Bitcoin’s record-breaking rally catapulted it to a $1 trillion market capitalization.
This has added to the crypto frenzy. Investors, analysts, and the public are now discussing whether these are worthy investments.
Despite discussions surrounding the legitimacy of crypto assets, a new study discloses that 50% of Americans view cryptocurrencies as safe investments. Out of those surveyed, 41% were of the opinion that investing in cryptocurrency was just as risky as investing in stocks.
The study was conducted by a global consumer research platform, Piplsay, that surveyed more than 30,000 people regarding their views on digital currencies.
The crypto bull market is now grabbing the attention of those who previously didn’t consider cryptocurrency to be an alternative asset. This was observed by the Chief Executive Officer of Wirex, Pavel Matveev.
According to the survey, 57% of Americans believe that the leading companies should start accepting payments in cryptocurrencies.
Some companies have already jumped on the bandwagon and made announcements with respect to crypto in recent times. Amongst these companies who have shown a keen interest in crypto are PayPal, Mastercard, Visa, Tesla, JP Morgan, and Morgan Stanley.
PayPal announced that it would start allowing users to use cryptocurrency on its platform. Similarly, Mastercard revealed that it would facilitate crypto transactions, while Visa announced that it would assist banks to roll out crypto assets.
Tesla declared that it would start accepting crypto as a means of payment for its products. It also revealed its investment of $1.5 billion in the asset.
Some of the investment banks like Morgan Stanley and JP Morgan have also expressed a willingness to consider cryptocurrency as payment.
However, critics of cryptocurrency argue that the instability of the asset makes it a poor medium of exchange.
Bitcoin has soared recently, escalating 60% this month itself. Ethereum, which is currently the second-largest cryptocurrency by market value, also saw an all-time high this week. Even the joke crypto, dogecoin has gained considerable popularity in recent weeks.
According to Adam Liposky, Bitcoin’s $1 trillion market capitalization displays the mainstreaming of cryptocurrency as an asset that will maintain its value. Lipovsky is the Ecosystem Operations Lead at Pocket Network. He also added that Bitcoin is only the first of many $1 trillion market caps that will be seen in the blockchain economy.
Devotees argue that Bitcoin may exist exclusively as a form of value similar to digital gold. While other types of digital currencies will materialize as forms of payment.
Michael Venuto, co-founder of Toroso Investment remarked on the exchange value of the Bitcoin. He stated his doubts about buying a cup of coffee with Bitcoin. He added that emphasis seemed to be on the store of value argument from the restricted supply.