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How Has Bitcoin Become One of The Major Currencies to be Used This Year?

Bitcoin has traditionally struggled with keeping a certain value in the market. This extreme volatility has drawn a lot of people away from investing in BTC. However, over the past 12 months, Bitcoin’s value has seen a steady and significant increase in price. This increase has led to a higher number of people to explore Bitcoin as a feasible and healthy option for the future.

One of the most baffling facts that came in earlier this year was that for once, an asset like Bitcoin had outperformed gold in the time of this financial crisis. This is a very big deal as most people look at gold as a safe haven asset which is bound to rise in value during the time of a crisis. This pandemic, everyone was expecting gold to do very well in the market and it surely did so too. Unfortunately, Bitcoin stole this thunder from gold by doing much better on a whole different scale. To know more about Bitcoin visit Bitcoin Evolution UK.

How Did This Happen?

There are various reasons that led to the increase in demand for Bitcoin this year. Among these, the most prominent one has been the pandemic. As the pandemic forced more and more people to stay home, a lot of them explored the world of crypto and began to invest in it. As of today, over 15 million BTS units are in circulation. This makes it tighter on the faucet end as there will only be a maximum of 21 Million BTCs in the world. Recently, after an event called the halving took place wherein new BTCs produced were halved, the value of Bitcoin rose by a lot. In fact, this value has been the peak of Bitcoins value in over three years and as we reach near the Bitcoin production drop, this value is bound to go higher.

What makes Bitcoin so lucrative is that it is completely off the books and anyone can invest in it. You don’t need to access certain utilities in order to access Bitcoin and it is a tax-free alternative to any other form of investment which raises questions. All one has to do to own Bitcoin is secure an e-wallet and you can store all your Bitcoins without any trouble. People have been using Bitcoin core as a priority alternative for a while now, but many new-gen Bitcoin users have turned their heads to newer alternatives and better e-wallets.

The recent involvement of various companies has also pioneered this process. PayPal’s involvement with Bitcoin was an eyebrow-raiser for many and it further strengthened Bitcoin’s image in the market. Just by knowing that PayPal is involved with Bitcoin, many people started looking at cryptocurrencies and explored their options in the field.

Furthermore, many large companies have entered the crypto market on an institutional level. Big-name hedge funds like square have invested a lot in crypto and this has ensured people of crypto’s future in the market.

Where Does Bitcoin Stand Today?

On an institutional level, the participation is high but this has not fully transcended into retail just yet. There aren’t a lot of every day bars, cafes and other places around the world which accept Bitcoin as a currency and this deters Bitcoins progress significantly. Ideally, if more places were to accept Bitcoin for such hospitality services, people would take out Bitcoin a lot more and put it back in public circulation. Instead, due to the increase in value, people have held onto their BTC. Many people are reluctant to pour their BTC back into the market as they expect the price to rise even further. This has created a rise in demand and a decrease in supply.

Bitcoin is also significantly different from other investments. Usually, we look at equity where the past performance matters for the company. Bitcoin, unlike any other asset, is not tied down by any of these norms. It is even free of countries and other entities. This is exactly what has led to various countries like India to start investing in it. The best part is that one can trade in Bitcoin without ever having to move from their place.

Bitcoin has gained major popularity over these ten years and it has really burst onto the scene over the last ten months. Many experts believe that in the near future, it will further rise to popularity. This is what fuels people’s participation in it. As an asset of the future, people all around the world want Bitcoin on their portfolio.

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