2020 has been surely the year that was full of struggles. It was one of a kind as there was a global pandemic, lockdowns in countries, uncertain markets, and travel restrictions. Still, the financial world has witnessed a financial asset that is exploding, i.e., Bitcoin. The new and young investors have witnessed the price recovery of bitcoin in starting of 2020 from 6, 00,000 INR to around 44, 00,000 INR in 2020-end. There was a great surge in bitcoin’s price that no one has ever experienced in past years. Businesses, companies, and new startups are investing in bitcoin effortlessly to gain maximum benefit of its increasing value.
Crypto analysts expect that its price will reach $100,000 or 72, 00,000 INR by the end of 2021 by putting its short-term volatility to the side. Make the best and informed decision about investing in bitcoin through The News Spy
The rise in the Price of Bitcoin
In 2008, the first digital currency, Bitcoin, was introduced in the financial world to be a great alternative to the traditional financial system because of which many people are frustrated. In 2009, Bitcoin was launched, and at that time, the value of bitcoin was $0. The first transaction that ever took place in bitcoin’s history was in 2010 when bitcoin’s price started to increase, and a person purchased two pizzas for exchange of bitcoin.
Its value began to increase slowly in 2013 and for the first time when bitcoin’s price reached $1000. In the bitcoin mining protocol, there is a halving event according to which miners get the rewards of mining bitcoin. After the second event of bitcoin halving, bitcoin rose, and its value reached $19,000 from $1000, which was quite shocking for the entire crypto space. However, after 2018, there was a sudden decrease in bitcoin’s price, and its price dropped to $5000. Again its value started to increase in 2020, and after 2020, it seems that its growth is unstoppable.
Let’s read the two factors behind the rise in the price of bitcoin in brief.
Bitcoin halving event
The bitcoin halving event happens every four years, where the block reward for mining bitcoins is reduced to half. In 2020, the block reward was reduced to 6.25 BTC. With more and more bitcoins being mined, the supply of bitcoin is decreasing, and bitcoins are getting more in circulation because of high demand.
In 2020, bitcoin made huge growth, and its value reached new heights and amazing people. Its popularity is continued in 2021 as well, and currently, the bitcoin is traded at $54,500 across the globe.
Bitcoin was developed as a form of payment. People often consider bitcoin as a hedge against the entire economic crisis that can occur anytime, especially in the current situation of a covid-19 pandemic. Even top businesses and companies like Tesla and Microstrategy are investing in bitcoin because it also serves as a store of value at times of inflation period.
Does bitcoin have the potential to hit $100,000?
Bitcoin has become the only digital currency whose value and popularity exploded. It was first viewed as a mysterious currency with a mysterious creator, but now bitcoin has entered the mainstream, and even financial institutions have started accepting bitcoin. The tech-savvy companies are offering different crypto services to investors that are interested in investing in bitcoin. Despite the volatile market of bitcoin, two main things contribute to its price and popularity: global trends and people’s trust.
In the early days of bitcoin, there are major concerns regarding the security of bitcoins because there were many hacks and attacks on wallets and crypto exchanges. After 12 years of the invention of Bitcoin, most of the queries of crypto holders have been solved as they have understood the blockchain technology behind bitcoin. Blockchain and bitcoin can never be hacked.
Of course, after bitcoin, there have been many cryptocurrencies that have been introduced, and they have also joined the race in this digital world. Nevertheless, bitcoin remains the best and largest cryptocurrency, with a market capitalization of around $1.15 trillion, which is higher than all the world’s largest banks. The growth of bitcoin worldwide is depicting that it has now become a mainstream crypto asset.