As of November 2021, bitcoin has increased by thousands of times, topping $68000 on the 10th of November in 2021. Then, many economists, mainstream traders, and investors considered bitcoin a scam only, but now it has gained considerable traction.
Bitcoin has transformed into a mainstream investment class backed up by large companies, investors, and traders. To get some valuable information about bitcoin trading, check the https://crypto-code.live/ . You might wonder why cryptocurrency stakeholders and traders are exceedingly bullish on this virtual coin. Let’s find out why the value of bitcoin keeps going up.
5 reasons why the value of bitcoin keep increasing
We have numerous assets in this world classified as a store value. One of the most common investment assets amongst mainstream investors is precious metals. Gold, Platinum, and Silver are traditional investment asset that offers a steady and moderate return rate.
Gold is a finite asset, but we still don’t know how much exact amount of gold is there. The white paper of bitcoin clearly states that how many bitcoins are there. Bitcoin is the only investment asset with a finite supply. Since bitcoin’s market value is pumping at a very high pace, Bitcoin is used against inflation as a hedge.
Bitcoin halving is very important to understand how bitcoin lives up to its promise of finite supply. For example, although mining 210,000 blocks nearly take four years to mine every block, the bitcoin algorithm and network assigns 10 minutes to a miner.
After every halving, the bitcoin mining reward is reduced to half. For example, the first bitcoin mining reward was 50, and once bitcoin miners successfully mined 210,000 blocks, the block reward was reduced to 25 BTCs in 2012.
Bitcoin halving cut the supply of bitcoin by half amount every year and the inflation rate. In the case of USD, the supply of fiat currency keeps increasing, which lowers the market value of USD. However, after every bitcoin halving, the market value of bitcoin has skyrocketed, surpassing its all-time high every single time. After the previous bitcoin halving, bitcoin touched $65000 in April 2021.
The utility of bitcoin as an investment asset has inclined dramatically in 2020 amongst average investors and mainstream investors. Numerous institutions having both public and private domains have invested and converted their holdings into bitcoin.
Micro strategy is currently the leading Bitcoin holder with a public domain, followed by Tesla motors. Even after suspending bitcoin payments, Elon musk refused to sell his bitcoin holdings. Some of the companies that have invested the most significant amount in bitcoin are Tesla motors, Micro strategy, Square, and Galaxy trading.
As per the reports, the bitcoin treasuries consist of companies like Ruffer, Microstrategy, Galaxy trading, Square, Hot & Mining Corp, Voyage, Rest Blockchain, Bit Digital, Coin Citadel, Advanced Bitcoin Technology, Digital X, Hive Blockchain, Cypherpunk holdings, Advanced Bitcoin technology, Digital X, Hive Blockchain, DIGG digital Assets, Argo Blockchain, FROM Crop, Black one, The Tezos Foundation, Stone Ridge Holdings Grdu, Grayscale Bitcoin Trust, ETC Group Bitcoin ETP, 21 Shares AG, Bitwise 10 cryptocurrency index fund.
Bitcoin whales are an essential part of this community, but the effects of bitcoin whales on the bitcoin marketplace are not beneficial for other retail and prominent investors. No movement of bitcoin whales in the cryptocurrency marketplace can ultimately lower down the liquidity of this token, whereas a significant movement of tokens from this bitcoin whale can lead to a price plunge.
Bitcoin is maturing every single day!
The evolution of bitcoin over the passing decade has been commendable. Due to the decentralised features, people used bitcoin to pay for illicit activities like money laundering and purchasing drugs from the dark world. However, now bitcoin has transformed into a very potential monetary system. Now the accessibility of bitcoin is exceedingly high as you can buy, sell, and trade bitcoin using an android phone only. Moreover, now more and more merchants have started to accept bitcoin payments.