By Ryan Velez
We’ve recently written several articles about the cryptocurrency Bitcoin, mainly focusing on what exactly gives it its value as well as how it can fluctuate, as well as the profits that said fluctuation can mean for those who choose to invest in it. As Celebrity Net Worth reports, now is proving to be the best time for bitcoin holders yet, as another record has been broken. According to the CoinDesk Bitcoin Price Index, on June 6th, the value of a single Bitcoin surpassed $2,900, hitting a peak of $2,933.
If this doesn’t seem as monumental to you as one may think, there’s a reason for that. For one, the previous record, $2,791.69, only sprouted up on May 25th. The first week of June proved to be a boon time for bitcoin. The month started with it valued at only $2,330.23, with it taking only six days to hit the peak number. As of right now, things have receded a bit, with the value being slightly over $2,800. However, the price is constantly fluctuating, making it hard to pin down what the final result will be when things settle.
Some analysts predict that Bitcoin may very well hit the $3,000 barrier by the end of this year, and in fact, it may have already done so if not for outside influences. In one widely publicized example, Mark Cuban took to Twitter to call Bitcoin and its present pricing trend a “bubble.” Bitcoin actually saw a decrease in its market value following his comments. While it’s easy to see why Cuban and many other people in business are skeptical of bitcoin, those who bought in early are certainly rejoicing to see their investment pay off in such a way. However, there is one small hiccup. What if this bubble talk is correct?
In addition, while those who hopped on early may be relishing their good fortune, the current price fluctuation of Bitcoin gives little reason for people on the outside looking in to try their luck. Considering that part of bitcoin’s original intention was to give different groups access to it, it’s a bit ironic that this current value may serve as a barrier to entry. We once wrote about the possibility for bitcoin to be a source of black wealth, but would many black people be willing to take such a risk on a product that is by nature, shifting in value? Only time will tell.