What is the Hype Around Cryptocurrency?

While cryptocurrencies such as Bitcoin and Dogecoin have existed for years, they have recently risen back to national prominence after soaring in value. They have particularly struck a chord with millennials and young people in general, who have become very interested in this new wave of exciting digital investing. However, this begs the question: why is there so much hype around cryptocurrency?

If you are not familiar with cryptocurrency, it is fairly self explanatory; it is a digital form of currency that can be used to make purchases like regular money. Nonetheless, a key distinction between the two is that cryptocurrency isn’t issued by the government or any central authority for that matter, rendering it completely independent of any inflation. There is also only a finite amount of cryptocurrencies like Bitcoin in existence, while hypothetically, the government will never stop printing money. 

Similarly to stocks, cryptocurrencies gain value based on how the internet community is buying and selling. If a great amount of people are interested in a specific type of cryptocurrency, it can see a rise in value. For example, Elon Musk’s obsession with Dogecoin prompted greater user interaction and an increase by thousands of percent . Additionally, it’s worth noting that basic economic concepts such as supply and demand still apply to cryptocurrencies and play an essential role in determining their value.  

During the pandemic, people have paid more attention to these cryptocurrencies, which is why they are currently as relevant as ever. Even within the School community, you don’t have to look far to find someone with an interest in cryptocurrency. Junior, Rishi Dhawan, an avid crypto aficionado, noted that his biggest takeaway with his digital currency experience was “how crazy it is to see how much a group of people can affect the market through public hype.” Like it or not, one thing is clear; in the age of the internet and artificial intelligence, crypto is here to stay.