The rapid value growth is probably the foremost factor driving the adoption of any cryptocurrency. Bitcoin, in particular, has been the fastest-growing cryptocurrency over the past few years. It has become the world’s largest cryptocurrency and one of the most valuable financial instruments. Investors who bought BTC tokens in 2016 have potentially made thousands of dollars in returns. The astronomical growth in Bitcoin has become a hot topic among trade experts and almost everyone else. The value of BTC, which started at $8,000 in early 2020, has reached a whopping $30,000 as of January 2021. Barring a few minor dips, the price of Bitcoin is going up in the past year. Trade analysts are figuring out why the value of BTC keeps increasing so rapidly.
Why Does the Bitcoin Rate Keep Increasing?
The cryptocurrency market is influenced by numerous factors, both internal and external to the market. Like every other cryptocurrency, Bitcoin moves in a volatile, unpredictable fashion in the market. Several reasons can contribute to this fluctuating growth. However, it certainly appears that Bitcoin prices are more on the rise than on the fall. The bubble of Bitcoin investments is growing by the minute. In 2020, Bitcoin prices started gaining momentum during the global health crisis. With every passing month of the COVID-19 pandemic, the prices of fiat currencies spiraled in a downtrend. Simultaneously, Bitcoin prices began growing at an average 25% growth rate per month.
The shutdown of the retail industry in 2020 factored in the price surge of Bitcoin. Consumers started purchasing goods and essentials from online platforms and e-commerce websites. Several of these platforms accepted Bitcoin payments, which drove their adoption. The global unemployment rate has been high since COVID-19. Hence, people considered investing their savings for high returns. Bitcoin investments gave great returns instantly. For instance, the value of a Bitcoin tripled from June 2020 to December 2020.
Concurrently, the price of Bitcoin continues to grow up due to its limited production. As of mid-January 2021, the total Bitcoins in circulation is pegged to be 18,606,200. In every 10 minutes, one new BTC token gets circulated in the market, either through purchase or crypto mining. However, the market for Bitcoin is designed with some limitations. Over time, only 21 million BTC will be available for circulation. As this number comes closer, the demand for BTC increases. Naturally, this affects the supply and inherently leads to a Bitcoin value rise.
How Is Bitcoin’s Price Rising?
The following factors showcase how the price of Bitcoin rises in the market:
- The purchasing power is becoming low as inflation hits in the Covid-19 era, providing a major stimulus to the adoption of store-of-value assets such as Bitcoin.
- The rewarding mechanism of Bitcoin mining adds to its limited availability and improves its merit, compared to precious metals such as gold and fiat currencies such as the US Dollar.
- Institutional adoption is the main factor why Bitcoin investments are growing at a great speed.
- Investors are showing strong confidence in Bitcoin by betting big on the future of this cryptocurrency.
- The infrastructure for Bitcoin is expanding across the globe and becoming more mature for cross-vertical adoption.
The factors have a combined impact on the rising prices of BTC tokens. Changes in these conditions can favor the further growth of Bitcoin’s value.
How Fast Is Bitcoin Growing?
In 2010, Bitcoin first started at $0.0008 and reached $0.08 in the same year. Since then, the price of a single Bitcoin has soared over 1000%. The price charts reveal that BTC was worth $6,965.72 on January 3, 2020. The same charts reveal that a single BTC’s value is $30,606.18, as of January 22, 2021. According to the Bitcoin prices, the average growth rate in the value of BTC is 87.36%.
Bitcoin is an open-source invention in the financial world. It is designed to be a uniformly-valued global currency. Despite being virtual, Bitcoin prices keep growing up due to people’s growing faith in decentralized economies. Bitcoin solves the fiat currency devaluation problem, and its value is growing rapidly due to the fall of fiat money. Forex markets are witnessing a major cutback on investments. The lack of funding and no central authority to control the market is perhaps what increases Bitcoin prices. With the factors mentioned above in play, there is no stopping the growth of Bitcoin’s value in the future. Apart from that, If you want to invest in Bitcoin to make huge profit then Bitcoin Code is the perfect platform for you. It is an automated trading platform that can help you make good money from Bitcoin. You check its review or visit the official website to know more further.