The value of the newest digital coin which is named bitcoin has reached new heights. In fact, it is touching new heights almost every day as many investors are betting on cryptocurrency in order to make it a mainstream asset. Very recently bitcoin has topped over 25 lakhs and the experts of Teenagers In Cryptocurrency believe that the value of this digital currency will further rise in the coming years.
As the value of bitcoin increases, it has created a kind of parallel debate between bitcoin bears and bulls. The bulls make a prediction that bitcoin is an acceptable asset whereas the bears remind us how volatile this digital coin was in the early days. In the last few years, there has been a huge popularity of Bitcoin, but at the same time, with lockdown, there was a huge downfall in the market of Bitcoin.
There are many people who wonder why this digital coin is getting so much popularity. Here, in this content, you will come to know about its possible reasons. Now, let’s have a look at them below-
It has received immense popularity during the time of the pandemic
The popularity of bitcoin faced a big blow in the year 2018 and it remained the same till the mind of the year 2019. But in the year 2020, the popularity of bitcoin has started reaching new heights almost every day. During the time of the Covid19 situation, a financial emergency takes place around the globe. It generally has a first-mover functioning rate and gives better revenue and visibility if you compare it to other forms of revenue generation.
Not only this, the growing fear among people regarding their traditional assets has created the right environment for the arrival of the bitcoin era. The currency that was written off by an expert gamer a few years ago took a U-turn and there are many big brand investors and companies that have shown their interest in investing in cryptocurrency.
As per the views of the cryptocurrency experts, more and more global companies have shown their interest in investing in digital coins that are considered almost equal to traditional assets such as gold, money, equities, etc. The global investment banks and financial service providers also predicted that in the long run, the value of bitcoin will see a sharp rise and its volatile feature will be in control completely.
A powerful alternative asset during the pandemic
When a pandemic takes place, most of the investors take the step to secure their money in safe heavens by purchasing gold while some others bet on this digital coin. As a result, both classes of investors have gained.in fact, those who were a bit skeptical about whether they should invest in it or not have been rewarded handsomely which is almost five times higher than those who have gained from the gold investment. After going through all these, the demand for Bitcoin has been increasing to a large extent among consumers and merchants.
The limited supply of bitcoin is another important reason behind the growing popularity of cryptocurrency in today’s age. It should be noted here that the supply of bitcoin has been limited to only 21 million. It should be mentioned here that since the supply of bitcoin will remain the same for the rest of the years, its value remained unaffected during the pandemic situation.
Eliminated the role of banks like financial institutions
For transferring money, banks charge a certain amount of fees from the account holders. However, in the case of cryptocurrency, the members in the blockchain act like an intermediary, and their compensation level is also minimum. Anyone having a smartphone can use crypto for making payments without any requirement of creating bank accounts.
The money will be yours only
People mostly need to hand over their money to banks like financial institutions. During the time of the financial crisis, some banks had even frozen the accounts of the citizens. Bitcoin cannot be copied at any length, and it is also transferable in nature, hence that is also a benefit that you get.
Therefore, these are some of the most important reasons for which the popularity of cryptocurrency has increased. In fact, it will also reach new heights in the near future soon.