What Does The Future Hold For Bitcoin & The World Of Streetwear?
In the last 24 hours Bitcoin reached its highest ever value, going above $14,000. How long can the Cryptocurrency continue to rise?
With more people than ever having internet access and more things being done virtually, it only seemed like a matter of time before there was a real life virtual currency. Bitcoin has been around now for some time, yet it has completely taken experienced investors by surprise now hitting record values. However, how long can the so called ‘Bitcoin Bubble’ last for? Like the share prices of the Wall Street Crash of 1929 and more recently 2008, whatever goes up must come down, so is now really a good time to invest in Bitcoin?
The currency is made available through a complex computer server system also known as mining with the creation of 3600 Bitcoins each day. There are now 16.5 million Bitcoins in circulation to what is stated as a maximum overall limit of 21 million.
Above: The Bitcoin Twins, the Winklevoss brothers invested in Bitcoin from the very start and are now both Billionaires from the Cryptocurrency.
With the much more stable currencies such as the Pound and the Dollar struggling, you would think there would be a place for Bitcoin in the more forward thinking world. However, there have been many questions from financial experts regarding the ‘Cryptocurrency’. The volatility of Bitcoin remains one of the main issues, massively fluctuating in price with it’s value at just over $1,000 at the beginning of the year. This volatility remains a problem when buying products online as companies would constantly be changing their prices to keep up with the changes, that’s if they were only to accept Bitcoin and nothing else.
In time, if Bitcoin starts becoming less volatile and the circulation increases, then it may start appearing in more streetwear stores for example if a store wanted to do an exclusive sneaker drop and the only way to get your hands on their products was to pay using Bitcoins, then this may attract a lot more interest. However, at the moment it is hard to see who is going to take the leap of faith into the Bitcoin world.
Above: Will stores like the newly opened Supreme Brooklyn store start accepting Bitcoins?
However, in addition to its volatility, there is also the issue with the types of places you can spend your Bitcoins and the impact this has on the rest of the market. A lot of the people who spend their Bitcoins do so on the dark web as it is less easy to trace because it is the only decentralised currency in existence. The fact it is a person to person currency is also an issue with companies, as there is no central bank in which to store anything made from sales etc.
Another problem with Bitcoin payments is that there are no standard laws with regards to tax and this only adds to the sense that it is a completely unregulated currency, with the risk factor being so great and nobody to turn to if things go wrong. Lastly, the fact that Bitcoin is a virtual currency means that it faces a possibly greater vulnerability to theft. Hackers are getting more and more clever and no matter how strong and secure people say the currency is, there is always somebody developing a way to get round this.
Above: One of Australia’s largest streetwear suppliers Culture Kings announced last month via Instagram they will now accept Bitcoin for purchases.
Overall, Bitcoin still has a long way to go to even be considered by companies and online stores as a form of payment method. Despite this, it would not be a surprise if someone did take the leap of faith and, like in fashion, others would jump up and follow the trend. Will Bitcoin ever become like the next Paypal of the online world? Will streetwear collectors and sneaker enthusiasts soon be able to purchase their sought after goods with Bitcoins? No one really knows what to expect but surely it’s only a matter of time before we start seeing the ‘B’ symbol in the likes of Supreme, Patta and Palace stores on release day.
Above: To invest or not to invest? That is the question.