Does digital money have a future?

The first virtual currency, Bitcoin, appeared in 2009. Back then, no one imagined this form of electronic money would gain such popularity.

This currency allowed for complete anonymity for its owner while eliminating some of the drawbacks inherent in other electronic currencies.

After Bitcoin's popularity began to grow, its value began to rise, and hundreds of other digital currencies began to emerge in parallel.

Cryptocurrency trading has become increasingly popular.

Until 2018, many thought this form of payment was the future, with the price of one Bitcoin reaching $19,000 before plummeting.

This dashed the hopes of investors who believed in predictions that the first digital currency could reach the $100,000 mark.

Following Bitcoin, prices for other virtual currencies collapsed, many of which became several times cheaper.

This event removed this asset from the list of attractive investments and called into question the very existence of cryptocurrencies.

Many skeptics, including Warren Buffett, began to claim that electronic money is nothing more than a bubble and that after it bursts, the price will fall to practically zero.

How true are such claims, and do Bitcoin and other cryptocurrencies have a future?

To answer this question, we need to understand the purposes for which cryptocurrency is currently used:

• Illegal transactions – bribery, concealment of income, that is, anything where you want large transactions to remain in the shadows.

Bitcoin is more convenient to use for large transactions, when transferring huge sums of cash is physically difficult, and a billion dollars fits on one flash drive.

• Universal payment system – Bitcoin has gradually supplanted electronic payment systems in settlements between freelancers.

Having replaced payments in systems such as WebMoney, Yandex money and PayPal, additional advantages have become anonymity and the ability to avoid paying taxes.

• Speculative transactions – cryptocurrencies have simply enormous volatility , which allows you to make money on them even without using leverage.

Due to the intensifying fight against offshore companies and frequent account blocking, more and more people are looking for alternative ways to hide their income. A significant number of transactions are carried out for speculative purposes, which only increases the liquidity of this market segment.

Therefore, it's safe to say that Bitcoin and other cryptocurrencies definitely have a future.

At the same time, Bitcoin and its analogs have practically ceased to be used as an investment , and price instability discourages long-term investors. Therefore, one shouldn't expect the price to rise above $10,000.