Rohan MathawanThe crypto world is getting more popular day by day, with an increasing number of institutional and individual investors. And one of the main reasons for its increased popularity is Bitcoin. The digital cryptocurrency has become one of the most valuable cryptocurrency, especially during 2020. Here we take a look at the factors that increased the popularity of Bitcoin.
Bitcoin Bull Run
The bull cycle is one of the main reasons why yet again, Bitcoin is one of the most talked-about cryptocurrencies in 2020. Firstly, the Bitcoin halving has undeniably impacted the supply of Bitcoin because it decreased the reward of the Bitcoin miners, from 12.5 BTC to 6.25 BTC. Because the reward got smaller, mining also wasn’t as profitable as before the halving (especially for solo miners). Hence, the demand for Bitcoin outpaced the supply ( the supply is restricted to 21 million BTC, which also makes Bitcoin a scarce possession), and the price increased as a result.
However, no one could have predicted that the bull market phase will continue in 2021. During 2020, month after month, the price noticeably increased, and it broke $20,000 in December 2020. What’s more, the price skyrocketed again in January and hit $40,000. So, it’s safe to say the rally isn’t running off of steam.
Subsequent Trading Boom
Consequently, the interest in investing in BTC has also risen substantially. Today, anyone can use a smartphone or table to register on a trading platform as long as it has a reliable internet connection. So, it is possible for regular people to get BTC through online exchange sites.
Moreover, a lot of sites are optimized for mobile use and have their own dedicated trading apps. Therefore, online trading platforms have gained many new members that were eager to trade and obtain Bitcoin. Furthermore, there are many new online trading sites, so you can definitely find one that is trustworthy and it offers the best options for its users.
For instance, an exchange site that supported by top-notch AI technology is Bitcoin Circuit. In fact, on average, on the site, users can earn a daily return of up to 60%. As the site is an auto-trading platform, users that are complete beginners don’t need to spend a lot of time analyzing markets in order to become a member register on the Bitcoin Circuit official website with a minimum deposit of $250. Also, you can download the mobile application if you’d rather trade on your mobile device.
Retail and Institutional Investors
What also influences the upward trend of the price of Bitcoin this time around is the increased interest of retail and institutional investors that also want to invest in BTC and accept payments in BTC. One of the benefits of accepting payments in BTC is that the transaction fees are very low.
Furthermore, they also get to attract customers that want to use their BTC to purchase goods and services online and offline. Besides, institutional investors like hedge funds are also looking to invest in Bitcoin and other cryptocurrencies. Hence, the demand for Bitcoin keeps rising, while the supply is taken over by large investors.
Advantages of Using Bitcoin
The advantages of using Bitcoin today are widely known. As we mentioned earlier, the processing fees are very low, which is a plus whenever you’re trying to transfer money abroad. Furthermore, the processing time lasts about 10 minutes, and that is again another factor why people prefer to use cryptocurrencies to fiat currencies.
Moreover, the blockchain network isn’t affected by monetary policies or regulations by third parties because it is a decentralized peer-to-peer network. So, people today have a different perception of Bitcoin. It is perceived as a safe haven asset or so-called digital gold that is not directly affected by the financial crisis.
This is another major advantage for Bitcoin users. In addition, it offers transparency regarding the data of the network; for example, the users on the network can see the exact number of BTC in circulation. However, when it comes to the personal information about the users, the data about them that connects their Bitcoin wallet to their identity remains hidden.
Conclusion
In conclusion, there have been major changes in the crypto industry due to Bitcoin’s long bullish cycle. An increasing number of people are aware of the benefits of blockchain technology and cryptocurrencies. What’s more, there are a lot of companies, major brands, that support Bitcoin or are developing their own cryptocurrencies.
On the other hand, the predictions for the price of Bitcoin are very positive. The mark of $100,000 is achievable by the end of 2021, while others claim it is possible to reach this new high price in 2025.