A mass Haip is gradually starting to grow around Bitcoin - rightly as it was during the previous growth in cryptocurrency growth in 2017. Last week, the coin overcame a psychologically important level of 50 thousand dollars and rushed up. In addition to this, BTC is now much more often discussed both in the circles of manuals of various large companies and in government organizations. However, what actually makes Bitcoin so expensive - especially this year? We tell about the situation more.
Note that the issue of Bitcoin's value remains open - especially for many newbies. Usually, new people in the cryptocurrency industry are difficult to understand why others are willing to pay huge money for not seeing and touching. In addition, the cost of cryptocurrencies in essence is not reinforced, and therefore it can jump in different directions with an incredible pace.
Perhaps one of the easiest answers regarding the value of Bitcoin is that he "stands exactly as much as someone pays for it." However, all this is affected by a number of other factors, which makes BTC unique compared to their "competitors". The cryptocurrency is still very young compared with the assets of the type of gold and stock, so the continuation of its growth is very likely. Also, many experts still do not exclude the scenario of the complete collapse of Bitcoin - or at least noticeable problems.
However, the reasons for the formation of a high price of cryptocurrencies are - and not one. Here are three of them who particularly affect the formation of a good reputation of Bitcoin in the eyes of investors.
History cryptocurrency and its use
Recall, the idea of decentralized currencies existed long before Bitcoin. However, only in 2008, a certain developer under the pseudonym of Satoshi Nakamoto was able to embody her into a reality in the approximately the form in which we know it now. The first bitcoins were circulated in narrow circles of fans cryptocurrency in 2009 and were not attached in the cost to any "real" asset. At about the same time, the famous purchase of two pizzas for 10 thousand BTC was held, which remained forever in the history of cryptocurrency.
Then another important stage was followed in the history of cryptocurrency - it began to gain popularity sharply as a means of payment for various kinds of prohibited goods and services. The first BTC popularity peak came on the history of the Silk Road platform in Darknet, the collapse of which we described in detail in a separate material.
Now the BTC is mostly perceived as a means of preserving capital - largely due to the permanent long-term growth of the price of the coin. In addition, because of the new crisis caused by the spread of COVID-19, Bitcoin also consider the favorable means of protection against inflation.
From here, we make an important conclusion: the value of cryptocurrencies in the eyes of investors, including its long history. Bitcoin exists for more than twelve years and for all this time did not give reasons to doubt. And therefore, the buyers of cryptocurrency including see the mechanism in it that will not fail and will perform its own functions.
Investing large players
Over the past year, many large companies are "put on his hand" to growth, many large companies - including Tesla and Microstrategy. The latter, by the way, is currently the largest BTC holder among organizations around the world.
Many individual investors simply follow the example of such "whales" and invest in those assets where "smart money" goes. And as you can see, over the past few months, only a profit could be removed from such a strategy.
That is, in this case, the reputation of cryptocurrencies, including supporting companies with world names. So bitcoins no longer a "speculatory tool", as bankers and officials love to speak, and a full-fledged investment agent.
No connection with other assets
What is actually tied by the price of Bitcoin? A short answer to this question: BTC is not tied to the course of governments, markets or behavior of other ordinary currencies. In the past, BTC also demonstrated a certain level of correlation - that is, connections - with a stock market, but the cryptocurrency itself exists on a decentralized basis, supported by miners around the world. By the way, the Director General of the above-mentioned MicroStrategy company Michael Sailor previously described the bitcoin of the next quote, according to Cointelegraph.
In addition, now BTC, according to Sailor, passes through a series of important changes.
Some people were indeed invested in Bitcoin, including in order to protect themselves from a possible negative situation on the stock market or other niches, because the cryptocurrency does not depend on it. As shown by the last year in a pandemic, this important feature rewards investors. And this is also a plus adding points to the cost of BTC.
As a result, we believe that Bitcoin is the center of the new revolution in finance - and now in the same place its basic value. The more people are aware of the fact of innovation and the BTC domination in the digital world, the more money enters the crypton. It is likely that in the coming years, Bitcoin will become a full-fledged alternative to gold or even replaces the precious metal. At a minimum, the fans of cryptocurrencies do not doubt this, which the title of the main asset in the world propheshes it.
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