Ethereum R1 is a new donation-funded, tokenless Layer 2 rollup designed to offer a decentralized, censorship-resistant, and governance-minimized scaling solution for Ethereum

The S&P 500 rose 0.63% Thursday, boosted by strong Meta and Microsoft earnings, but futures slipped Friday as investors awaited the April jobs report and weighed Apple and Amazon tariff concerns. Gold fell to $3,235 as easing trade tensions cut safe-haven demand; markets await US jobs data for rate cut signals. The Coindesk Indices, which tracks the broader crypto market, rose 2.19%, with Bitcoin and Ether up 2.57% and 2.60%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is AR, which gained 16.8% following CloneX's successful migration to Arweave, sponsored by ArDrive.

Arweave (AR), founded in 2017, is a decentralized network for permanent data storage, using blockweave and Proof of Access to ensure long-term accessibility. It offers 200-year storage for a one-time fee, incentivized by AR tokens for miners. The system connects blocks efficiently to preserve and retrieve data, aiming to create a lasting digital knowledge repository. CloneX has successfully 

 to Arweave for permanent storage, with the support of ArDrive, which sponsored the migration of 100 GB of data. The process is nearly complete, with only Animus remaining to undergo decentralization.

Check out the latest prices, charts, and data of 

 is a new donation-funded, tokenless Layer 2 rollup designed to offer a decentralized, censorship-resistant, and governance-minimized scaling solution for Ethereum. Built on open-source code and the Nethermind Surge stack, it emphasizes credible neutrality, public good funding (with all fees burned after 2030), and infrastructure that remains free from VC control or centralized dependencies.

Yesterday, BTC spot ETFs saw $71.1M in total inflows, with $16M from GBTC and $55.1M from other ETFs.

 $BOOP tokens to active Solana memecoin traders and creators who promote memecoins or Solana dapps on X. To claim, users must connect their Solana wallet or X account and launch a free token. The airdrop arrives in 30 days, but growing the token’s market cap can accelerate the reward.

Beginner

3.png

Ethereum R1 offers a decentralized rollup solution for Ethereum

This article dives into Bitcoin liquid staking protocol Lombard Finance, how LBTC works and how you can stake LBTC through Bybit Web3.

Bitcoin stands as the undisputed giant of the cryptocurrency space, commanding the largest market capitalization. Yet, much of its potential remains untapped, often sitting idle as a store of value rather than actively participating in the thriving 

 ecosystem. Lombard Finance aims to change this narrative by unlocking Bitcoin's utility and integrating it seamlessly into DeFi.

Lombard is built upon Babylon, the innovative Bitcoin staking protocol, and is incubated by Polychain Capital. Lombard’s flagship product, 

 (LST) for BTC. This article explores what Lombard Finance is and how LBTC works, and describes the Lombard ecosystem and how you can stake LBTC through Bybit Web3.

 is a liquid staking protocol that focuses on transforming 

's role in the digital economy. Its core mission is to evolve BTC from simply being a store of value — also viewed as 

 — into a productive asset that actively generates yield and participates within DeFi. Currently, a significant portion of Bitcoin's

 sits idle, lacking the native staking capabilities or cross-chain composability seen with assets such as 

Lombard Finance addresses this shortcoming by building on top of 

, a protocol that supports BTC staking without needing 

 or custodians. Babylon allows Bitcoin's economic weight to secure other 

 (PoS) chains and applications, creating a new yield source for holders. Lombard leverages this foundation to offer LBTC, making staked BTC liquid and usable across the DeFi market.

Lombard’s goal is ambitious: to channel Bitcoin's vast liquidity into DeFi. This could potentially double the ecosystem's 

 (TVL) if even a fraction of available BTC is introduced. Lombard believes this integration will catalyze significant growth and create more sustainable market dynamics by making BTC a core, yield-bearing primitive within DeFi.

Founders and investors of Lombard Finance

Lombard Finance was founded in April 2024 by a team with deep expertise within DeFi, drawing talent from established crypto projects like Polychain, Babylon, Argent, Coinbase and Maple. This collective experience underpins the protocol's design and strategic direction.

The project was notably incubated by Polychain Capital, a prominent crypto investment firm that also led Lombard's $16 million seed funding round (which was 

 in July 2024). This round saw participation from a wide array of significant players in the crypto space — including Babylon, dao5, Franklin Templeton, Foresight Ventures, HTX Ventures, Mirana Ventures, Mantle EcoFund, Nomad Capital, OKX Ventures and Robot Ventures — thus highlighting broad industry confidence in Lombard's vision. Strategic partnerships and contributions from exchanges like

 and Bitget are further bolstering its distribution and liquidity aggregation efforts.

LBTC is Lombard Finance's flagship product — a liquid staking token (LST) that represents Bitcoin staked through the Babylon protocol. Designed as a universal liquid BTC standard, LBTC is fully backed 1:1 by native Bitcoin, ensuring its value is directly tied to the underlying asset.

The token is yield-bearing, capturing rewards generated from securing PoS networks via Babylon staking. Crucially, LBTC remains liquid, meaning holders can freely use it across various DeFi applications — such as 

 and automated vaults — without sacrificing their underlying staked positions or associated yield.

LBTC is also designed for cross-chain compatibility, natively minted on supported blockchains like Ethereum, Base and Sui and using secure infrastructure [such as 

]. This avoids the risks associated with traditional bridging or wrapping methods, thus aiming to provide a more secure and seamless way to utilize Bitcoin across the multichain DeFi ecosystem.

Lombard Finance simplifies the process of putting Bitcoin to work within DeFi through its LBTC token. The mechanism is designed with security and user experience in mind, leveraging the Babylon protocol and a robust Security Consortium.

The core benefit of LBTC lies in its ability to unlock multiple layers of value simultaneously. Holders earn native yield from Babylon staking, potentially accrue additional rewards (such as Lombard Lux points) and gain access to diverse DeFi yield opportunities, all while maintaining the liquidity of their Bitcoin position. This transforms BTC from a static asset into a dynamic, yield-generating component of the DeFi ecosystem.

Lombard Finance is actively building a wide LBTC ecosystem that already boasts over 75 DeFi integrations. Security is foundational, anchored by the 14-member Security Consortium (including prominent names like Galaxy and OKX Ventures) and validating all critical operations alongside audits and bug bounties.

Core infrastructure relies both on Babylon for staking, and on the Chainlink CCIP for secure cross-chain movement, with EigenLayer integration 

. LBTC integrates with leading DeFi applications across lending platforms (e.g., 

) and automated vaults. The platform supports multiple blockchains (including Ethereum, Base, Sui, BNB Chain) and 

 (L2s), positioning LBTC as a versatile cross-chain asset.

Here's how you can stake BTC on Lombard and use LBTC in DeFi and automated vaults.

Lombard Finance (via its LBTC token) offers a compelling way for Bitcoin holders to put their assets into use, earn yield via Babylon staking and gain exposure to the expansive DeFi ecosystem — all while maintaining liquidity. Incubated by Polychain Capital and supported by a robust consortium and growing partner network, Lombard is positioning LBTC as a secure and versatile liquid Bitcoin standard.

It’s easy to participate in the Lombard ecosystem through 

, you can utilize your Bybit Web3 Seed Phrase Wallet to stake BTC and mint 

, Lombard's vault token that represents deposits in automated yield strategies. This provides you with a seamless gateway to access Bitcoin liquid staking and DeFi yields.

Ready to unlock your Bitcoin's potential? 

Intermediate

lombard tutorial.png

Lombard Finance: Polychain-backed Bitcoin liquid staking protocol

The cryptocurrency market has entered a phase reminiscent of past altcoin seasons, primarily driven by Bitcoin's recent rebound to the $94K–$96K range. 

Altcoin season might have come with reviveding speculation 

The cryptocurrency market has entered a phase reminiscent of past altcoin seasons, primarily driven by Bitcoin's recent rebound to the $94K–$96K range. This resurgence has sparked renewed interest among retail traders, shifting focus from Bitcoin to smaller, more speculative altcoins. The overall market saw a 10% increase in value during the final eight days of April, contrasting with Bitcoin's 7% gain. This trend indicates a growing appetite for risk among investors, particularly in meme coins, which have seen a surge in social media discussions.

However, caution is warranted as elevated crowd enthusiasm often precedes market corrections. Historical patterns suggest that when buzzwords like "altseason" are dominating discussions, it may signal an impending price exhaustion. The current market dynamics reflect a shift toward speculative investments, raising concerns about the sustainability of this enthusiasm.

Bitcoin's bullish sentiment substantially improves

Bitcoin's position as the leading cryptocurrency has remained steady, with discussions around its price fluctuating significantly. Following a period of pessimism, when predictions dipped as low as $10K–$69K, sentiment shifted dramatically with the price recovery. Now, optimistic projections of $100K–$159K are dominating conversations, indicating a reversal in trader sentiment.

Despite Bitcoin's consistent presence in market discussions (approximately 25% of asset topics), the ratio of bullish-to-bearish commentary has grown increasingly favorable. This suggests a growing confidence among traders bolstered by Bitcoin's recent performance. However, it’s essential to monitor whether this bullish sentiment translates into sustained investment, or if it leads to overconfidence that may trigger a market pullback.

Ethere, once a robust contender in the altcoin arena, has struggled to regain retail investor confidence despite recent bullish commentary and promises of innovation from co-founder Vitalik Buterin. Its social media presence has dwindled to about 6–7% of discussions, a significant drop from previous years. This decline highlights the challenges Ethereum faces in re-establishing itself as a go-to investment in a market increasingly dominated by speculative assets.

Conversely, XRP has seen a notable increase in optimism surrounding ETF approvals, with expectations rising to 85%. This shift reflects a broader trend of institutional interest in cryptocurrencies, potentially paving the way for significant capital inflows. Meanwhile, Dogecoin's potential ETF listings have sparked renewed interest, transforming its image from that of a meme coin to a legitimate investment option. The growing dialogue surrounding institutional adoption of Dogecoin and XRP indicates a pivotal moment for these assets, suggesting they may play critical roles in the evolving cryptocurrency landscape.

Advanced

Intro to Santiment.png

Bybit x Santiment social sentiment report: Altcoin sentiment recovers despite Bitcoin’s resilience

Bybit Spread Trading allows traders to simultaneously buy and sell two related instruments in order to hedge risk or profit from price discrepancies. Read more.

Whether markets are flying high or wobbling unpredictably, one thing remains true: traders are always looking for smarter ways to 

 and find profit opportunities. That’s where Bybit Spread Trading comes in. This feature is tailor-made for those who want to go beyond basic buy/sell plays and start taking advantage of price discrepancies between related instruments. In this guide, we’ll walk through exactly how Bybit Spread Trading works, why it matters and how you can start using it today, whether you’re 

is a newly launched Bybit feature that allows users to simultaneously buy and sell two related instruments — such as Spot, Perpetual or Expiry contracts with different settlement dates — in order to hedge risk or profit from price discrepancies.

This type of trading strategy is popular among institutional and professional traders because it enables more precise, controlled market exposure. However, with Bybit’s interface, the barrier to entry is significantly lowered, opening the door for individual traders to tap with just a few clicks into a powerful set of tools.

At its core, Spread Trading on Bybit is about executing what’s called a combo trade. This means entering two positions at once: one long, one short. These positions are taken on related instruments, such as a BTC Spot trade and a BTC Perpetual contract, with the idea that their prices will either converge or diverge in a way that benefits your position.

When you place a buy combo, you’re buying the instrument with the longer expiration (the “far leg”) and selling the one that expires sooner (the “near leg”). 

A sell combo is the reverse: selling the far leg and buying the near leg. The profit (or loss) comes from how the spread between these two instruments shifts over time.

For example, if you believe the spread between a Perpetual and a Quarterly Futures contract will widen, you can buy the combo. If the spread increases after your entry, that movement becomes your profit. Bybit calculates your 

 prices automatically, based on the mark prices and your defined “order price,” so there’s no need to manually crunch the numbers.

Perhaps the most important feature here is atomic execution. This ensures both sides of your combo trade are filled together, in equal quantities, or the trade doesn’t go through at all. It removes “leg risk,” which is the danger of getting filled on one side of the trade, but not the other. In volatile markets, that alone can save you from an unwanted mess.

Spread Trading on Bybit currently supports combinations such as Spot and Perpetual, Spot and Expiry, Perpetual and Expiry, or even two Expiry contracts with different dates. This flexibility lets you build strategies that align with different market outlooks — bullish, bearish or neutral.

There’s a strong reason why Spread Trading is a go-to for many experienced traders: it allows for strategic plays that are more sophisticated than just guessing price direction. On Bybit, it’s not only powerful, but also convenient.

First, you get price certainty. Your spread is locked in at the price you specify. There’s no 

 between legs because the entry prices are automatically calculated and matched. You’re trading the spread, not the individual legs.

Secondly, the trading experience is smoother. Instead of placing two separate orders and manually trying to sync them, Bybit handles everything as a single transaction. You don’t have to worry about whether one leg gets filled and the other doesn’t — that risk is eliminated through atomic execution.

Third, this setup is a great hedge against volatility. By taking opposing positions on two related contracts, you reduce exposure to sharp price movements. Your P&L becomes more about the relative performance between contracts, rather than the market direction itself.

There’s also a strong cost advantage. Trading spreads on Bybit is significantly cheaper than doing it manually. You pay only half the trading fees you’d incur if you placed two individual trades on the order book. For high-volume or 

, that translates to meaningful savings over time.

Finally, it unlocks strategy flexibility. Whether you're 

 funding rates between Spot and Perpetual, doing 

 with different Futures contracts or taking advantage of price convergence before expiry, this platform gives you the tools to execute those ideas efficiently.

How to get started with Bybit Spread Trading 

Now that you have a better understanding of how Bybit Spread Trading works, let’s look into how to get started. Please note that you’ll need to have a Bybit account in order to proceed. If you don’t already have one, please check out our 

 for more information on how to create a Bybit account.

: Log in to your Bybit account and hover your cursor over the 

: The available spreads are organized in a grid, with each tile representing a unique combo. Choose your preferred combo to trade.

Tiles with a border around them signify that Spread Trading offers a better price. Hover over a tile for more details, or use the bar at the bottom of the grid to explore more options.

On the order placement page, set up your order with the following parameters:

to place your order. A pop-up window will appear for you to confirm your order details. Then, click on 

Congratulations — you’ve successfully placed an order!

You can view your Spread Trading orders from any trading page (Spread Trading, Spot and Futures), as they all share the same order data.

 to view your active orders. You’ll be able to view the combo, underlying asset, order price and more. 

If you would like to adjust your order parameters, you may click on the pencil icon under 

. To cancel your order, simply click on the order’s corresponding 

to view your completed orders. To view each order’s information on each leg, click on the order’s corresponding 

button. For additional insights, click on 

Spread trading isn’t for everyone — but if you’re someone who enjoys strategic trading, hedging or arbitrage, it’s a tool worth adding to your arsenal. It appeals to traders who are less interested in taking a directional bet, and more focused on capitalizing on inefficiencies in the market.

You don’t have to be a pro trader to benefit, either. The simplified execution and intuitive UI mean even intermediate users can explore advanced strategies without being overwhelmed. As long as you understand how spreads work, and how your P&L is affected by their movement, you’re already halfway there.

More importantly, in times of market uncertainty or low volatility — when price action feels sluggish — spread trading gives you an alternative way to profit. It keeps you in the game — even when momentum plays aren’t cutting it.

Bybit Spread Trading is a powerful tool that combines simplicity with sophistication. Whether you're looking to hedge, save on fees or experiment with 

 strategies, it offers a clean and user-friendly way to do so. With lower risk, lower costs and plenty of flexibility, Bybit Spread Trading is a smart move for any trader looking to level up their game — especially when markets get messy.

bybit spread trading.png

Bybit Spread Trading: Smart strategies for market swings

Crypto

Investing

Bitcoin

If you had invested $1,000 in Bitcoin just five years ago, you’d be sitting on roughly $100,000 today. But what gives Bitcoin its value? Learn more.

What-Gives-Bitcoin-Its-Value.jpg

If you had invested $1,000 in Bitcoin just five years ago, you’d be sitting on roughly $100,000 today. If you’d taken an even bigger chance and decided to invest $10,000, you would currently be a millionaire.

Of course, hindsight is always 20/20. Bitcoin network was launched as a peer-to-peer payment alternative to traditional payment methods using the cryptographic protocol. While 

 is used to send and receive its units of currency. It was the world’s leading cryptocurrency in 2009, but there’s no doubt that Bitcoin had an incredibly volatile history.

, the coin’s value experienced unpredictable price swings, often fluctuating by fifty percent in less than a week. The uncertain value of Bitcoin has always been a deterrent for prospective institutional investors, though those with higher risk tolerances have, in fact, benefited.

Even today, twelve years into the coin’s fascinating history, asking 

“What determines the value of Bitcoin?” 

is a reasonable question. An economist might tell you, “The value of Bitcoin at any given point in time is whatever people are willing to pay for it.” And though that answer might not be exceptionally useful, it would be accurate. The value of Bitcoin, like that of any fiat currency—including the very dollars in your pocket—is dictated by the forces of supply and demand.

Below, we’ll discuss the most important things you need to know about how the value of Bitcoin is determined, including why the value of this unique digital asset is often difficult to quantify.

What Are the Problems Bitcoin Is Trying to Solve?

 revealed that Wall Street had created deep-seated problems with subprime mortgage securities. The result was large-scale government bailouts of the existing financial system. Banks were thought of as too big to fail, and the way to get them out of trouble was considered to be printing more fiat money, which would likely also devalue currencies.

As an alternative solution, the pseudonymous figure(s) known as 

 came up with the seminal Bitcoin white paper. The idea was to create a digital currency that wouldn’t fall under the control of a centralized institution.

Here are the problems Bitcoin was intended to fix:

Intrinsic value describes the inherent or fundamental value of an asset or commodity. Crude oil, for instance, is a commodity that can be turned into valuable products, such as gasoline and plastics. Its fundamental value comes from the demand for those goods.

In the past, currencies were backed by gold and other metals, which gave them intrinsic value. However, today’s world currencies are mostly paper money, without backing by physical goods. Fiat money’s value lies in the understanding that it is a globally accepted means of exchange for goods and services.

A store of value is an asset, currency or physical commodity that is storable, retrievable and exchangeable. It should retain its value with time or even appreciate.

For example, gold and similar precious metals are stores of value, as they can be stored indefinitely without deterioration. The same, however, can’t be said for a banana — because it would be pretty much useless in a few weeks.

Throughout much of history, gold and fiat currency have been the standards for money. But unlike the global currency like the US dollar or any other national currency, there is no central bank or institution influencing the value of Bitcoin. Instead of relying on the actions of a federal government and its partners, Bitcoin or digital currencies generally rely on 

With the introduction of Bitcoin and blockchain technology in 2009, Satoshi ushered in a new standard. In terms of value, how does Bitcoin match up to traditional fiat currencies and gold? 

Fiat money is backed entirely by faith and trust in the government that issued it. This is in contrast to the commodity money that preceded it. Commodity-based money could be redeemed for the precious metals behind it, which give it value. So what makes fiat money valuable?

Technically, fiat currency like the US dollar has no intrinsic value. Its value lies in the public faith and creditworthiness of the government that issued it. Fiat currency only has value because society has decided it does.

Gold is considered valuable mostly because people have always accepted it as a means of exchange. Throughout history, gold has been valued due to its appearance and scarcity. In recent times, gold has also acquired industrial uses, making it even more valuable. Consequently, gold can be said to have intrinsic value, unlike fiat money.

Like fiat, cryptocurrencies’ value primarily depends on society’s trusting it as an acceptable means of exchange. But cryptocurrencies are different, and their values also depend in part on their features. 

Some cryptocurrencies like Ether (ETH) derive their value from the utility: the ability to gain access to a specific platform or service. The higher the demand for an underlying service, the more valuable the token’s utility. For instance, the booming NFT market and 

) play a significant role in Ether’s meteoric surge.

Bitcoin’s value derives from several factors.

The value of Bitcoin is directly affected by supply and demand. As with any market-priced good, its price increases with rising demand or limited supply, and decreases when demand falls relative to supply. 

Bitcoin has a finite supply, and the rate at which new coins are being created is predictable. The number of buyers and sellers in the market at any given time is not easy to predict. As a result, Bitcoin can be known for its extreme price volatility.

Bitcoin was designed to have a supply cap of 21,000,000 BTC, with the last Bitcoin expected to be mined around the year 2140. After that, it won’t be possible to mint new bitcoins. This predetermined quantity of Bitcoin supply establishes it as a scarce asset. 

Other traditional stores of value, like gold and oil, are also relatively scarce. But new reserves are still being discovered, and no one can confidently say the exact amount of those commodities that will be in circulation in the future. Thus, their scarcity is difficult to evaluate.

Bitcoin, on the other hand, theoretically becomes deflationary once all 21 million coins have been mined. It’s expected that some bitcoins will be lost and permanently removed from the total supply. This will reduce the supply and increase Bitcoin’s value. This is another factor that gives Bitcoin its value: the idea of its scarcity.

, which seeks to measure the relationship between the currently available stock of a commodity or asset and its production rate. When applied to Bitcoin, the model argues that Bitcoin’s low flow and scarcity make it an asset that keeps its value long-term. However, Bitcoin valuation cannot be based on this model alone. There are other factors which account for the value of this crypto asset.

Since Bitcoin is structurally designed to be finite (you cannot simply “print” more Bitcoin overnight), as long as it has any sort of utility (such as the ability to buy things), it’s expected to have tangible

One feature that gives Bitcoin some of its value is the ability to move large amounts of money quickly, anywhere in the world, without the use of intermediaries or central authority approval. In addition, Bitcoin transfer fees are relatively low and aren’t correlated to the amounts being transferred. This means that transferring $100m worth of Bitcoin isn’t going to cost you significantly more than transferring $1,000.

A practical approach to valuing Bitcoin is based on its cost of production. The total cost to produce a unit of Bitcoin is made up of the cost and efficiency of the mining rig and operational expenses.

The “cost of production” model explains how Bitcoin’s price correlates with the cost of producing it. A new Bitcoin is generated through a process called “

.” Individuals who processed verified transactions and secured the Bitcoin network will be rewarded with a certain amount of BTC as an exchange for their contributions.

Thus, the more efficient a mining hardware is, the more BTC a miner will get. However, a more efficient mining rig leads to a drop in production costs, while a 

 doubles the production cost. This halving occurs because of a stipulation in Bitcoin’s source code that the number of bitcoins released in each block is reduced by 50% every four years. 

This brings us to an interesting question: What happens to the value of Bitcoin when all 21,000,000 coins have been mined?

Bitcoin enjoyed a first-mover advantage by solving the problem of forming a consensus without a centralized party. Its methodology has paved the way for other crypto projects to follow. With relatively higher name recognition, Bitcoin has remained the dominant crypto in 

 since its introduction in 2009, despite creating thousands of new cryptocurrencies. 

However, competing crypto projects like 

 are becoming more popular with investors, gradually closing the gap. More adoption of these altcoins — backed by their utility — could signal a decline in popularity and usage of Bitcoin, which could mean a loss of value for BTC.

Fungibility is the concept of sameness among units or subunits of a commodity. It means that the individual units are interchangeable. 

Fungibility is an important characteristic of Bitcoin because it might be more difficult to value if each Bitcoin were unique and required its own market price. Instead, a Bitcoin or unit coming from anywhere is expected to have the exact same value, regardless of its origin or source.

Bitcoin is built on a decentralized blockchain ledger system which is almost impossible to forge and manipulated. Since the Bitcoin protocol is based on collaboratively maintaining the Bitcoin ledger. That means each transaction needs to be confirmed only after the participating nodes validate it through a joint consensus. These efforts made Bitcoin’s blockchain ledger system transparent, which also means that any attempt to fake a Bitcoin transaction will require the Herculean task of confusing the majority of Bitcoin’s vast network players.

In theory, the only way Bitcoin can be counterfeited is by executing a “double-spend,” in which a user creates duplicate records to spend the same Bitcoin multiple times.

However, the only way double-spending can be effectively carried out is through a 

k: a group of miners must control more than 50% of all network power and dominate the entire network in order to falsify records. What makes this impossible in the real world is the sheer amount of computing power, money, and effort required to pull it off. The secure nature of the Bitcoin network is one of the factors that give it intrinsic value.

The Struggles to Quantify the Real Bitcoin Value

Quantifying the actual value of Bitcoin and other digital assets is a problem that has befuddled economists and investors alike. Bitcoin exists only as bits of code in a vast computer network. To top it off, when compared to most “traditional” investments — namely, stocks, bonds and real estate —  

Volatility describes the manner in which a speculative asset’s value changes over time. Assets with high levels of volatility can create lucrative opportunities for investors, though volatility also increases one’s overall exposure to risk.

If you hope your investment will double in a short amount of time, you should also be aware that this investment could be halved (or worse) in an equally short period. This principle remains true for Bitcoin, other cryptocurrencies (altcoins) — and just about everything else.

As mentioned, 2017 and 2020 were the most volatile years for Bitcoin, with each wave of volatility simultaneously attracting a new batch of risk-seeking investors, even as risk-averse investors turned away. In exchange for accepting this volatility, Bitcoin investors who were able to time their market entries adequately have been heavily rewarded.

Is Bitcoin currently overpriced? Underpriced? Accurately priced? Unfortunately, there is no way to know until after the price trend has unfolded. Several factors combine to make Bitcoin a uniquely volatile currency — including Bitcoin adoption and laws and regulations.

The utility of Bitcoin—how useful it is in “real life”— depends on where the coin is accepted. In an increasingly digital and globalized economy, cryptocurrency or Bitcoin adoption has gained momentum over time, though there have certainly been some bumps in the road along the way.

, “Global crypto adoption has taken off in the last year, up 881 percent, with Vietnam, India, and Pakistan firmly in the lead.” These three countries comprise about twenty percent of the world’s population. However, crypto adoption has been taking off elsewhere worldwide, including the Ukraine, Nigeria, and Venezuela (whose national currency is in crisis). While it seems clear that crypto adoption by financial institutions is moving in a positive direction, the 

 of adoption is still difficult to predict.

Actions from national governments and regulators can also have a strong impact on the value of Bitcoin. When governments make it more difficult to trade the coin — whether through additional taxes, burdensome regulations on a decentralized network, or the reclassifications of assets — the coin subsequently loses value. 

On the other hand, increasing the flow of Bitcoin can cause it to gain value. In the United States, the 

 it will likely change how Bitcoin is regulated — although the lack of a clear plan, once again, leaves investors uncertain about the coin’s relative value.

Whether Bitcoin can be considered a “good store of value” depends on how each investor defines the term. If you ask a financial advisor, they’ll likely say that Bitcoin is not a good store of value due to the coin’s high volatility. 

However, if you ask someone whose only goal is to have more money in ten years than they do now, Bitcoin might be considered a 

store of value — the coin, after all, is 

rising in value over time. If you can ignore the noise surrounding its price movements, it may be a worthwhile investment.

Bitcoin is a volatile asset with a general upward trajectory. Determining the value of Bitcoin can be problematic, especially because of changing regulations and market developments.

As time goes on, the increased acceptance of Bitcoin — coupled with structural limitations regarding its supply — could make the coin inherently more useful. All else being equal, this means Bitcoin is likely to continue its upward price trajectory as long as the cryptocurrency ecosystem is sustainable.

Of course, things are not always as simple as they seem. Very few people can forecast what Bitcoin will be worth in a year with any real degree of confidence. Nevertheless, it’s clear that this unique digital asset has changed the global economy and how we think about asset valuation.

Still, will Bitcoin be the future official global currencies with the growing everyday transactions? That still remains a question we all ponder.

Debunked: What Truly Gives Bitcoin Its Value?

Compete for 2,500 USDT Every Week

Earn Points by Completing Tasks

Event Rules

Register now and get 10 points

Write/Reply Comments (0/5)

Publish an Article (0/5)

Share an Article on Social Media (0/5)

Like an Article (0/5)

Read an Article (0/5)

Weekly Leaderboard