Bitcoin has been around for less than two decades. However, it has grown more in value than assets that have been around for centuries, such as gold. At its launch in 2009, the value was next to nothing, but over the years, the growth has been rapid.
Bitcoin hit an all-time high of over $60,000 in November 2021, a feat many did not anticipate. As a result of its resounding success, regulators have been attracted to the industry with a mix of jealousy and fear.
It is for this reason that many countries are seeking to build central bank digital currencies to compete with the asset. This is because they see Bitcoin having a brighter future if they allow it to move at the current pace.
Regulators have also cracked down on the asset in several jurisdictions, with the intention to discourage its use. In fact, many countries have placed a “ban” on the top crypto asset, but this hasn’t worked well. Many of such countries have seen an increase in the number of Bitcoin users after such ban pronouncements.
Again, there have been several predictions that bitcoin will die or go to zero. This has been repeated whenever the asset entered a bear cycle, but has not become true. Some say it has no intrinsic value, but time has proven otherwise.
CypherMindHQ.com Artificial Intelligence Crypto Trading System - Stay on top of the competition using the advanced CypherMindHQ AI system! Leverage the capabilities of high-tech algorithms and take your cryptocurrency trading to the next level. Learn more today!
With the current trends, Bitcoin seems to be getting set for higher price explorations in spite of the challenges it is facing from those in power. If you’re like most people, you may be wondering why this is the case. Well, here are three reasons why Bitcoin isn’t dead and keeps increasing in value.
High Demand
Bitcoin is in high demand among investors across the world. Like any other thing of value, the high demand is what is driving its rising value. Before now, many people didn’t take it seriously but over the years, it has become noticeable because of the rapidly increasing value.
So many institutional investors now want Bitcoin, something that was unlikely a few years ago. On top of that, investors with large amounts of Bitcoin held, also known as whales, are not willing to sell their stash, further shrinking the supply and increasing the value per coin. With such high demand, it’s easy to see why the value of this asset is skyrocketing
Limited Supply
Scarcity is built into the Bitcoin network. How? Limited supply. There can only be 21 million Bitcoins mined. This means there is a limited supply and the world has to compete for the 21 million of them; this is not the case with other assets such as gold, which has an infinite supply.
Out of the 21 million Bitcoins, at least 20 million have already been mined, leaving roughly a million. Thousands of them have been lost as well in several wallets that cannot be recovered, further reducing the supply.
CypherMindHQ.com Artificial Intelligence Crypto Trading System - Surpass the competition with the refined CypherMindHQ AI system! Take advantage of groundbreaking algorithms to amplify your cryptocurrency trading prowess. Learn more today!
With such increasing scarcity, Bitcoin is likely to keep increasing in value of course, even though the price keeps going up and down. There are predictions that it could hit $1 million in a few years, based on this reason.
It Serves as a Hedge
You may be wondering why Bitcoin is in such high demand. One of the reasons is that it is a hedge against inflation. Inflation has ravaged several currencies around the world, including the U.S. Dollar. As a result, people are looking for a way out, and anything that can save their money is a great solution.
Bitcoin has proven over the years that it is an effective hedge against inflation by its steadily increasing value, which attracts more people seeking a hedge. It is an unending cycle that keeps pushing its value up and this is not about to stop as inflation is worsening. These are just a few reasons why Boitcoin’s value keeps growing and is unlikely to stop.
Disclaimer: Avantage Cryptocurrency is not liable for any financial losses arising from the information available on our website. Read our disclaimer to learn more. The views and ropinions shared on our blog represent the perspectives of the individual authors only. Engaging in crypto trading carries inherent risks and might not be appropriate for every investor. Before delving into online trading, visitors should verify the legal status of such activities within their local jurisdiction. All logos, images, and trademarks showcased on this website are the property of their respective owners, used in accordance with the Fair Use act. Some of the posts (not all) on this site such as posts in the Avantage Cable category are promotional paid posts not written by our authors.
Leave a comment