One of the most popular cryptocurrencies of today’s time is Bitcoin. Earlier when bitcoin was launched, its value was nearly negligible but over time, its value has reached new heights. The bitcoin network has attained unexpected popularity and people across the world are accepting bitcoins as a new payment method. The crypto analysts believed in bitcoin that it will be the currency of future and in today’s time the value of bitcoin is around $34,000. There have been many debates and controversies going on in financial market between the bulls and bears of bitcoin.
The bulls of bitcoin predict that it has become a valuable asset that is being accepted and the bears of bitcoin always tell about the volatile market of bitcoin. One major feature of bitcoin is its volatile market and many people have suffered huge losses from its volatility. Are you confused about the controversies that are being made on growth and future of bitcoin? Do you know why the value of digital currencies is increasing rapidly? If you are unaware about the bitcoin trading, you can learn about trading with bitcoin superstar by visiting pattern-trader.app.
In this article, we will learn about the reasons about popularity of bitcoin.
Popularity of bitcoin during covid-19 pandemic
Bitcoin market is highly volatile and its value keeps on fluctuating on regular basis. In 2018, there was a huge down in bitcoin value and in 2020, it started picking up the value and the lockdown that was implemented across the world has been the great year for bitcoin. Due to covid-19 pandemic, strict lockdowns were imposed across the world and the lockdown has devastated the economy of the world. The lockdown had a negative impact on world’s economy and all kinds of assets and investments.
Among investors there was fear regarding their investments and assets but big investors and companies started investing in digital currency and this has became a great lockdown for bitcoin investors. Now the crypto analyst are saying that the global investment portfolios are holding the digital currencies which has became a great alternative currency or asset as compared to traditional ones.
Has bitcoin become an alternative asset in covid-19 pandemic?
During the pandemic, the investors rushed to secure their investments like gold and other currencies. The investors have gained funds who dare to risk their money in digital currencies like bitcoin because bitcoin has rewarded its investors. It has provided great rewards to investors that not even gold investors have got. Bitcoin has provided four times higher returns on investments to its investors. This has attracted the investors across the world and they have started actively investing in digital currencies.
Another biggest factor behind popularity of bitcoin is its limited supply. There is a craze among people about investing or holding bitcoin because its supply is finite. There are only 21 million bitcoins that are created and out of which around 18.5 million bitcoins are in circulation. Bitcoin is a computer code and its supply cannot be extended. Because it has a finite supply, it value with never get affected by covid-19 pandemic unlike traditional currencies. Bitcoin has wild fluctuations but still 2020 is the year in which its value has rose and it has experienced less volatility this year.
Despite of covid-19 pandemic, even if you put highlight on features and benefits of bitcoin, it makes the best cryptocurrency. The invention of bitcoin has encouraged developers across the world and this has led to invention of more and more cryptocurrencies. Some investors might disagree with the fact that bitcoin is the currency of future because they have fear of volatile market that has made many investors loss their money.
In 2017, value of bitcoin crash and people has faced huge losses. There has been debate going on about future of bitcoin and it will keep on going and only time will explain is cryptocurrency like bitcoin will become more acceptable or not. The market capitalization of bitcoin has decreased in 2017 but it continues to grow after 2017. People across the world are accepting cryptocurrencies and because of perks of bitcoin they want their business to expand.