Just yesterday, Bitcoin broke the $58,000 mark and made new highs again. The bullish run of the cryptocurrency has increased its pace even further in the past week. And as Bitcoin prices increase, investors get even more bullish regarding the future of the cryptocurrency. The $1 trillion market capitalization had a huge role to play in this. As it has drawn a mental picture of the sheer market size of the cryptocurrency in investors’ minds.
Increasing trust in Bitcoin with surging prices
Research shows that over 50% of Americans now believe Bitcoin to be a safe form of investment. And 41% among them don’t find any difference between investing in crypto and stocks. As big investors, companies, and prominent individuals favor cryptocurrency, it is obvious why the thought process about the currency is changing. Just yesterday, I wrote an awesome tweet about why investing in Bitcoin now is better than ever. The guy said that Bitcoin had reached a critical mass of acceptance, and even though it might have a lot of ups and downs even after this, the chance of an entire crash is no longer viable.
CEOs of digital payments platforms are also advocating in favor of crypto coins. They also see that the sentiment regarding them is changing, and slowly but steadily, these currencies are being seen as assets. Another research shows that most Americans want big companies to start accepting crypto as a form of payment. Let’s take Tesla for an example; the company invested $1.5 billion in Bitcoin and is also soon going to start accepting payments using it. This was one of the major steps that led to the widescale acceptance of cryptocurrency.
On the other hand, payment method companies like Visa and Mastercard plan to integrate Bitcoin in their payment portals by the end of the year. Apple that once banned crypto apps from its AppStore, has now integrated Bitcoin in Apple pay using Bitpay. The point is that the acceptance of Bitcoin and other cryptocurrencies by big companies are pushing them towards widescale acceptance even by the general public.
But what’s the problem?
Well, the biggest one is volatility. The way Bitcoin prices rise and drop, they are not viable for any economy, says Robert Minter, Director of Investment Strategy. A product that is worth 1 Bitcoin today can be worth 2 tomorrow and 0.1 the day after. The fact is that the prices of products can’t be fixed in terms of Bitcoin. So, till the cryptocurrency reaches a level of stability, it will be difficult for it to go mainstream as a payment method.
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