Why is bitcoin exploding in value?
The value of bitcoin has rapidly increased. Take a glance look at the previous data of bitcoin price from 2013 to 2021 (Now). In 2013, the price of bitcoin was $13, $770.44 in 2014, $313 in 2015, $434 in 2016, $997 in 2017, $13,412 in 2018, $3,869 in 2019, $7,188 in 2020. And the current price of bitcoin at the time of writing this article is $43,514, which is too high compared to the last year. As you see, the price of bitcoin was meager in the initial stage, and after a decade, the price of bitcoin is exceptionally high, but how the price of bitcoin has increased at this level. So, in this article, we will answer the question of why bitcoin is exploding in value? So, without wasting time, let’s understand the fundamental fact that the price of bitcoin is exploding.
- First Cryptocurrency: – Bitcoin was developed in 2008, and it was the first cryptocurrency created by Satoshi Nakamoto. Satoshi Nakamoto knows the everyday problems of an ordinary person, so he created this Currency to solve all the problems. Because it was the first cryptocurrency, and people trust it more because it was the first cryptocurrency. The more the uses, the more will be the value.
- Global Currency: – Before the bitcoin invention, people use fiat currency that has many problems. Fiat currency is a domestic currency that we can use only in our country, and if we want to transfer it outside of the country, we have to rely upon many terms and conditions. Banks and other third parties charge a high amount of money to transfer the money from one country to another, and it is not affordable for an ordinary person. It is also a currency, but it is a separate currency that any person or organization cannot control. You can accept and send bitcoin worldwide with simple steps without the involvement of any third person. So, the features of global Currency make it more popular.
- Most secure Currency: – Bitcoin is the world’s most secure digital currency because it is decentralized. Decentralization means there is no control over it, i.e., and no one can control bitcoin like the Government, banks, financial institutions, the President, even the founder of Bitcoin Satoshi Nakamoto. Many nodes or computers are working behind it, and it is unstoppable. Government can stop the people working behind the nodes only up to their country, but they cannot stop the other people working worldwide. So, it is impossible to stop bitcoin. If you want to hack bitcoin, then you have to hack all the computers working behind bitcoin. So, it is the most secure cryptocurrency that increases the value of bitcoin.
- Limited in supply: – There are only 21 million bitcoins on the network. 21 million is very minor as compared to other cryptocurrencies in the market. However, the popularity of bitcoin forces people to buy bitcoin (visit Pattern Trader Official Site to know more). The supply of bitcoin is limited to up to 21 million, and the price of bitcoin is increasing. If the demand for bitcoin will increase, then bitcoin’s value will increase at a high rate. Remember the rule of economics if the supply will be limited and demand will be high, then the price or value will increase.
- Benefits to merchants: – There are more than 1,60,000 vendors using bitcoin as a payment method, and there are many buyers using bitcoin to buy goods and services online. Increasing the number of bitcoin merchants and buyers makes it more and more popular and increases the usages of bitcoin pump the price of this digital gold.
- Value creation: – The price will rise if the thing contributes or provides value to its users. If you are using a product that is not creating any value, will you use that product again? Never! So, it is the same in the case of bitcoin. Bitcoin is providing high value to its users. Bitcoin has many benefits; you can quickly transfer the coins worldwide, the most secure coins globally, high demand, decentralized system, no tax, and many more features that make it valuable.
- Users: – There are a lot of bitcoin users that use bitcoin for online shopping. Some people use bitcoin for trading and investing. Some people use bitcoin for accepting bitcoin payments, such as vendors or people in business, or companies. There are millions of bitcoin users, and the supply of bitcoin is 21 million. So, the supply is limited, and many users pump the price of bitcoin.