The growing price of bitcoin becomes a topic of discussion all around the world. It has climbed to an all-time high on 21st December 2020 at $23,974.85. Some of the analysts also predict that its price can touch $25000 by the end of the month. However, Bitcoin aka BTC is not the only cryptocurrency that is performing very well, there are many cryptocurrencies as well like ETH, XRP, DASH, XMR, FCC, etc that have shown a great move from the start of the fall.
But, why has the soaring price of BTC created a great shock value in the financial world?
Why has it become the topic of discussion all around the world? Is it only because despite it being a bad word among authorities in a lot of countries it is performing so well?
Well, no! It’s because of its unpredictable price jumps. Nowadays, where many of the stocks are underperforming, Bitcoin has shown a great price jump in just a month. It rose to a record high of $23,974.85 just a day after passing the $20,000 milestone for the first time. And there are a lot of reasons behind that. Keep learning to explore the top 3 reasons why Bitcoin and other cryptocurrencies price is rising at a rapid speed.
Investment of Corporate Giants Like Microstrategy
The business intelligence and international giants Microstrategy has invested approximately $425 million in Bitcoin from August to September this year. By following the footmark of Microstrategy, the popular mobile payment company Square invested $50 million i.e. 1% of the company’s total asset in October 2020. They did not only invested in it but also made a huge profit of 103% and 113% since the investment.
This is not just two names. One River is another company that has reportedly invested $600 million in cryptocurrencies and in the coming year planning to hold up to 1 billion Bitcoin and Ethereum.
The confidence shown by these major industry giants has motivated many companies and individuals to consider Bitcoin a safe haven for investment.
Public Support for Bitcoin Investment by Famous Personalities
Bitcoin’s positive run in the mid of 2020 has seen some of the major names embrace this cryptocurrency as a safe haven for investment.
For instance, in 2017 JP Morgan’s CEO labelled Bitcoin as a fraud. This year, the investment bank has embraced it and claimed that Bitcoin is solidly competing with gold and has a great future ahead.
A giant in the hedge fund industry, Paul Tudor Jones also referred bitcoin as an early investment in tech. Stanley Druckenmiller who had not praised BTC earlier said that this famed cryptocurrency is better than gold this time. “I own many many more times gold than I own Bitcoin, but frankly if the gold bet works, the Bitcoin bet will probably work better,” he just said it a month ago.
Apart from these famous personalities, Elon Musk, Keith McCollough, Scott Minerd, etc also support bitcoin on social media. As these famous personalities have a great influence on common people, it can be considered that they contributed a great role in the increasing popularity of bitcoin.
Adoption as a Means of Payment
Adoption as a means of payment is another reason behind the growing popularity of bitcoin. Paypal, the international payment giant, has introduced the buying and selling feature of cryptocurrency on its platform this October. Now, users can buy and sell Bitcoin, Bitcoin Cash, Ethereum, and Litecoin on Paypal and this boosts the hopes of a lot of users that BTC will hit the mainstream very soon.
Apart from this, the impact of COVID-19 on the stock market and the Supreme Court judgment has also played a crucial role in the increasing popularity of bitcoin as an investment option in India. If you are considering buying bitcoin or other cryptocurrencies, it would be good to look for a reliable and renowned cryptocurrency platform to make sure that your asset is in safe hands. If you are looking for one such coin platform in India, you should look no further than PCEX Member.