Bitcoin’s story in the world of finance and economy has certainly been one to look out for. The value of Bitcoin has just about everything that a modern-day blockbuster does. There are significant highs, lows and even turns that make no sense and still get you excited. Over the last ten months, Bitcoin prices have seen a significant hike in value. It is not just Bitcoin but also Ethereum (Bitcoins arch-rival) which has kept increasing in value. Now there are various theories that people have in mind but none has emerged above the others so far. So here are a few reasons why Bitcoin’s price seems to be rising indefinitely. For more information visit Bitcoin Storm UK.
The Supply blockage
Not too long ago, there was a significant event in the world of Bitcoin enthusiasts and crypto lovers. This event, referred to as ‘Halving’, cut down new BTCs being produced to half, which caused a steady rise in the value of Bitcoin for a while. The rise that should have at some point peaked, kept going on and today we are looking at BTC value flying close to its all-time high record. As the price of Bitcoin increased, a lot of whale accounts which possess over 1000 BTCs decided to hold on to their Bitcoins rather than letting them in the market. This caused an overall drying up in terms of supply.
The Newfound Demand
Demand for Crypto has been a lot more than it used to be. Almost every other week, a new company embraces crypto which leads to more and more people taking an interest in this field. After the pandemic began, people were reduced to their homes. Here, many found themselves idle and this led to them exploring the complex world of crypto. If you couple this with the constant big company attention that crypto has been receiving, the drastic increase in demand starts making more sense.
Just the other day, PayPal announced their association with Bitcoin which led to a large chunk of the population having an epiphany of sorts. Anyone who took the slightest interest in Bitcoin could easily see that the prices had been rising insanely over the last few months. This led to a desire to invest in cryptocurrency with Bitcoin in the spotlight. Unfortunately, investing in Bitcoin is not as easy as it seems and most companies and accounts are reluctant to release their Bitcoin when its price is set to increase drastically again. The creation of this demand itself has fueled the surge in BTC value. Bitcoins value was just above ten thousand not too long ago. This was considered decent by many but as it kept on increasing, it raised a lot of eyebrows. Recently, the value crossed the eighteen thousand mark and if it continues at this rate, it will set some great new records for itself.
The Market Situation
There has been a lot of institutional attention being given to Bitcoin since its big breakout. This pandemic, Bitcoin outperformed gold and emerged as the bigger and better safe haven asset to have. This was very surprising as gold is usually the best asset during lockdowns as its value increases significantly. Bitcoin even performed better than PayPal in terms of transactions over the last three years. This of course has led to various big brands and well-known hedge funds to invest in Bitcoin. As this process continues, Bitcoins value will surely go up and simultaneously, there is nowhere for most people to unload Bitcoin unless they are trading it for a profit. There aren’t a lot of retail options available in the market today where one can simply go and spend a portion of their Bitcoin for a coffee and a sandwich. Having more of such retail outlets will surely promote offloading your Bitcoin and bring more balance to the BTC value. The only problem here is that while many countries have changed their stance on Bitcoin, all are yet to welcome it.
Bitcoin’s best feature is that it leaves no trace. You can trade in Bitcoin from any corner of the world easily without having to take any extra efforts. Once you have a secure e-wallet, all that’s stopping you from performing in the world of crypto is you. Unfortunately, things are still mostly digital for people in many countries who cannot exactly outpour their Bitcoins. This leads to many people hoarding Bitcoins which in turn creates a great demand. This situation is further tightened by the fact that there are just about another four or five million bitcoins to be mined from a total of about twenty million. Many analysts have consequently predicted that the value of Bitcoin could shoot through the roof at this rate, given the right circumstances. So we all might as well get our hands on Bitcoin while we can try.