Reaching the price value of $22,000 was absolutely not an overnight walk in the park for bitcoin. The 11 years of struggle, various price fluctuations, multiple successes, and their comparable losses; all contributed to make bitcoin the first and largest profitable cryptocurrency.
Either it’s the dollar crisis, globally financial drawbacks, or a novel pandemic, nothing could stop bitcoin surging over its price endlessly. It was back in 2017 when the bubble exploded and bitcoin dissociated all of its power through its sky-rocketing price. The massive rise in the price of influx became the reason to make bitcoin the center of attraction in the whole cryptocurrency market.
With a progressive increase of 195% per year, bitcoin has been a huge helping hand in reducing inflation and lowering purchasing power all over the world. From the first kick start of $12,000 to today’s price valued at $33,000, this cryptocurrency is worth appreciating amidst all other financial assets.
However, the driving force behind this progressively increasing bitcoin has excited nearly every bitcoin enthusiast to know if it is a really long-lasting asset or just a trend that is not supposed to stay. Thus, here are some key factors that become the cause of bitcoin price to increase regardless of any barrier that comes in between.
Reason Behind Bitcoin price Increase
One of the major factors of high-value bitcoin is its undoubted volatility that will remain as long as the bitcoin. Regardless of this, bitcoin has been successful in gaining some high-potential
multinational companies and amazing clients who trade bitcoin regularly and play a major role in increasing its price. The irresistible demand of bitcoin and its respective supply directly impacts the emerging bitcoin price value.
When all the currencies fail, bitcoin becomes the first to rescue you. The recent US dollar decline in the foreign exchange market became a major turnover in converting people towards bitcoin and its independent nature that can never be interrupted by any third person or allows middlemen interference.
While stock trading, real estate, paper bonds seem too complicated and technical to be used as a daily currency. There, cryptocurrency perfectly fits the criteria for being the most convenient and one of the easily accessible digital currencies.
Not only while trading coins, but today bitcoin is adopted by several famous companies for every transaction throughout the world.
Owning bitcoin ultimately adds a respectable and credible image to your identity especially when it is about to aim at the wealthy investors in the market. Renowned money exchanging companies like PayPal, Galaxy, and Tesla with millions of users globally not only accepted bitcoin but also tried their luck and have announced to launch their cryptocurrency soon.
Bitcoin is today the apple of an eye for numerous traders, investors, and enthusiasts. Neither trading bitcoin calls for too many laws and regulations to be followed nor it is any ordinary server that can go anytime down. Thus, the $21 million bitcoin supply to date is still incompetent to meet the current demand of buying this volatile asset at the time of its high scarcity. This high demand low supply surges the price of bitcoin at a peak.
- Halving and Stock-to-Flow Model
Not only is this a significant reason for bitcoin’s existence but the secret formula of numerous investors to unlock the huge treasures of bitcoin. Holding the bitcoin for a long term without allowing any interference can result in flying Bitcoin’s marketplace.
With $21 million bitcoin present, it’s hard to know the odds of bitcoin success now and then. Therefore, this stock to flow model helps in only doing trading at best times, waiting for the prices to surge up, reducing its regular additional costs, and achieving daily reward if you don’t check up on your wallet again.
From Fintech Zoom to Times under 40, no one in today’s era can deny the worth of bitcoin due to its high price and making maximum profits for the long run. No matter if you’re a fresh graduate or a highly experienced business person; investing in bitcoin, trading, and achieving good successes has become comparatively easier than in the past. Join bitcoin mastery to get help in learning the technical trading aspects in a fun and easy way.