The market of cryptocurrency is experiencing a boom even on global pandemic days. There has been an increased demand for cryptocurrencies like Bitcoins. Bitcoin’s market capitalization growth has recently crossed the $ 1 trillion mark. It is responsible for nearly 69% of the total market value. Six months ago, the price of one Bitcoin was estimated at 6,00,000 and today there is a hike of nearly 400% in the price, evaluated to 25,00,000. Here is a list of five reasons why there is a constant rise in bitcoin price.
Let us know more about the five reasons behind the rise in bitcoin prices.
Institutional Adoption
Cryptocurrencies like Bitcoin are considered to be safe for transactions. Looking at the present scenario of the world, people are trying to keep less cash with themselves. It is also seen that some public companies are also converting their cash into cryptocurrencies leading to hikes in their price. However, the new traders to the crypto world can begin their experience by trading through the Bitcoin Profit Builder application.
PayPal And Cryptocurrencies
Recently PayPal has also introduced a transaction feature of cryptocurrencies like Bitcoin through their platform. It has nearly $350 million users who can now transact Bitcoins through this digital wallet. Moreover, they can even receive their payment in cryptocurrency mode. Venmo is also a platform that allows users to make payments and receive their payments in the form of cryptocurrency.
Halving Driven Scarcity
The supply of Bitcoin is quite limited, and it is not a rumor but a truth that prevails. The halving of Bitcoin happens every four years in the Bitcoin network. After the miners mine every 2,10,000 blocks, the Bitcoins are roughly halved. This reduction in the reward of Bitcoin by 50% every four years is considered to be Bitcoin Halving.
Easy Accessibility To The Public
Cryptocurrencies like Bitcoins can be used both for storing value and as a mode of exchange. Even the people who are not interested in making payments through Bitcoins are seen to convert their cash into this cryptocurrency as they feel that it’s deflationary nature shall act as a hedge against inflation. Furthermore, upgraded software like the Bitcoin Profit Builder application makes it easy for both seasoned and novice traders to trade hassle-free without worrying about safety and security.
Holding Of Bitcoins
Many Bitcoin investors channel their Bitcoin flow to certain private investment funds. This leads to an apparent shortage in the supply of Bitcoins in the market. This ultimately prompts a dramatic rise in the price of Bitcoins throughout the crypto market.
The Bottom Line
The ability of people to freely trade cryptocurrencies like Bitcoins has led to the potentiality of these currencies to rise in terms of their value in the ecosystem of trading. Moreover, with the facility of applications like Bitcoin Profit Builder, when Bitcoin trading has become so simple and easy, it grabs the attention of many investors and traders to get involved in trading Bitcoins.