Are Cryptocurrencies A Viable Investment Or Bubble?

In 2008, an unknown individual or group who went by the pseudonym Satoshi Nakamoto created a cryptocurrency given as a reward to those who can complete online tasks in a process known as mining.

For years, this currency remained seemingly worthless and flew under the radar, until late 2017 — when it made some people billionaires, and others lose their savings.

Of course, this currency is bitcoin, which is now back in the picture for many investors given its recent explosion driven by large investors.

On Sunday, BTC hit a new record high of over $24,000, which leaves many investors wondering if this could be a repeat of the bitcoin bubble in 2017.

For an explanation of exactly how bitcoin is traded and the risks associated with it, check out this Tuesday video from The Wall Street Journal.

The bulls of BTC say that it could become a replacement for gold under the condition that the market cap of bitcoin grows to meet that of gold, which would require an enormous uptick in BTC price in 2021.

The bears of BTC are focused on the risk associated with trading BTC, as many investors are skeptical if its volatility creates too large a risk for it to be considered an asset. 

In other crypto news, showing how volatile cryptocurrencies can be, Elon Musk singlehandedly raised the price of his favorite crypto, Dogecoin over 40% in the last week by merely tweeting about it and changing his twitter bio to “former CEO of Dogecoin."