The increase of Bitcoin’s popularity started when its value grew by 20% in only 24 hours in April 2019. Since March 2019, the price of this cryptocurrency almost doubled. Since then we have had several ups and downs when it comes to the value of BTC. According to several projections we’ve stumbled across, we are going to witness a significant rise in 2023. Those who are not into the topic so well might ask “Why should I care about the rise of Bitcoin’s value?”.
We are going to be blunt with our answer to that question. You should be aware that the price is defining the digital currencies market. Because Bitcoin has the largest market capitalization, as all of us are witnessing, it has a really big influence on the price of all other cryptocurrencies. The situation stays the same when the value of BTC drops. The value of all other digital currencies is going to drop.
You should know that BTC was the first cryptocurrency that was created. Today, it’s so popular that some people heard about Bitcoin and don’t know what digital currencies are. As you may presume the first cryptocurrency of 90% digital currency owners was BTC. We can say that it is a de facto reserve currency in the world of cryptocurrencies like the dollar is for the world. In the last two years, much digital currency software was developed in order to help the owners.
If you are interested in this topic, you can bitcointrader2.com. What’s more, according to research, BTC will be the 6th biggest reserve currency in the world by 2030. This rise is going to start with the next year. So, we are going to provide you with seven reasons you should invest in BTC next year. This is going to be a great year for all digital currencies, without a doubt. Without further ado, let us begin.
Increase in BTC Adoption
We had the pleasure of seeing two studies, from eToro and College London that suggests that we are going to have BTC as mainstream in the next decades. Those studies show that digital currencies have a bright future, even though a big percentage of people are still suspicious of them.
One of the reasons for this could be age. eToro states that almost half of millennial online traders are trusting cryptocurrencies more than the stock market. Also, almost half of the participants consider moving some of their pension to BTC or some other cryptocurrency. For more information on eToro, you can check the Traders Union.
Positive News Is the Main Drive
As we stated at the beginning of this article of ours, April 2019 was particularly successful when it comes to BTC. This increase signals crypto users that there is a bright future ahead. Naturally, when the interest in something is high, the price drops. This was the primary reason that we witnessed some ups and downs with the value of Bitcoin.
However, this is all positive. Like the name of our sub says, the positive news is something that is going to drive digital currencies forward. For example, after the month of April, Facebook decided to lift a ban that it had on digital currency ads. Also, some other huge companies decided that they want to include crypto in their business, like Bakkt and Microsoft.
Immune Market Sentiment
As we showed in the previous part, positive news can only help. However, when it comes to the market itself, we’ve witnessed that it doesn’t care too much about scandals and the hacks. In May 2019, we witnessed the news that Binance, one of the crypto exchanges, was hacked. According to some reports, around $40 million were stolen by hackers. Naturally, the price dropped.
However, only a few days after the hack, the price came back to the old value. You see that things that are surrounding the market don’t have too much influence on the market itself. Therefore, you can rest assured that all of your investments in digital currencies are going to be safe, whatever digital currency you choose to invest in.
The Price Increase
Nobody is certain what was the reason for Bitcoin’s value growth in early 2019. However, this trend looks like it has a life of its own at the moment. That was proven to be true so investors from all over the world started investing in all of the digital currencies in order to collect the extra value.
This trend continues even today. We can say that there is a fear of missing out when it comes to BTC. Some people could feel a little pressured if they don’t start investing and miss the possible benefits in the future.
We think that all of the previous three reasons could be combined into one. We would call it hype. The hype is something that is the main driver for all things. Especially when it comes to economy-related things.
Market’s External Forces
Whatever the status of cryptocurrencies is in your country, that can’t have an impact on the price. However, some global markets or trends could potentially have an impact on the price. Some important people are even claiming that a significant percentage of the people are considering switching from traditional money transactions to digital currencies.
The reason for this move would be their full independence from any system to control them. This is not impossible because we’ve already witnessed some people in Venezuela and Zimbabwe switched to digital currencies.
A Prosperous Future
When it comes to the current situation, we have seen some reports that are saying that Bitcoin is going to decrease in value significantly. However, more credible ones say that after this occurrence we are going to witness an increase like never before in Bitcoin.
For example, these sources say that the value of BTC is going to halve in early 2023. But this is going to be the spark that will influence the future growth of this popular digital currency. This is a known process because every 210,000 blocks the value is going to be halved. This is just a way the system is working. You can expect even more days after that.