Bitcoin has been on the financial market for more than a decade now, and at the moment, it is peaking at the high I have never seen before. It seems that the trend isn’t going to stop any time soon, and most of us are now focused on the further development of the ongoing situation. Financial analysts and major financing players all over the world are expecting BTC to keep going up in value, with some predicting a price well in the region of over $100 thousand for one coin. Of course, there are still those who are wary of this crypto and are looking for ways to make sure that this crypt should be their next significant investment. We are here to push them in that direction by writing about the six reasons why Bitcoin is the fastest growing investment in history. There are many reasons why things are like this, and these are just some we found exciting but reliable in backing BTC as the dream crypto of investment.
Those who dug deep into the trenches of crypto-investing are looking to send their BTC into speculations of private nature and various investment funds. When large traders do this, it seems like the BTC market isn’t saturated enough, and there is a shortage going on. Those looking to buy and trade this crypto then get the impression that there isn’t enough of it circulating, which spikes up the price. Changes like these are felt on digital currencies’ financial market because there’s a limited amount of BTC to be dug up. When significant investments think that the moment is right for the next spike in the price, they pull their BTC from the exchanges. Now you know that this is what happens when you see that this virtual currency’s cost goes up.
2. Increasing Liquidity
Today you have many big and small payers involved with Bitcoin. Everyone wants a piece of it. In the past, the price of it fluctuated because the liquidity rate was low. Today it happens for the opposite reasons. The trading mechanisms expanded, and there are more of them than ever before, and most are focused on the deep liquidity. Considering that this wasn’t the case in the past, investors disliked digital currencies. Today, investors are not discouraged by the BTC’s volatility; they’re attracted to it.
3. Media and Social Networks Hype
In modern times most of the happenings are fueled by media attention and social network presence. You can even start a revolution this way. But in the words of one famous English band, the Oasis, if it comes to it, I’m gonna start a revolution from my bed. Thanks to the development of the internet and technology, this might be achievable today. The whole frenzy with BTC began thanks to the media frenzy surrounding it and all the hype you can feel on social networks. Today, more than ever, the price is dictated and pushed up by media reports focusing on digital currencies. Thanks to their focus on this particular currency, the bubble started to grow, and the price spiked. This is what makes it wise to invest right now and remain wary of the bubble bursting.
Back in the early days of virtual currencies, people were suspicious of them. For a reason, they were unknown, secretive, volatile, and couldn’t have been trusted. Today, things have considerably changed. Not only that the commoners and enthusiasts are focused on this currency, it is the subject of interest of many major retailers and investors, but also hedge funds. Thanks to the backing of some big names in the industry, the price of BTC went up. It all started when the banks showed desire and started investing in BTC. What followed is that big player on the market such as PayPal now allow BTC payments. The number of names tied to this particular digital currency is only going to grow in the future. This will further spike the interest in investing, and if you want to be sure that investing in this virtual currency is a good idea, please visit icoholder.com.
5. Growing Distrust in FIAT
The current banking system is under a lot of pressure these days. One of the major players in the financial market, the US dollar, is losing confidence due to the United States’ political instability. Because of this, people are quick to search for alternatives. We shouldn’t even mention the ongoing coronavirus pandemic, which is hitting the whole world and is changing reality as we know it. The financial markets didn’t go untouched. Most people who lost faith in traditional financial instruments looked up the alternatives. They all came to the same conclusion – investing in BTC should be their next move. In this regard, BTC is no different from gold, for example. The big countries such as India now have the value of their currency tied to the digital one in Bitcoin. When the rupee and the dollar are unstable, the most popular digital currency seems like a good idea.
6. Shortage of Supply
Demand and supply. The world of finance revolves around these two things. The BTC price received another boost in recent times, and it all comes down to scarcity. As you already know, the amount of BTC that can be mined is limited. At any given moment n the future, there’s only going to be 21 million BTC available. Nothing that happens is going to change this. At the moment, it is estimated that there is more than 80% of it mined ad out on the market. Considering how many people are mining it at the moment, the total amount is going to be reached soon. The one thing that pleases the investors is that despite the increase in mining, which generates 12.5 BTC every ten minutes, the total amount of pieces mined gets halved every four years. Despite this, we’re going to feel the shortage of supply of it in the future which will keep the price up.