4 Reasons Why Bitcoin Price Are On Rising

bitcoin

The market of cryptocurrency has continued to witness a boom despite the global pandemic wreaking havoc on all the planet’s significant economies that also makes it the best E-business investment. Many startups of crypto have emerged in the space during this pandemic to cater to the ever-increasing demand for Bitcoin and alike cryptocurrencies.

Four reasons why cryptocurrency prices are rising:

Similarly, many currencies of crypto prices have been rising and to see these investors are wondering why. Because of that, it is the best sustainable strategy that also grows your business. Here are four main reasons why cryptocurrency prices are rising:

Institutional Adoption

Cryptocurrencies, Bitcoin especially, are now considered as a safe-haven asset against the volatility of the market and inflation. The current economic climate and society also bring a situation for people to hold less cash and stay hedged against the swings of the market.

Recently, there has been a trend where companies of the public are converting their cash into cryptocurrency. Square, a payments company in America, bought Bitcoins that are worth $50 million. Following this, Microstrategy- a public listed company in the US, converted about $425 million worth of cash reserves into Bitcoin, considering it to be a good store of value.

Many other companies have since followed this trend. The corporate giant’s confidence in cryptocurrencies has added more merit to it as a value store.

Paypal & Cryptocurrencies

In October 2020, Paypal the globally digital payments company announced that it would be launching cryptocurrency selling and buying features on its platform.

The launch included four majorly traded currencies, namely, Ethereum, Bitcoin Cash, and Litecoin. Paypal has also announced allowing transaction plans to be made using cryptocurrencies.

Paypal is known to have about 420 million users who will now be capable of adopting crypto as a means of payment.

Bitcoin Halving Driven Scarcity

It is not news that most of the cryptocurrencies in the market have a limited supply. Bitcoin is also included in it. This year the third Halving of Bitcoin took place.

Bitcoin halving is an important event in the network of crypto that happens every four years. The network of Bitcoin works because it introduces new bitcoins in the market by a process called crypto mining. Bitcoin miners do this mining by verifying Bitcoin blocks which are groups simply of Bitcoin transactions. Every 10 minutes, a miner who verifies one transaction block and adds it to the network of Bitcoin gets awarded a certain amount of bitcoins as a reward.

Since Bitcoin holds more than half of the market capitalization, the variation of Bitcoin price may affect other currencies.

Easy Accessibility To Public

Cryptocurrency is a digital currency that can be used as both – mode of exchange and a store of value.

While it just started to gain attention as a legit type payment method, it established itself as a new class of asset over the past decade.

Even if the public is unwilling to use it for the purpose of transactions, many want to convert their cash into crypto because they believe that its deflationary type of nature makes it a better store of value and a hedge against any inflation.

Bottom Line

If the crypto market’s rising prices have got you thinking that it is too late to invest in cryptocurrencies, but in the future, cryptocurrency is greatly developed, mainly the future of bitcoin, understand that this is only just the beginning. With more countries seeking to regulate the market, cryptocurrencies will go mainstream.

 

Read More: Role Of IT Sector For The Private Businesses.

 

 

 

Ahmad Sabih

Ahmad Sabih have been at the forefront of hugely successful eCommerce and digital marketing companies with millions of monthly users.

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    Ahmad Sabih

    Ahmad Sabih have been at the forefront of hugely successful eCommerce and digital marketing companies with millions of monthly users.

    Connect @ Social

    Subscribe for Updates

    Subscribe for Updates


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