Bitcoin is the first successful attempt at digital cash through the use of cryptography. Even though this is an incredible innovation, only a few investors have predicted that Bitcoin would reach this kind of success.
Actually, Bitcoin remains to this day one of the largest cryptocurrencies by market capitalization (its market cap is over $1 billion), and its price has surpassed $63,000 in April 2021. This incredible success of Bitcoin dominates the news from the traditional media and has attracted a host of new investors.
If you’re new to the crypto community, you might be wondering what drives this Bitcoin gold rush and how it entered the mainstream in a very short span of time. In this article, we cover the most important factors that are driving Bitcoin’s gold rush.
One of the main reasons Bitcoin became a successful virtual currency is that it was developed as a decentralized cryptocurrency. Bitcoin is a distributed currency that is developed on peer-to-peer-based technology, which means that the senders and receivers of BTC transactions are able to make payments without relying on a third party or authority to authorize and approve the payment process.
Blockchain technology is the underlying technology of Bitcoin, and the protocols of the blockchain network position Bitcoin as a unique cryptocurrency. Also, because this is a peer-to-peer technology, the transaction fees are kept to a minimum, and this makes Bitcoin an alternative option for international payments.
In addition, the decentralized nature of Bitcoin positions the cryptocurrency as a safe-haven asset that has a limited number of Bitcoin tokens and isn’t impacted by different economic factors that are tied to traditional currencies such as inflation, monetary, fiscal policies, political and economic instability and many other events that can disturb the position of traditional currencies. Lastly, due to the design of blockchain technology, the real identity of each user is anonymous, and it isn’t connected with the actual users on the network.
The crypto trading sites are also a huge factor that made Bitcoin not an only accessible cryptocurrency but also prompted the rise of BTC. For example, there are automated trading sites like https://bitcoinupapp.com/
This system is based on Artificial Intelligence technology, and it offers superior performance when it comes to crypto trading. You can potentially earn up to $1500 on your first day of trading here. It’s also worth mentioning that the platform uses DLT technology for trading which creates a transparent, safe environment. So, you can keep up with your investments in real-time even on the move because this is a mobile-friendly platform.
Involvement of the Business Sector
This is also a very significant step for the mainstream adoption of Bitcoin and other cryptocurrencies. Businesses, regardless of their status and success, are accepting BTC payments, including brick-and-mortar shops, as it is now possible to accept and support BTC payments offline.
Plus, famous businesses that operate offline and online are supporting the record-breaking surge of Bitcoin’s price by accepting purchases made in BTC. You will find notable brands such as Twitch, Bloomberg, Tesla, Square, Mastercard, Pay Pal, and many others.
More specifically, when famous brands decide to accept BTC payments, the demand for cryptocurrencies and the price of Bitcoin rises. For example, when Overstock, for the first time, declared that it accepts BTC, the price of Bitcoin rose to $1,000 in 2014. So, as more businesses accepted BTC purchases and it was possible for them to support Bitcoin in traditional stores, the demand for BTC soared.
The last reason why Bitcoin became a cryptocurrency that is best known for its record-breaking value is the support from institutional investors such as the Osprey Bitcoin Trust Fund, among other crypto trust funds. This further validated the status of Bitcoin as a reliable payment option for traditional, online businesses and individual users.