Bitcoins, a form of cryptocurrency has witnessed a parabolic increase in value in recent times. There are many factors contributing to this phenomenon but some of the major few can be:
- Finite supply
- The halvening
- Institutional Investors
Why is it rising?
To make it simpler to understand why bitcoin price is rising dramatically we first need to illustrate how it all works. Bitcoin, unlike the usual currency, is limited in supply. You cannot just mint more bitcoins (BTC) to keep up the supply. Currently, it is known that there will only be 21 million Bitcoins and no more. This finite supply makes it more demanding and popular.
Another part that should be mentioned here, is its secure channels. Although currencies always are treated with top-notch security but cryptocurrency is a whole new league.The level of sophistication and online presence makes it tough to steal as well as misplaced.
Popularity of BTC
Though, the tricky part lies in its popularity which is still relatively low than the traditional money (bonds, currency, etc.). Big institutional corporations like Facebook and JP Morgan have been confirmed to have invested in acquiring bitcoin reserves of their own. It would still be too early to state that the same is a preferable option for the common people. One of the reasons behind hesitance could be the fear of the unknown.
Just like what happened at the time of social media’s advent, people who were adamantly against it are now the ones advocating for it, it is possible and quite promising for bitcoin to see a similar surge.