Not long ago, the idea of digital currency seemed like a fuss. One could reject it in a second knowing they were putting their hard-earned money on the internet, digitally, without any guarantees or promises.
If you’ve been following the prices of bitcoins in 2019, you might as well know that it was a rough start until the second half of May 2019. Bitcoin price exceeded $8000 on May 24 – a sudden increase after the summer of 2018.
Considering the ever-evolving economy and unexpected fluctuations in bitcoin price, many people are raising questions about its integrity. First thing first, if you’re worried about losing your money because you’re thinking to invest in bitcoins, think again.
According to an article on Forbes, people made up to 150% profit from the first trading day of September 2019 as bitcoin price increased from $3890 to $10,383.
That’s a huge number, isn’t it?
After staying low for a year, the leading cryptocurrency medium bitcoin is coming back again. Overall, the value of Bitcoin has only increased from the start, following a tragic journey.
Reasons the Bitcoin Market is Growing
The growing price of bitcoin has raised many questions. People are still confused about its integrity and whether it is a good choice to invest in the bitcoin market. But there has been a significant increase in searched queries like “how to get bitcoins,” “how to buy bitcoin,” “how bitcoins work,” “bitcoin price” and more.
In this regard, here are 4 reasons the bitcoin market is growing:
1. Advancement of Cryptocurrency
It is said that the increased popularity of cryptocurrency, especially bitcoin, can reduce the need for financial institutions. With most of the cash saved electric and the ability to pay for most of the things online makes it a legit currency. In fact, there are some online marketplaces that accept bitcoins payment besides PayPal, Mastercard, and Visa card.
Though the blockchain industry still has a long journey to cover to reach its full potential, it has developed much from the past 2-3 years. There are now dozens of reliable cryptocurrency wallets, cryptocurrency exchange, and mining pools available online. Thus, say goodbye to filling bulky bank forms and taxation because you’re just a few steps behind at saving your hard-earned money online.
2. Some Historical Instances
Cryptocurrency is like a new breakthrough in the financial world. Though it has been on the market for years, its full potential is still limited to the techy guys. In fact, only technical nerds are supporting it in hard times.
This is because the sudden fluctuations in bitcoin price are too much for the general public. Still, bitcoin is now gaining enough popularity among entrepreneurs, celebrities, businessmen, and personal brand owners. Did you know that your favorite celebrities are also investing in cryptocurrency? That’s another reason to believe in the growing bitcoin market.
3. Involvement of Large Investors
When a sudden decrease in bitcoin price, most of the people set out to sell it for the better good – fearing it doesn’t decrease anymore. For the general public, selling it is for the best.
But are you aware of the other side of the trading world? Do you know why they’re storing thousands of bitcoins? Obviously, it isn’t just because they want you to secure your investments in a better way.
After a decline in an asset’s price, small investors usually sell their assets in fear to lose even more. On the other hand, large investors see the bigger picture and they start buying the same assets at a lower price. After a few months, they again end up profiting more.
Multi-national companies, famous entrepreneurs, and businessmen are also investing in bitcoin. Thus, now is the right time to multiply your hard-earned cash with bitcoin investment.
4. Institution vs. Retail
According to Google Trends, bitcoin-related searches on the internet have considerably decreased since 2017. In fact, they make up only 10% of what was recorded in 2017.
On the other hand, the institutional demand for bitcoin has increased rapidly. So, while may people have stepped back, larger organizations are still investing in bitcoin – growing its market at a great pace.
Considering the discussed reasons, the bitcoin market is growing, it has become quite evident that 2017-2019 cryptocurrency hype is just the beginning. Overall, whoever is showing interest in digital currency today will benefit from it tomorrow. It is like a long silence before the storm comes.