The cryptocurrency market is a book despite the covid-19 pandemic causing havoc on economies of all countries. Because of the increasing demand for cryptocurrencies, many people have even started crypto startups, which is done to fulfill the increasing demand of all cryptocurrencies, especially Bitcoin. Bitcoin’s growth has helped the crypto market cross the market of $1 trillion currently, and out of this market value, bitcoin is responsible for around 69% of total market capitalization.
The heights that bitcoin has attained are shocking and interesting as six months ago, bitcoin’s price was around 6 00,000 INR, whereas today, bitcoin is traded for more than 35, 00,000 INR, which means there is around 700% increase in its price. After bitcoin, Ether is considered the second largest cryptocurrency if we consider the market capitalization. After Ether, many other cryptocurrencies are getting popular, like Litecoin, Dogecoin, and more. There’s a sudden increase in the price of few cryptocurrencies, and the investors aren’t able to guess what’s happening and why there is so much increase in price. Not only cryptocurrencies can make you earn profits but you can also trade oil through bitcoin x and can earn huge profits.
Few reasons led to the increase in the price of cryptocurrencies that we will read here. Also, we will look at the current news and stories about bitcoin across the world and learn what is happening in the world.
What led to the rise in the price of Bitcoin?
Digital payment companies
In the year 2020, digital payment companies like PayPal and more announced that they would start launching, buying, and selling cryptocurrencies on their platform. The company has launched around four traded majorly, including Litecoin, Bitcoin Cash, Bitcoin, and Ethereum. Even the company has announced multiple plans to make people allow crypto transactions. There are around 350 million users of PayPal that are now starting to adopt cryptocurrencies as a form of payment. Along with it, 30 million merchants have also started accepting crypto payments.
Institutional adoption
Popular cryptocurrencies like bitcoin and Ethereum are known as safe-haven assets that hedge against inflation and market volatility. Due to the current social and economic climate, people are using digital currencies to hedge against a volatile market. Also, there is a current trend amongst public companies that are converting their treasuries into popular cryptocurrencies. Some of these public companies include Microstrategy, Square, and bitcoin, which also serves as a great store of value.
More accessibility
Cryptocurrencies have a volatile market and are scarce, making them the great medium of exchange and s store of value. While bitcoin has entered the mainstream and is also considered a legitimate payment method across some countries, bitcoin has established itself as an asset class in the past decade. People prefer to use bitcoin and convert it into fiat currencies because of its volatile market and deflationary nature. The deflationary nature of bitcoin makes bitcoin a great hedge against inflation and a good and stable store of value. Especially if we talk about India, the Reserve Bank of India has banned the use of cryptocurrencies. Still, it was later lifted, which made investors attracted towards it. Cryptocurrencies have become highly accessible to the general public, and individuals and retail investors are coming forward to invest in bitcoin. Bitcoin has become an asset class, and therefore people are willing to pay more for its value.
Current news and stories of Bitcoin
- Bitcoin is the world’s largest cryptocurrency, and its value has increased to 6.54% and has reached $57,098.
- Recently, bitcoin’s price has touched around $64,000, and traders are highly attracted to investing in bitcoin.
- Currently, Tesla has sold bitcoin to prove its liquidity as an alternative to cash. The earnings report of Tesla shows that Tesla has generated around $101 million as their income from sales.
- Cryptocurrencies are based on blockchain technology. It involves using thousands of specialized computers, which states that cryptocurrencies use lots of energy required to solve highly complicated equations.
- Crypto banks have been developed, which also allow its users to get loans on their cryptocurrency holdings.
- Nexon has become another big company that invested $100 to buy bitcoins.
- Banning bitcoin in India would be a terrible idea. Blockchain network has helped companies save billions while making transactions.