· The market has witnessed a great increase in the value of BTC in the recent months, which can be seen from an all-time high of $50,000 which BTC has surpassed a few days ago.
· Some optimistic market analysts are quite optimistic about BTC and co-founder and partner at Morgan Creek Digital Assets, Anthony Pompliano, has gone as far to state that BTC might even reach the levels of half a million U.S Dollars per coin towards the end of this decade. These bullish experts see BTC going towards even $1 million per coin eventually.
The market is witnessing BTC approaching a $1 trillion market cap in the near future. This has greatly boosted the investor’s and trader’s expectations and reliance in bitcoin as an investment and trading tool. Market analysts have started to suggest that BTC prices will rise exponentially and eventually touch the levels of $1 million per coin, making it a global reserve company due to its wide acceptance and circulation.
However, despite this positive performance, there are people who are still skeptical about crypto in general, and BTC in specific, and continue to warn people about the risks of crypto. Some optimistic market analysts are quite optimistic about BTC and co-founder and partner at Morgan Creek Digital Assets, Anthony Pompliano, has gone as far to state that BTC might even reach the levels of half a million U.S Dollars per coin towards the end of this decade. These bullish experts see BTC going towards even $1 million per coin eventually. Mr. Pompliano while talking to CNBC said that as the leading cryptocurrency of the world has been performing since the last decade, most importantly in the recent few years, it looks quite possible that it will soon become a global reserve currency. Not just that, but he also indicated that the market cap of BTC has been increasing prominently, and this suggests that it will soon take over the market cap of even gold as well. BTC has been performing reasonably well since last year, and crossed the $40,000 mark for the first time in its price history at the start of this year. Very recently, BTC hit an all-time high after crossing the $50,000 mark as well. Visit https://bitqt.site/, one of the leading platforms for automated bitcoin trading, if you want to earn higher profits, and reduce losses on your crypto investments.
Why is bitcoin performing so well?
In general, there are a lot of factors which have uplifted the BTC, however, we will be shining light upon and discussing some of the major and significant ones behind the bullish performance of BTC in recent times.
One of these reasons is the institutional and mainstream adoption of the BTC. The largest number of institutional and retail investors have been seen entering the crypto market and adopting great amounts of Bitcoin, converting their billions of dollars’ worth of cash reserves into BTC. Some of the most prominent global companies have also been seen showing great degree of interest in Bitcoin. For example, Square bought a large quota of BTC last year, as well as Tesla, which bought nearly $1.5 worth of BTC. The richest man in the world, Elon Musk, owner of Tesla along with Jack Dorsey, the owner of Square, both have shown interest and positive expectations in Bitcoin. Also, the global pandemic of coronavirus has greatly affected all the individual economies as well as the global economy, pushing the central banks and governments to ease their monetary policies i.e. a reduction in interest rates and purchasing assets via the program of quantitative easing – which is an effort to provide relief for the devastating effects of the pandemic on the economies.
One other factor, and a very important one which saw a great rush towards bitcoin as a financial asset for all the individual citizens, corporations and financial institutions, was the over printing and circulation of fiat in the country as an immediate consequence of the pandemic. When a greater number of money is printed and distributed by the central bank in a country, the supply of the currency increases, decreasing its demand and thereafter the value of the currency, the consequence is increased inflation and therefore people during this time rushed towards financial investments to save their purchasing power, anticipating inflation. Due to the recent positive performance of BTC, it seemed to be a common choice among people to purchase and invest their money in.
The limited overall supply of the BTC, which is a total of 21 million coins, can also be considered to be the reason behind the bullish forecast of the market analysts as they forecast a million-dollar worth of Bitcoin (per coin price) in the future. Decentralized nature of the crypto could be another reason. We all know that bitcoin is decentralized, that is free of a third-party intervention, e.g. a regulatory body’s intervention.
The BTC network, instead, is formed of mining blocks which are mined by individuals known as miners. These miners work and execute this process of BTC mining on a range of high-performance computer systems.
Due to the fact that these miners are high in number, the BTC network is not controlled by a single person or authority, and since the systems on which BTC mining is performed are quite powerful, people who support the phenomenon of BTC claim the BTC network to be among the sturdiest global networks.
There are of course some skeptics in the market who believe that this bullish run of BTC is for a shorter run, and will sooner or later succumb. However, others in the market firmly believe and rely on the long term success of BTC. Some market experts and analysts go as far as saying that the BTC will eventually become the global reserve currency of this internet and digital era.