Paul's Comments: The Extreme Growth of Bitcoin

There is no doubt that several rulings by the U.S. Securities and Exchange Commission (SEC) and the UK Financial Conduct Authority (FCA) over recent months have contributed favourably to the price of Bitcoin.

But away from the technical developments, there is a simpler explanation for the recent Bitcoin boon.

Pauls believes the surge in price was somewhat inevitable, given the cyclical nature of cryptocurrency and society's increasing dependence on it.

"The recent growth spur of cryptocurrency, which has taken over the world once again, shows that in times when everything goes digital, secure, and not traceable, cryptocurrency will be a huge player in today's world."

With a new high of $69,000 hit in March, some investors are excitedly speculating about the possibility of a $100,000 landmark over the coming months or years.

Social media has become integral to our daily lives, with millions of people using various platforms to connect and share information. However, social media is not just limited to personal interactions; it also plays a significant role in shaping public opinions and influencing markets.

Cryptocurrencies are no exception to this rule.

In recent years, we have seen how specific public figures' tweets or statements have significantly impacted the value of cryptocurrencies. For example, Tesla CEO Elon Musk's tweets about Bitcoin have caused its price to fluctuate multiple times.

It's a facet of the practice that worries Pauls.

"The only thing that scares me is that because of the uncertainty of the crypto world, there is always a possibility of a crash. Cryptos are publicly traded, and people might "pump and dump," or a single person or company might impact the value so much that it creates unstable circumstances."

One key difference between Bitcoin and many other cryptocurrencies is their underlying fundamentals. While Bitcoin was created with the clear purpose of being a decentralized digital currency, many other cryptocurrencies were created for different purposes or as jokes—see Dogecoin, for example.

It's this level of pettiness and market immaturity that concerns Pauls and other investors.

Pauls explains: "The idea that someone can influence a whole currency by a single tweet or affect the value of it does show the instability of the crypto market."

There is also genuine concern around Pump and Dump schemes, as Pauls points out above.

Pump and dump schemes involve artificially inflating the price of a particular cryptocurrency through coordinated buying. This creates a false impression of high demand, which attracts more investors to buy into the currency. Once the price peaks, the scammers behind the scheme sell their holdings at a profit, causing the price to plummet.

There are still several hurdles for cryptocurrencies to manage before they can be accepted and globally integrated.

One central area for improvement is the need for regulatory frameworks and guidelines for cryptocurrencies - the lack thereof has led to concerns about their legitimacy and stability. Governments and financial institutions have also expressed skepticism and hesitation toward accepting cryptocurrencies, citing their volatile nature and potential for illegal activities.

However, Pauls is convinced that crypto is here to stay.

"At the end of the day, many countries are discussing and playing with the idea of crypto as part of their currency. In the coming years, Bitcoin will become a global payment method and be recognised, similar to how credit cards became normal today.

The recent rise of Bitcoin has been unprecedented, and the rapid growth has caught the attention of both investors and the general public.

While exciting, it's important to practice responsible investing. Where possible, spread your investments and not put all your bags in one basket.

Beginning his career as a freelance broadcaster with Goexanio, Spakovskis made his name as a desk host, commentator and team manager in the Baltic Esports League (BESL) and has been heavily involved in the Optibet Latvian League 2021 and various Redbull eSports events, including Valorant Camp Clutch 2023 and League of Legends 2023.