Bitcoin has become one of the most popular and largest cryptocurrency by market cap worth over $1 trillion. Even though the number of investors has been consistently growing, we have seen a sharp rise in the number of Bitcoin supporters in the last year.
Bitcoin has entered a bull cycle that has attracted a lot of attention, not only by retail investors but a lot of mainstream investors are warming up to the idea that Bitcoin is the future of money. If you want to know if digital currencies like Bitcoin are a smart investment for your portfolio, this article covers important factors that made Bitcoin an attractive asset.
Bull Market Phase
This is one of the main reasons why Bitcoin is appealing to investors. Because Bitcoin is a decentralized cryptocurrency, it’s volatile, and it has had bull runs before that pushed the price to new heights. However, the last one really attracted massive attention. It started in May 2020; after the halving, then we have seen a continual rise in the price of Bitcoin. More specifically, it topped off at $9,188, while the price continues to climb throughout the summer and hit $11,657 in August.
Then it broke its first record in November with a price of $18,114. Unsurprisingly, Bitcoin’s price exceeded $20,000 in December. This was an increase of 224% from the beginning of 2020. In 2021, in less than a month, the price doubled to $40,000, while it surpassed $50,000 in February.
The bull cycle doesn’t show any signs of slowing down, with the price of Bitcoin breaking $60,000 in March.
Accessibility
Actually, today is very easy to get BTC because there is a plethora of online trading sites where you can invest in Bitcoin. One great site for newbie investors is Bitcoin Prime. The platform is powered by subsets of AI – Machine Learning, Natural Language Processing, and Deep Learning, which conduct in-depth technical and fundamental analysis, while the software quickly adapts to the changing market data. Moreover, another evidence that this is a great platform is the Top Bitcoin Robot 2020 award by InsideBitcoin, among many other awards.
Institutional Support
Bitcoin isn’t controlled by a separate institution when it comes to its supply or demand, and anything else actually that is associated with Bitcoin isn’t under the control of a third entity. This means that the supply is regulated by protocols of the blockchain network. To be more precise, Bitcoin halving is an event that is programmed to happen according to the Bitcoin protocol whenever 210,000 BTC are minded.
This event cuts the inflation rate in half, along with the block reward of the miners. This means that the available supply is minimized after each halving because it’s getting more expensive for miners to keep mining, at least as solo miners.
Otherwise, the market is quite small, and certain events like Bitcoin halving, greater institutional demand, and speculations in the media, impact the price of Bitcoin.
More specifically, the institutional interest by crypto trust funds and companies like Tesla, Square, MasterCard, MicroStrategy, Mellon Financial Corporation, and many others have also triggered an increase in the price of Bitcoin because they have impacted the demand for BTC. So actually, the price is not only growing because the supply is scarce but because there is a great number of institutional investors that are buying BTC.
