Bitcoin Reach Historical High $20000!
As the morning dew gradually fizzles away by sunrise, so has the negative tags of Bitcoin died down as the years progressed. Bitcoin was tagged to be the next big scam on the internet several years ago, however, the digital currency has not only made people multimillionaires but has become a globally accepted currency. Although not all shops use BTC as it is fondly called, people use the currency as a means of payment for products and services. Consequently, the value of Bitcoin has continued to rise throughout the years as more people are beginning to invest in cryptocurrency. Bitcoin traders make up to 350,000 transactions per day with at least 2.9 million cryptocurrency wallets available. Hence, the popularity of Bitcoin and cryptocurrency as a whole has skyrocketed. A more apt revelation of the escalation in BTC price is in its transition from its first year till now. As at 20210, the price of Bitcoin was $0.0008 to $0.08, maybe just enough to get a candy bar. In contrast, as of 2020, the price of Bitcoin has reason by a whopping +9,999,999%. Yes, you read the number correctly.
What is Bitcoin?
Bitcoin is a digital currency that relies on a decentralized system of operation called a blockchain. This system is used to record and verify transactions in a systematic order that does not allow for any alteration. This means there is a particular chain or process involved in the transaction of Bitcoin that follows an order, if the order or chain is broken there will be no transaction of Bitcoin. Hence, each block containing data is used to make the next block until one chain is complete. This ensures transparency, accountability, and most importantly security. As a result of the success of Bitcoin, which is the first cryptocurrency, there were alternate coins that have risen. However, Bitcoin still remains relevant to this day. There are exchange platforms through which Bitcoin can be transacted or traded online. These exchanges have wallets where you can store your Bitcoin whenever you want to buy more or sell to make a profit. The essence is to achieve a high level of security as the platforms guard the stored Bitcoin whenever you need them.
Bitcoin has three specific job descriptions depending on your best fit. There are Miners, traders, and investors. The miners are the people in charge of creating Bitcoin which entails a high degree of proficiency and skill, the traders are the buyers and sellers on the market while investors as the name imply invest in Bitcoin. This last set is arguably the movers and the shakers of the Bitcoin market. All these people benefit from Bitcoin but it takes strategies and consistency to navigate through the treacherous waters of cryptocurrency. Based on these facts, it is evident to see how Bitcoin has gained relevance in recent times, but nothing has amplified the increase in price at this moment we are in right now. Although had been given signs of increase as it moved, fluctuating at various prices throughout 2020. However, on December 16, 2020, Bitcoin broke through the roof reaching $20,000. One of the reasons for this surge this festive season is media outlets have begun to embrace crypto coverage. As a result of the momentum through which Bitcoin and the other altcoins are rallying with. Also, there are more buyers with deeper pockets in the market today.
What factors contributed to Bitcoin reaching $20000
Here are some of the reason why Bitcoin has scaled through new heights this season,
2020 has been a year of ups and downs for mostly everyone, businesses, employees, families, and countries. As a result of the instability of the economy in many areas, there is not a day that goes by without a company to join the elite team of cryptocurrency. Can you blame them? Certainly not. With COVID shutting a lot of business down, consequently leading to a massive rate of unemployment. Businesses around the world have begun to look for new ways to make more money for companies to stay afloat by investing in Bitcoin. The wreck on the economy has led to several companies in all continents rallying towards digital assets to help improve their revenue and the economy in general. This surge of company investment has led to more “whale” accounts this year most especially and market watchers have even predicted that by the end of 2021 Bitcoin can rise up to $300,000. Now that will be some type of season for everyone.
The Case for New Money
With the instability in different economies of the world, there has been an increased demand for new money to help improve the economy. Countries are in massive debt as a result of constant borrowing of money without much coming in. As a result, financial institutions in countries have warmed up to the prospects of Bitcoin this tear. The trading volumes have tripled this year alone, regulated markets have joined on the Bitcoin and cryptocurrency train.
The growing adoption of Bitcoin as a means of payment has caused the price to go up this season. PayPal recently announced that it would allow its users and merchants to buy and sell using Bitcoin and other cryptocurrencies. PayPal with over 300 million users, also owns Venmo which also has accessibility to cryptocurrency as well.
Scarcity of Bitcoin
There is a fixed amount of Bitcoin that will exist, making Bitcoin scarcer than any other asset before it. Another reason for the scarcity of BTC is the Halving. Bitcoin has its one screw system where inners collect BTC as a result of successful transactions, this reward is cut in half every four years. Thus, making Bitcoin scarcer as time goes by. As of November 2020, there were 18,534,818 BTC in circulation.
The fear of the economy crashing and the halving issue have made all players in the Bitcoin game nori aggressive in intensifying their actions. Now, there are more buyers and investors holding on to large shares of BTC with limited supply in the market. This is why you need strategies to navigate Cryptocurrency.
BitForex is an exchange service platform that can be classified as one of the Top 10 cryptocurrency exchange services. It is focused on providing millions of users with a digital currency trading and investment tool that is not only safe but also professional and convenient. BitForex has a high customer-oriented culture and state-of-the-art financial technology.
BitForex is programmed in a way that it can quickly adapt to the changes of the Crypto market while introducing new features like margin trading, enhanced trading charts, derivatives, and a host of others. The headquarter of BitForex is located in Hong Kong, while there are branch offices in countries like the United States, South Korea, and Singapore.