Bitcoin is all over the news nowadays, and companies all over the world have started to support it since its price reached $ 50000. Besides the fact, that bitcoin does not a physical presence and it is backed by blockchain technology which has been repeatedly criticized for the open ledger to everyone, digital currency keeps on catching the attention of hundreds of investors and traders all around the world. If one is interested in bitcoin investment, there are platforms like bitcoinprime which could be helpful in investment procedure.
There were many technical barriers that could have affected the bitcoin price negatively, like retail payment issues, privacy and security issues, but instead of all these negative points, bitcoin managed to enhance its market value.
Reasons behind bitcoin’s triggered price:
The role of Tesla in making bitcoin a “big thing” is not negligible, it was reported by analysts at Wedbush securities that Tesla invested $1.5 billion in bitcoin, and earned a rough profit of $1 billion. Along with Tesla, many other billionaire investors are confident about bitcoin’s potential to act as a “store of value”.
The investment by Tesla is considered one of the reasons behind the recent success of bitcoin in the digital currency market, those who were reluctant to invest in bitcoin and were waiting for some big and well-reputed organizations to take the lead first are now more confident about bitcoin’s authenticity.
It’s all a scarcity game, as people got to know that bitcoin is limited, and it will run out from the market sometime, this pushes investors and traders to take the advantage of the opportunity. Remove the element of scarcity and bitcoin’s worth is in danger.
Inflation also plays a major role in picking up the bitcoin prices. Increased inflation worries people about the future, which makes them invest in safe-haven assets.
The involvement of online payment companies have also played a major role in triggering bitcoin price, other than Hawaii, customers from the US are allowed to hold four cryptocurrencies bitcoin, bitcoin cash, Litecoin, and Ethereum.
Many companies will not say it openly but, but every corporate investment fund that has bought bitcoin is anxiously waiting for the new investors to invest in bitcoin in order to boost up the price, or at least keep it steady.
What could possibly cause the bitcoin price to rise further in near future? This is quite a relevant question at this point in time, and considering the current and previous scenario, the most reasonable answer is “large-scale buying”.
After analyzing the current market scenario of bitcoin, two types of queries make sense. One is that, is there any limit to bitcoin’s price ascension? And the second query is what if it’s a global scam, just assume what if Tesla and PayPal completely pull their hands off from bitcoin? What if the price increase was artificial? Well, the possibility of such a disaster is hard to consider.
Bitcoin is the new gold and as more trustworthy investors would keep on investing, more its value is expected to increase. The thing that is important to keep in mind is that it’s about “scarcity” that cashes everything regarding bitcoin.