Bitcoin, the most popular cryptomony beats all records in the digital currency market. Bitcoin prices have been climbing steadily since the beginning of the year, recording an increase of 89%. The Queen of Cryptomoney, launched in 2009 by Satoshi Nakamoto, closed on Sunday 21 February at more than 56,800 dollars. On Friday 19 February, the value of all Bitcoins on the market surpassed the $1 trillion mark for the first time, according to the counter on the site coinmarketcap.com.
Such a capitalization realized only in 12 years is considered by specialists as dazzling and arouses, henceforth, the interest of big companies and monetary intuitions. How do you explain the unbridled rise of Bitcoin? How far will Bitcoin’s value go? What is the long-term potential of this cryptomony?
The value of Bitcoin: towards what limit?
The price of Bitcoin is determined by the law of supply and demand. When buyers are higher than sellers, the value of Bitcoin increases, the reverse is true. Investor interest in Bitcoin continues to grow, boosted by the democratisation of its use in international finance. Trading platforms are increasingly authorized by monetary authorities. Multinational payment companies (PayPal, Square and Visa) have launched programs to facilitate the use of Bitcoin. This process of democratization has enabled Bitcoin to gain a critical mass of users and to strengthen confidence within its community. Major investors are now betting on Bitcoin’s performance, which gives this virtual currency more legitimacy! The multinational asset management company BlackRock has authorised two of its funds to buy Bitcoin derivatives. Tesla has stated that it has invested $1.5 billion in Bitcoin and will soon accept this currency as a means of payment for its electric vehicles.
At the time of writing and according to the counter at coinmarketcap.com, the number of Bitcoin in circulation has reached 18,635,162 BTC. In the future, the maximum number of Bitcoins that will be mined is limited to 21 million. The limit on this reserve and the increase in applicants bode well for the value of bitcoin to increase over time. Several analysts predict that bitcoin could reach $100,000 by the end of 2021 and $1 million by 2025.
Although its value is volatile and subject to speculation, many Bitcoin enthusiasts see this digital currency as a safe haven, often compared to gold!
Indeed, it is its issuance mechanism that gives Bitcoin this coveted feature in times of crisis. Since the number of Bitcoins in circulation is limited to 21 million by a computer protocol, this digital currency is protected against inflation. Holding Bitcoins can therefore be an alternative to traditional assets that are often exposed to currency erosion. In addition to a galloping valorisation, Bitcoin offers several advantages over gold (intangible, transferable, divisible, accessible…).
https://linitiative.ca/finance-internationale-bitcoin-lenvolee-de-la-reine-des-cryptomonnaies-suscite-linteret-des-grands-investisseurs/https://linitiative.ca/wp-content/uploads/2018/04/bitcoin.jpghttps://linitiative.ca/wp-content/uploads/2018/04/bitcoin-150×150.jpg2021-03-01T08:10:22-05:00Sofiane Idir.FinancesBitcoin, the most popular cryptomony beats all records in the digital currency market. Bitcoin’s prices have continued to climb since the beginning of the year, recording an increase of 89%. The queen of cryptomoney, launched in 2009 by Satoshi Nakamoto, closed on Sunday…Sofiane IdirSofiane