Top 3 reasons Bitcoin Is On thes Rise

Bitcoin is on the rise, and many investors are excited by the potential of this cryptocurrency. But the question is why is Bitcoin so valuable? It may be too early to tell, but it seems that people have developed an interest in using Bitcoin as a store of value, which could lead to more long-term success.  

There are also theories that say some Bitcoin buyers are merely hedging against other investments like gold or equities. If you’re someone who invests in stocks or bonds and wants to diversify your portfolio with digital currency, then this might be the perfect time for you to buy Bitcoins.

This blog will talk three main reasons due to which Bitcoin’s popularity is on a rise.

Institutional Adoption of Bitcoin

Bitcoin is becoming more and more popular with institutional investors. There have been two major Bitcoin ETF’s (exchange traded funds) that have come to market. This has led to a large increase in institutional trading of Bitcoin and other cryptocurrency tokens as well as investments by pension funds, mutual funds and hedge funds. To start investing in bitcoins you can visit Crypto Engine

The $1 billion crypto fund raised by Cumberland Mining is one example. The firm’s founder believes that “the entire world is going digital and it just makes sense to be in this space”.    In addition to investing directly into cryptocurrencies themselves, larger firms like Goldman Sachs and Citigroup are trading on behalf of their clients using bitcoin futures contracts offered by CME Group (CME) and Nasdaq (NDAQ). 

Cryptocurrencies and PayPal

Bitcoin and Ethereum are two of the most popular cryptocurrencies in the world. Recently, PayPal has announced that it will be accepting Bitcoin for certain transactions through its Braintree Payments subsidiary. 

This is a significant move from one of the largest online payments processors as it indicates a change in how we make payments on the internet. It also means that investors may have an easier time buying cryptocurrency with their PayPal account than if they used traditional methods like credit card or bank transfer which can take weeks to process. 

With Bitcoin and Ethereum’s recent market cap, this announcement could mean major money for these currencies and potentially big returns for those who invest now before prices go up even more.

The Impact of Bitcoin Halving On Its Price

The Bitcoin mining process adds transaction records to Bitcoin’s public ledger. Unlike conventional currencies, which are printed by a central bank or backed by a government, Bitcoin relies on individuals and businesses running specialized computers that solve complex mathematical problems. 

These miners use energy-intensive computations to confirm transactions and add them to the blockchain in order for new Bitcoins to be released into circulation. As per the Bitcoin protocol, every four years there will be a decrease in reward given to miners for mining Bitcoin by half until all 21 million Bitcoins are mined. This event is referred to as a Bitcoin halving. 

Bitcoin halving reduces the inflation rate of bitcoins, which encourages long-term investment in Bitcoin rather than short term trading and speculation. When this event occurs, there’s less supply but demand remains constant or even increases until equilibrium is reached again. Thus, Bitcoin halving increases the demand of Bitcoins, which, in turn, increases its popularity.

Conclusion 

Bitcoin is gradually becoming a popular form of currency. With institutional adoption and other forms of acceptance from companies like PayPal, it seems as if Bitcoin will only continue to become more mainstream in the years to come. 

 

It’s also worth noting that the next halving for Bitcoin occurs at some point this year, which could further increase the demand for Bitcoins both now and in future.

 

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