Predicting the price of popular cryptocurrencies and the usefulness of investing in this cryptocurrency have recently caused a great stir of controversy. Understanding what was and is Bitcoin, hundreds of experts and investors analyze the dynamics of bitcoin growth, wondering what awaits the “digital gold” shortly. So why is it growing?
Pointers for Bitcoin’s Success
Bitcoin is gradually gaining momentum. Many analysts are confident that this is the perfect storm for this cryptocurrency. Such a development is taking place against the backdrop of trade wars. While uncertainty in financial markets is growing, Bitcoin is a great way to stop the panic.
There are five reasons why Bitcoin will be popular in 2022
1. One of the most necessary events in Bitcoin’s history occurred in May 2020. To reduce the cost of mining, you will have to cut supplies. Thus, the price of the cryptocurrency will increase.
2. Recently, traders have seen gold and bitcoin as salvation from traditional financial assets. Bitcoin followed the example of gold, which does not happen so often. The supposed “randomness” between these two markets has stopped. It is a positive indicator for both gold and Bitcoin.
3. Excellent advertising for the cryptocurrency market was done. The company’s team has confirmed the position of cryptocurrencies in the market.
4. Unrest in the stock market also reinforces traders’ confidence in Bitcoin.
5. Inflation in many countries has also given impetus to the desire to stabilize the economy through cryptocurrencies.
Support for cryptocurrencies by the governments of different countries has a positive impact on the growth of the bitcoin rate. The adoption of legislative initiatives supporting the development of the crypto industry increases the demand for digital currencies. Overall, financial markets seem poised for some blockchain-based disruption. Conclusions can be drawn closer to May 2020.
Also read: Why is Bitcoin Taking Over The Real Estate Sector?
A sharp increase in the rate of bitcoin
The value of bitcoin is on a constant shift; it constantly falls, then heads up. However, the speed at which the most popular cryptocurrency manages to update its highs is astounding. In 2021, the value was 68,000 $, in 2022 August, the value is 23,000 $. The shift is huge. .
Reasons for the growth of cryptocurrencies
The key question is whether the virtual coin can surpass previous performance or even approach the previous heights. Some experts believe this and make several arguments:
“Bitcoin will be used as a security in the future.” For people to trust this new financial tool and start using it, a better security system will be created that covers the entire crypto industry. Once this happens, more people will start using bitcoin, so the development of this industry in aggregate will be crucial. Christian Ferry, president and CEO of Blackstar
Marble states, “Only when regulated exchanges like tZERO, Coinlist, or even NASDAQ open up a platform for cryptocurrency trading will people start investing directly in bitcoin.”
The third thing that can increase the value of bitcoin is the proliferation of cryptocurrency exchange-traded investment funds (ETFs). Chris Cline, co-founder and COO of the Bitcoin IRA, believes that prices will definitely return to highs. “Cryptocurrency exchange-traded funds can simplify trading through brokerage accounts.” ” It will also contribute to the growth of prices for bitcoin and other cryptocurrencies,” he said.
Will the Bitcoin rate grow in the future?
Analysts almost unanimously believe that the cryptocurrency will grow in price. Most believe that bitcoin will not disappear from the market and, in the future, its position will only strengthen. Moreover, some representatives of companies and venture investors from different countries are confident that the bitcoin rate may double, returning to the mark (that it reached at the end of December 2017).
Conclusion
Bitcoin is not a fad anymore but has become a desirable financial tool with limitless growth potential. There are more than 1500 assets on the platform: cryptocurrencies, tokenized shares of the world’s largest companies, currencies, ETFs, stock indices, currencies, and bonds.
On the stock exchange, the purchase and sale of assets “physically” and trading with leverage up to 500x are available. The possibility of losing all investments exists with investing. The success of prior investments does not guarantee future success. People take financial advice at bitiq.org.
Also read: 5 Ways To Safeguard Your Cryptocurrency Against Fraud
