The very popular digital currency, bitcoin, is popular because of its volatile market. Despite its volatile market, it has bounced back sturdily during the hard times of the covid-19 pandemic in 2020. In 2018, bitcoin’s value crashed, and people who lost their money lost trust in investing in bitcoin, but in mid-march of 2020, bitcoin’s value surged around 800%, which is quite appalling and incredible. From mid-march, the value of bitcoin is touching new heights each passing day and getting highly popular across the world. Many investors worldwide are betting on this digital currency expecting it to be equivalent to gold and become a mainstream crypto asset.
Recently, in 2021 bitcoin’s value exploded and made huge growth as from $34,000 it reached $55,000. Crypto experts say that its growth is unbelievable, and they expect it to reach $75000 by the end of 2021. But as its price continues to rise, there have been many debates going around in the crypto space between bitcoin bears and bulls. Bitcoin bears remind everyone about the volatility of bitcoin and its price history, whereas bitcoin bulls are making sure that bitcoin will become a mainstream asset. Download the app to Predict bitcoin price and earn a great sum of money to change your life.
As there have many controversies going around in the crypto space about the value of bitcoin that is increasing rapidly, we are introducing some possible reasons that you can explore.
After suffering a crash in 2018, the popularity and price of bitcoin started to increase in 2020 when people didn’t find a good interest rate on other investments due to lockdown. IMF has declared 2020 as the great year of “Great Lockdown.” During the lockdown in 2020, due to the covid-19 pandemic, decrepit economies of all the countries as the whole world suffered from it. The rampage of covid-19 worsens the situation, and the government was forced to impose strict regulations and lockdown.
Because of the lockdown, the world’s economy has faced many devastating consequences, and people didn’t have good interests in their assets and investments. This grew fear among potential investors, and they created an environment for the revitalization of Bitcoin. At that time, bitcoin was written off by all crypto experts, and they thought its price would never increase in the future, which took a U-turn. The companies and investors invested all their funds in popular digital currencies like Bitcoin and Ethereum.
Today, crypto experts compare bitcoin to gold and say that it does make the best investment opportunity.
Alternative asset or investment during a pandemic
When the lockdown was announced, all investors rush to secure their hard-earned money in assets like gold, while some investors considered betting on the comeback of crypto asset, Bitcoin. However, investors invested in both gold and bitcoin, but investors who put their money at risk by investing in bitcoin have gained handsome rewards.
The growth of bitcoin was ten times higher than gold. Today, many investors worldwide are considering making investments in bitcoin instead of gold to get higher returns on their investments. But one thing that every investor needs to see is about market capitalization and growth of bitcoin as such development of bitcoin is likely to take place after quite a long period.
The finite supply of Bitcoin is one of the main reasons behind its craze in the market. People are considering it equivalent to gold or only a limited asset. The supply of bitcoin is finite to 21 million bitcoins, and around 19 million bitcoins have been mined already and are in circulation, and the rest are yet to be discovered or mined.
Unlike traditional currencies or assets, no one can control the supply of bitcoin or can increase it. It will remain constant forever. No inflation period or situation will ever occur in the history of bitcoin because of its limited supply that has never-ending demand. Even after wild fluctuations, its price tended to increase in 2020, which is even continued in 2021.
Will there be another bubble?
Crypto experts are sure that there will be another bubble that will rise in the price of this digital currency, but bitcoin investors do not believe it. The debate on the price of bitcoin will continue in the future, but it has become a valuable and acceptable asset.