Bitcoin is experiencing favorable trades from the East. And it’s no doubt that these winds are pushing its price to new highs. But, several factors are responsible for the continuously increasing Bitcoin price. Here are the top reasons for Bitcoin’s impressive performance.
Predictability
As of 2015, Bitcoin was a top-performing digital currency. Its price was up over 50% against the United States dollar as of 2016. And this performance left traditional investors thinking and scratching their heads.
Bitcoin’s certainty is among its essential features. In addition to having a limit of 21 million tokens in total supply that the world can have, Bitcoin provides block rewards. Thus, Bitcoin’s creation rate continues to reduce by half.
Presumably, this will keep Bitcoin’s price rising as people want to take advantage of its limited supply. Don’t forget that the uncapped nature of fiat currency is responsible for financial issues like inflation. And this explains why these currencies have failed consumers.
Bitcoin is “Hot” Money in Some Places
It’s no doubt that Bitcoin is “hot” money in countries with economic problems. For instance, China has recently experienced a private investment slowdown. Shanghai shares have experienced a 3.2% decline. European businesses have also expressed a growing pessimism about China business.
At almost the same time, the country has what most people call “hot” money. Consequently, some people have turned to Bitcoin as it seems stable than their fiat currency. The limited production of Bitcoin generates market reactions, seen in its price variation. The stock market in China crashed back in April. Bonds and features didn’t also perform very well. And this prompted investors to find other investments like Bitcoin. To them, this virtual currency is an alternative investment.
Bitcoin is Gaining Legitimacy
The regulatory landscape is becoming more apparent. And this is improving security and investors’ confidence. Platforms like https://bitqt-app.com, where people buy and sell Bitcoin, are gaining popularity. People are using them as trading and investing systems that allow them to use Bitcoin. And people are developing strong trust in them because they meet specific regulatory requirements.
Consequently, Bitcoin interest seems to increase as people’s perception of the cryptocurrency as the money people use to engage in dirty deals changes. What’s more, people slowly understand the blockchain technology behind Bitcoin. Thus, realizing the superiority of blockchain is prompting more people to invest in Bitcoin.
The increasing Bitcoin price is also capturing the attention of investors and drawing it away from traditional assets. Essentially, Bitcoin’s growing value is making it hard for investors to ignore.
Bitcoin is a New Value Storage
Bitcoin provides unprecedented security and mobility of funds to the users. Moving around the globe with gold or money is costly, inconvenient, and slow in the current financial systems. That’s because of capital controls and friction.
On the other hand, Bitcoin is different. Whether you want to transfer a million dollars or a few pennies, you will incur a minimal fee. What’s more, accessing your funds at any time and from any location is easy. Bitcoin is new value storage that wealthy people use to keep capital and move it conveniently.
Unlike traditional money and gold, Bitcoin allows you to secure funds without a vault. Authorities can confiscate or hack your bank account, cash, or gold even without doing something wrong. However, you control your Bitcoin using secret passcodes.
Final Thoughts
Bitcoin has unique properties that enable it to outperform other assets or investments. The increasing acceptance and adoption are primarily the reason for its rising price. That’s because everybody wants to own some Bitcoin tokens. What’s more, its limited supply means its demand will eventually exceed the available amount. Thus, everybody wants to own Bitcoin now before it hits the limit of 21 million tokens.
