Bitcoin reaches record high; what does this mean for the future of Cryptocurrency

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CHATTANOOGA, Tennessee- Cryptocurrencies such as Bitcoin continue to experience extremely high levels of volatility.

“The only question is what’s the price,” said VP of Barnett and Company Chris Hopkins.

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Using Digital currency is nothing new, that’s done when we use a credit card or buy something online.

“A vast majority of the money we spend a day is not physically a paper dollar, it’s a digital representation,” said Hopkins.

Cryptocurrency’s big difference is there is no physical coin. The most well-known cryptocurrency is Bitcoin. Over the weekend Bitcoins’s price passed $61,000 according to CoinDesk 20.

“Since this time last year, it is actually up in dollar terms 900%. But we’ve also seen periods of time, where it’s fallen 80 or 90%,” said Hopkins.

Despite its currently high trading value Hopkins said it’s not stable enough to be an official currency.

“The value of our dollars remains relatively stable. That’s because it’s backed by the US government. With cryptocurrencies, it’s not backed by anything. Quite literally it’s only worth what someone else is willing to pay for it,” said Hopkins.

Hopkins said although it’s unlikely cryptocurrency will become our new currency, companies such as Tesla do agree to accept Bitcoin as payment.

“Suppose I signed a contract to buy a Tesla two weeks ago and then I go to pick it up today. I have to go turn my dollars into bitcoin, the price of that car went from $60,000 to $80,000 because of the change in bitcoin value,” said Hopkins.

Some financial experts say cryptocurrency is the way of the future. Others say investing in Cryptocurrency is similar to gambling in Vegas.

“You can talk to a lot of people who are real bitcoin proponents who will definitely disagree with that. They see the future of bitcoin as replacing currency and in my opinion, it’s gambling. You’ve had a pretty nice run how much higher going to go is anyone’s guess,” said Hopkins.

Hopkins said if you are interested in investing in cryptocurrency view it as a small part of your portfolio you are willing to lose due to the high risk.

Hopkins also added a major success from cryptocurrency is with Blockchain technology which helps keeps information secure.