Investors are highly interested in crypto. Cryptocurrencies are considered to be the digital assets that performed the best in 2021. They are the next promising thing in the world of finance.
One such cryptocurrency is Bitcoin that was traded first in 2009. It has been creating headlines starting from the future analysis of digital currency to individuals who focus on its huge electric power needs and volatility. And if you are wondering what is the difference between coin and token, then read the article.
Last year was the record-breaking year for this digital currency breaking all its past all-time highs and including almost $545 billion to the market capitalization.
Cryptocurrency assets have been reaching new highs in the market price. $3 trillion was the overall cryptocurrency market capitalization after in January it re-crossed $1 trillion and in May $2 trillion.
Companies worldwide relied on Bitcoin
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- Tesla declared an investment of $1.5 billion in Bitcoin.
- After this many financial service companies like Mastercard announced their intent to validate digital assets.
- 2021’s first half saw various companies start initial purchases of Bitcoin.
- Mastercard added it to their company reserves.
- In 2021 many popular companies bought Bitcoin such as Square allocated 5 % of their assets roughly to Bitcoin.
- Substack, WeWork, and AXA started to accept Bitcoin payments.
Large investors gave Bitcoin the highest attention
- In the community of investment, cryptocurrency is seen to expand hugely as an accepted asset.
- A huge urge has been witnessed from not only individuals but also institutional investors for cryptocurrency investments.
- Such interest will keep on increasing.
- Main banking institutions along with technology companies like Barclays and Intel started to invest their money in Bitcoin.
- This caused countries having weakening currencies to start adopting this digital currency in place of the conventional currencies that depreciated.
- Brazil, Turkey, and Colombia are among the early Bitcoin adopters.
- Few wealthy countries have started to explore Bitcoin acceptance as a legal tender.
- Some central banks of the European Union have been conducting some trials and research projects on this digital currency.
Bitcoin comes with simplicity, relative stability, and acceptance
- Bitcoin is one such decentralized currency that is not under the control of the Federal Reserve or other central banks.
- It has a predefined highest supply and people globally can relate to it.
- The high opinions of this concept regarding Bitcoin have been tested thoroughly and well-validated too.
- It may be volatile but it is known to be the most stable crypto that has been highly consistent and performing best every year.
- Bitcoin has been hugely evading all U.S regulations or law enforcement even being under enhanced scrutiny because it allures institutional investors.
- One can legally buy or sell Bitcoin.
- All transaction that involves Bitcoin is properly tracked on its blockchain.
- It has a record of each transaction made with Bitcoin.
- The blockchain of Bitcoin is well distributed across their entire network.
- Anyone can easily become a part of this network.
Performance of Bitcoin
- If in 2010 an investor put $100 in Bitcoin it will be closely priced to $9000000 now.
- It is a huge return that they will get.
- People with the foresight, opportunity, and means of investing in Bitcoin during that time are seeing great results now.
- Three major factors influence the price of Bitcoin.
- The agitation of media over Bitcoin’s increase in value is attracting new buyers who are in search of making money.
- A lot of conventional finance firms have started to invest in this crypto market.
- The comparison between gold and Bitcoin fits the trends in the economy globally.
- Many investors view it as a value store like gold that is capable of holding its worth during economic stress or any rising inflation.
Conclusion
From the time of the creation of Bitcoin, many new crypto are launched. However, Bitcoin is still the largest one by trading volume and market capitalization. One can send Bitcoin anywhere in the world and no fee is charged for accessing the money. It comes without any limits.
While making Bitcoin payments neither bank statements nor are personal information needed. The network of Bitcoin is cryptographic and hence their payments are more secure fundamentally compared to standard credit or debit card transactions. Bitcoin payment lowers the risk of any financial data being compromised and stealing your identity.
