can’t go back in time and feel bad that you haven't invested in
bitcoin back then. However, what we want to find out is why bitcoin hasn’t crashed yet.
I mean for many people bitcoin or everything that’s happening with crypto recently is a bubble.
And there are some good reasons why people believe so. We have talked about some of them in the
previous video, but we also talked about that it might not be a bubble and why crypto has a future.
Especially when you come across news such as this. The president of El Salvador is planning
to build a bitcoin city and use crypto to fund it. That’s probably one of the wildest ideas
that I have come across this year. What started as a small project is now turning into a city where
everything in that city, starting from roads, restaurants, schools, will be funded with crypto.
It sounds like a Utopia that crypto enthusiasts dream about. But to do that,
the government has to raise money, and it wants to do it by selling bitcoin bonds. It sounds like
a great plan to help the country finally get out of the economic crisis that the country has been
going through for several years now. According to the official statements,
the construction could begin as soon as 2022. Regardless of how much the country
is struggling economically, it still makes the headlines and pushes people to believe
further in the future of bitcoin. When a country sees its future through building a bitcoin city,
you know that bitcoin isn’t going anywhere anytime soon. But that's not the only factor
that's keeping the bitcoin price around 50K. Tim Cook, the CEO of the most valuable company,
said that he actually holds crypto, he didn't specifically mention bitcoin, but if you are
investing in crypto, then bitcoin is literally your first choice. He didn’t say anything about
apple starting accepting crypto, but if the CEO is so exposed to crypto then the company is
seriously looking into it, so it's just a matter of time because Apple gets into the game as well.
Take a look at amazon, The company has posted a job ad for a new 'Head of Digital Currency and
Blockchain' to join its Payment Acceptance and Customer Experience, team. Amazon seems to have
been working on its move to get into crypto. The moment world’s largest companies get into the game
or rather invest in crypto, it’s over! There is no going back!
What surprised me the most is what the CEO of JP Morgan said, Jamie Dimon is literally
the face of wall street and if he admits that bitcoin price is going to grow even though he
thinks that bitcoin price is worthless, then its clear that the status quo is accepting crypto.
https://finance.yahoo.com/news/despite-jamie-dimon-blasting-bitcoin-213300567.html
What's also important to understand
is the adoption of virtual and artificial reality. Wait for a second, how is that related to crypto?
Since the invention of the internet, we have been building this virtual world. First it consisted
of sending emails, then it moved to where we shop online, attend meetings through zoom,
and even compete internationally with e-sports. The next stage in this virtual world is Metaverse,
where we are going to have a virtual world where everything is possible.
We are already living in this VR world partly. I know that it sounds too futuristic for some
of you, but we have been heading into this direction for over 20 years now, and the
pandemic pushed the world to move to it even faster to the point where one of the biggest
internet giants renamed itself to Meta. If you have seen Zuck's presentation,
you know what to expect. We are not that far from that reality. In fact,
most experts predict that Apple's next big thing is going to be a VR product. I am not sure how it
is going to look, but definitely something related to VR. But in this virtual world,
we should have a system to own things, that’s where for example, NFTs come into the picture,
and they are based on Ethereum, for example, and crypto is the de facto money of the virtual world.
Andrey Jikh has an amazing video on the Metaverse. He has done a fantastic job explaining
how it could potentially look like, I will leave a link to his video in the description.
But not everything is sunshine and rainbows. First of all, the last week or so,
or at least when I am wiring this script, crypto is going down. It has already declined by about
15 percent. I am not sure how much more it will decline by the time this video is up
on the channel, but hopefully it will recover. A lot of people have been waiting for a crypto
crash since the beginning of the pandemic. Although that i believe in crypto as well, there
are some good arguments why things could crash to a certain extend. one reason we know that crypto
rose so dramatically is because of cheap money. If you have watched our video on how the
economy works, you know that there are periods of recession and booms, and for the past year or so,
we have been in that boom period, and it seems like it will last for at least one more year. It’s
difficult to make such predictions since the world is unpredictable, but during such periods, there
is just too much money in the economy, and crashes almost never happen, especially when it comes to
bitcoin where it has a huge dedicated network. When this period is going to be over, and its
not going to be over in a glimpse of an eye. Just to let you know that the last economic expansion
lasted for over 10 years. When the economy crashed in 2008, the economic expansion lasted until 2020.
of course, if you take a look at the data, the slow down started back in 2016, but nonetheless,
it somehow stabilized at around that stage. So to expect any kind of crash in the coming future
is unreal. That doesn’t just apply to bitcoin but overall to the whole economy.
As the fed raises interest rates, the supply of cash will keep diminishing in the economy,
which means that people on average will have less money ready to spend, which will also
impact the demand for crypto and bitcoin. It’s impossible to predict how much of an impact it's
going to have on crypto, but it will definitely influence the price. All you have to do is pay
attention to interest rates because they are key factors that will influence the economy—Thats
what all investors do. But even if it does, it won't entirely crash prices because if major
corporations are adopting crypto, then it’s just going to be a fundamental part of our economy.
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