By now you are probably sick of hearing about Bitcoin. That is, unless you were one of the people who got in early and held on to your coins until now as the value has skyrocketed. Otherwise, you're probably on the rooting side hoping that the value crashes harder than the year 2000 dot-com collapse.

Originally created as an alternative to regular currency, Bitcoin allowed users to invest in what was hoped to be the replacement for the dollar. Eventually, all transactions made with dollars was supposed to be able to be done with Bitcoin.

Although the value is currently higher than ever, the original focus of the technology has been lost.

Where did things change?

Over the past several years, the rise in technology has allowed many stores and businesses to accept various forms of payment. Apple, Google, and Samsung came out with software that allowed you to pay for goods or services just by simply waving your phone instead of swiping a card. This was all about convenience as you were still paying in your normal currency, you just didn't have to pull out your wallet to make the transaction.

Bitcoin aimed to jump into this market as many leading retailers soon began accepting the cryptocurrency as a form of payment. Now, users can buy a cup of coffee or pay for movie tickets with their Bitcoin.

It seemed like things were on the right track as the growing popularity and usage indicated that Bitcoin may indeed one day be the top form of currency.

However, since the beginning of 2017, the value for Bitcoin has not stopped climbing. At that time, the value was hovering around $1,000. A marked increase since the debut and enough to make some very wealthy people if they had invested from the outset. Fast forward to the end of 2017 and the value is creeping towards $20,000!

This type of volatility has made a number of people filthy rich, but it is not without its perils. This volatility has all but crushed the original dreams of Bitcoin being akin to the dollar. No one is going to use Bitcoin to pay for a product, when the fluctuating price could mean that they greatly overpaid in the end. Furthermore, many businesses have stopped accepting Bitcoin as the wild fluctuations have become too risky to accept as payment.

The resulting perfect storm has turned Bitcoin into another commodity to be bought and sold like stocks or gold. The hope is that the value continues to rise due to the lifetime cap of only 21 million Bitcoins being available. This type of scarcity is driving the value, but where will it end?

Now that Bitcoin has pivoted from its initial use, the future for the cryptocurrency is murky at best. If the investing public loses faith at any point, expect a crash the likes of which haven't been seen since the mortgage crisis.
© ALL RIGHTS RESERVED