Bitcoin’s in-progress outpouring is difficult to decode. If the world was favoring bitcoin as a currency, one could still appreciate this frenzy. But bitcoin’s user base is quite irrelevant at present. 

On March 11, 2020, bitcoin was appreciated at around $8,000. By the close of December, it had increased nearly four times to touch $29,000. And by mid-March 2021, it had additionally doubled to $60,000 levels. To appreciate this surge, let us return to the fundamentals. 

In October 2008, Satoshi Nakamoto on the loose an investigation article stated that- Bitcoin: A peer-to-peer electronic cash scheme, on the internet. This was after the letdown of Lehman Brothers, which, in turn, controlled the global financial crisis. The 2008 crisis controlled a complete breakdown of trust and elevated questions about the cultural standards of the financial firms. 

As the prevailing system of fiat currencies and funding was seen as dishonest and operated by a few, Satoshi’s vision was the formation of a new digital currency, called bitcoin, which would modify peer-to-peer payments using blockchains and cryptography. The bitcoin system was essential as it did away with the existing central bank banking system. 

Technologists may have funded this idea of creating a denationalized currency, but it has an economic basis. Economists such as Friedrich Hayek and Ludwig von Mises had written about denationalizing currency by letting banks issue their own currency, recurring to the era before central banks. The bitcoin project was more essential as the idea was to decentralize the currency creation and management to persons. 

Bitcoin had become a fact and various traders were surprised to offer their own variation of cryptocurrencies. But as the plan decided by bitcoin and cryptocurrencies are to hold the currency and practice their best payment mode soon. 

Source:

www.hindustantimes.com/opinion/will-bitcoin-follow-the-mania-panic-and-crash-trajectory-101617633496318.html