4 Key Reasons Why Bitcoin Prices Have Recently Ralled
Whether you like it or not, digital currencies have managed to survive. Many people were skeptical and they believed that Bitcoin and other altcoins are only a scam. However, today, the number of people that are willing to invest is rapidly growing. That is probably the reason why many beginners are trying to save enough money to invest.
However, becoming a successful crypto investor is not an easy task. Many people want to try out gambling strategies to earn some money in the crypto world. In other words, they believe that a lot of money and luck are the only factors that will influence their success. Instead of that, people should work on their knowledge improvement and try to become successful in that way. They can also take advantage of technology and use different apps that will send them the latest insights, alerts, and changes that will notify them about the right moment to sell or buy BTC. If that seems legit to you, we recommend you visit this site and check out how these software solutions function.
Anyway, as you probably know, Bitcoin’s price is going up since the beginning of this year. It broke up all possible records and there are big chances the same trend will continue in the future. However, that doesn’t mean you should invest just because of that trend. You need to understand the key reasons why Bitcoin prices have recently rallied.
The good news for you is that you have come to your place to find out that. A list of key reasons why help you understand how things in this world function. Despite that, you will also understand why exactly the same trend will probably continue in the future. Because of that, let’s find out those factors/reasons together and make things easier for you.
1. US Dollar Is Responsible
There are many differences between cryptocurrencies and the traditional ones we have been using for many years. However, that doesn’t mean they do not have anything in common. The value of the US dollar has gone down during the pandemic. More precisely, its purchasing power and the rise in inflation scared many people.
Investors started to look for a more suitable way to keep their earning and potentially make a profit. As you probably know, neither of the digital currencies depends on changes in the world (like the pandemic). Because of that, it looks like the safest alternative for people. When the demand for Bitcoin went up, its value automatically jumped, and the same trend has continued until today.
2. More Companies Are Accepting It
Well, there is a big chance you have purchased many things in the past online. That especially counts in the moment when millions of people had to face lockdown. Many online stores have improved their incomes and took the advantage of that opportunity. Yet, did they stop there? Not at all; they decided to follow the latest trends in the financial world as well.
Because of that, you will manage to see many of them started to accept crypto-based payments. Thanks to that opportunity, many Bitcoin owners started to use it for everyday purchases. Logically, that is another way factor that influenced its demand (and price automatically).
Still, that is not the only way how companies started to accept crypto-based payments. Many of them will also offer their employees salaries in the form of Bitcoins. Of course, this is still not popular, but there is a big chance something like that will change. It is usually characteristical for entrepreneurs who believe new payment methods will replace traditional money soon. However, no one can guarantee something like that will happen. Despite that, that was not the point of digital currencies.
3. Have You Ever Heard about Stock-To-Flow Model and Halving?
These two models are probably the main reason why the price of Bitcoin has rallied recently. The first one refers to the number of Bitcoins that will exist in the world. Believe it or not, there will never be more than 21 million. That is the maximal number, and there is no chance something like that will change. It is a number that will remain static forever.
This feature makes Bitcoin a safe option and investors will not need to be afraid of inflation. Remember what we said about the US dollar? Well, you probably now understand why they decided on investing in BTC.
On the other hand, halving is actually a process that is coded into BTC. Believe it or not, Bitcoin has a built-in escrow mechanism. Whenever people that are responsible for mining the most popular crypto get a reward, they actually get that escrow.
To conclude, both of these options are protecting BTC from any type of inflation. Currently, there are more than 18.5 million Bitcoins are circulating in the crypto world. So, you can grab a chance to buy the remaining ones, or you will have to buy them from other people later.
4. Investors Are Following Big Companies
We all have some kind of role model that we follow, don’t we? Well, most of the small investors are following the moves of some big companies. Big companies always invest their money somewhere, but for a long time, cryptocurrencies were not on that list. However, things have changed, and many big companies are not buying Bitcoins. Just like experienced investors, they are trying to find a safe place for their money.
A good example of that is probably Elon Musk. A few months ago, he shared a tweet “Bitcoin is my safe word”. Do you know how many people are actively following his work? That one twitt was a sign for many people it is the right moment to invest in Bitcoin. Logically, that automatically improved the price of BTC.
Don’t feel bad if you can’t afford to invest in Bitcoin now. You will need to invest more than 50000 dollars to purchase one BTC. However, many other altcoins can be an excellent option for complete beginners as well. On the other hand, if you are ready to invest, it would be good to take advantage of programs like the one we suggested above. You will get notifications that will help you understand how the entire system functions.