Bitcoin is considered the original cryptocurrency by many investors. When it entered into circulation in 2009 through the pseudonymous programmer Satoshi Nakamoto, it launched the crypto craze. The following years saw the famous crypto going through peaks and troughs, particularly in late 2017, when it captured the imagination of those seeking alternative investments, hitting two peaks of nearly US$20,000 in December and January the following year. It soon came crashing back down, giving market-watchers a first glimpse at its dramatic volatility.
Throughout the wild ride, bitcoin opened up the debate of whether cryptos would be adopted as regular currency or if they were just another collectible asset class, like gold. In 2020, companies like Tesla began accepting bitcoin as a form of payment (and even purchased $1.5 billion in bitcoin). This decision would be reversed only two months later. And now more financial services like Goldman Sachs Group Inc. and Morgan Stanley are finding ways to offer bitcoin funds to clients.
However, one of its limitations is that its supply is capped to 21 million coins that can be mined in total, benefitting its value as an asset but potentially limiting its capacity as a currency.
Late last year, bitcoin began its rip-roaring ascent to record-breaking highs, nearly reaching US$65,000 in April. This drew warnings from skeptics like economist David Rosenberg that the cryptocurrency is merely a bubble. But for the bitcoin believers in social media circles, the run cemented its place as a wealth asset.