The most popular cryptocurrency, Bitcoin (BTC), reached an all time high last year. Recent news indicated an 300-305% increase of Bitcoin over the past year. With an increase of 77% in the past month, the cryptocurrency is still traded at a value close to its all-time high. Valued around US $34.000 at this moment, we can say that Bitcoin often surprised both skeptics and enthusiasts.
Bitcoin’s bull run is not a new thing. The surpassing of December 2017’s record value was anticipated by some investors. The digital currency definitely had some quick-moving peaks from the beginning. The magnitude of this one definitely was a surprise. However, there are factors that brought Bitcoin where it is right now and they are simple.
The market value of Bitcoin just reached US $700 billion, pushing the value of the entire crypto market over the $1 trillion threshold.
In the beginning in 2009, Bitcoin looked a little as a ‘cyberpunk’ fantasy theory. Seen as a scam by many, and starting with almost zero value, Bitcoin marched in big jump to this historic moment. A lot of alternative crypto currencies rose to fame because of Bitcoin. Its popularity came mainly from the decentralized blockchain technology. Having a peer-to-peer network, unregulated by any bank is definitely worth a little curiosity.
Because this general rule of crypto currencies, and the hope of a new rising digital asset, the digital assets market rose to fame. However, the next best crypto, the Ethereum is truly far from surpassing Bitcoin, even coming close to it.
In conclusion, the Bitcoin won’t be topped too soon.
How did it get here?
2020 is not a moment in our lives we’ll get over easily. All these crises generated by the COVID pandemic really shook all financial markets. All these crisis led to United States injecting money in the economy.
Out of fear that the US dollar’s buying power will take a dive, make people looked forward to securing their assets in different store-of-value assets.
When thinking of Bitcoin we can definitely describe it as a ‘digital gold’. Not centralized, limited total amount and being mined. It definitely reminds us a the true gold. Even the idea of minimizing the amount of coins given to miners over time to mimic the idea of wasting a natural deposit is a brilliant association.
When faced with the possibility of inflation due to the Covid relief policies, a lot of people converted their money to Bitcoin. As the US dollar was depreciating, the Bitcoin was the hottest thing again.
When you add the recent political events, turmoil at the white house and even more financial injections to come, people definitely jumped to secure their assets. And the pandemic it’s not even close to finish.
As the digital payment methods such as PayPal became more and more accessible, more investors started taking Bitcoin into consideration, it definitely made people start trust it more.
Will this trend fall or start rising? Time will tell. Some minds say the Bitcoin’s value will grow exponentially over the years. When looking back we can even predict a crushing downfall somewhere along the line.
We can definitely see digital currencies becoming the norm in the future. Until then, we just have to wait and see.