4 Factors That Propelled the Price of Bitcoins

The moment one hears about the term Bitcoin, only two things pop up in the head, immense profitable scopes and complicated market volatility. If you are worried about the later and yet find yourself attracted to the first point, then you can easily get your worries out once after clarifying the points which propel the price of bitcoins. People can nowadays start investing or trading Bitcoin at any time via the convenient apps of the exchanges or by visiting https://bitcoin-revolution.ro/.

It is entirely undeniable that there are risky factors involved in the trading process of bitcoins due to various reasons. The first one being the presence of the whales in the trade market, market influencers, critics’ comments, sensitivity of the crowd, cyber thefts and data breaches, etc. 

If these points are going over your head right now, and if you are unable to determine whether you should invest in bitcoins even after knowing the market volatility and price fluctuations, then it is advisable for you to give it a quick shot at least. 

All the above factors of propelling the market prices do come with vibrant solutions. Checking out the following article will help you understand the basic solutions to the problems right away. 

Factor #1: Institutional adoption

Bitcoin is the most popular cryptocurrency that is popular among the mass as digital gold. The denotation itself speaks a million words about crypto. You would need to be clear on this part that volatility and price fluctuations would always remain the crypto trade market as permanent guests. 

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But the present trend is all about adopting modern and alternative ways of transactions that won’t include cash exchange. The recent trend is the conversion of cash treasuries to cryptocurrencies, especially Bitcoins, by public companies.

MicroStrategy is one of the pioneers in converting cash into crypto. The publicly listed company has converted the $425 million value of cash reserves into the equal worth of Bitcoins. If such a big company considers BTC as a better store of value, the institutional adoption rate will increase.

Needless to say, the market cap will increase, triggering a hike in the price of Bitcoins. 

Factor #2: Co-relation between PayPal and Cryptocurrencies

PayPal, one of the popular most global digital payment companies, announced the launch of cryptocurrency buying as well as selling on the PayPal platform. This declaration in October 2020 mentioned four cryptos that had the maximum trading volumes:

  • Bitcoin
  • Bitcoin cash
  • Litecoin
  • Ethereum

PayPal simultaneously declared the plans of allowing all transactions using cryptocurrencies. Once people came to know that they can buy things and pay using bitcoins, the volume of purchases of BTC went sky-high. And that was an initial trigger to the major leap of the crypto’s price by the end of 2021. 

PayPal alone has more than 350 million users. The declaration instantly allowed 30 million merchants the option to receive all the payments via cryptos. 

PayPal established Bitcoins as a sustainable currency. As a result, the demand for digital assets will increase, proportionally increasing the price of the crypto. Several private investors are trying to adopt the cryptocurrencies 

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Factor #3: Halving triggers scarcity

It is not a secret that all the cryptocurrencies available in the market have limited supply. The third Bitcoin halving occurred in 2021, and the next one is about to happen in four years. 

The importance of Bitcoins halving is immense. There are 21 million Bitcoins available. When people will know about the scarcity of the asset, the demand will rise. Hence, the price will soar higher. 

Factor #4: Ease of accessibility

And if you are unwilling to use Bitcoins for transactions. You can anytime convert crypto into cash. Therefore, the ease of accessibility has become a major factor boosting the price of Bitcoins. 

A final thought

Many of you may have stopped following the price of BTC seeing the unimaginable surge during the end of 2021. But it’s not the maximum. The price can rise further in the future. 

Again, some of you may refrain from investing in BTC right now, thinking that the price will remain low forever. But this is the time to invest. Don’t lose the golden opportunity as the price of Bitcoin will definitely increase in the coming year, promising immense profit. Click here for more information on bitcoin pricing.