Bitcoin has been around for a long time and its value had once been decreased to $4,000 as well. But that was not the end of Bitcoin. By the end of 2020, Bitcoin had crossed the barriers of $20,000 and by now have reached over $50,000. Bitcoin has seen a drastic rise in prices in the past year despite the Pandemic.
Bitcoin is still on the rise and there are chances that by the end of this year, Bitcoin will exceed even the current price and will continue to rise for a long time.
5 of the major factors for which Bitcoin price will increase include:
- Bitcoin and PayPal
PayPal once used to question the suitability of Bitcoin as a currency. However, being a big-name PayPal could not further question Bitcoin. In October 2020, PayPal announced new features of buying and selling Bitcoin on the platform. In December 2020, this feature was released and PayPal announced that its users can now buy and sell Bitcoin. This feature also supports 3 more cryptocurrencies including Litecoin, Bitcoin Cash, and Ethereum. This feature is to be a major cause for the rise in Bitcoin prices as there are thousands of PayPal users.
- Bitcoin Halving
Bitcoin halving is a major cause of the increase in Bitcoin prices in companies like Bitcoin Prime. Bitcoin halving is a simple technique that is adapted to increase the price of Bitcoin. The strategy is half the supply when the demand is consistent.
For instance, take the example of any product that is used for daily life. When this product is on the rise of selling, the demand for that product becomes consistent. What do you think would happen if the supply of that product was to be halved?
It is obvious that people will buy the product and will try to get as much of it as they can due to a shortage in the market. As a result, the price will increase.
The same strategy is applied to Bitcoin which is called Bitcoin Halving. It happens every four years and the Bitcoin miners receive is reduced to half.
- Bitcoin having public support
Many big names have supported and embraced Bitcoin. Bitcoin is said to be competing with gold solidly. It is also known to be virtual gold by the public.
Many billionaires are actively taking interest in investing in Bitcoin. Not only billionaires, but the public of Bitcoin is also embracing Bitcoin to be a great asset in investment.
This support is being a great help in the rise of Bitcoin prices and is likely to raise the prices of Bitcoin even in the future.
- Grayscale investment in Bitcoin
Grayscale is a renowned asset management company. It has been providing custodial services to wealthy investors of Bitcoin. Decrypt in October reported on how 40,000 Bitcoin had been picked by Grayscale which is worth over $600 million.
There are many other big names despite Grayscale. For instance, CashApp, a mobile payment service. In that quarter about half of the total bitcoin mined have been bought by CashApp and Grayscale. These companies have a total of $695 million invested in buying 85,000 Bitcoin. The influence of these companies has made a great impact on the Bitcoin market which has and will increase the prices of Bitcoin.
From August 2020 to September 2020, an investment of $425 has been made by MicroStrategy which is known to be an international giant. MicroStrategy has made a substantial profit of 103% worth $864 million. MicroStrategy has been praising Bitcoin publicly. With this investment, people started to secure as much Bitcoin as they can. And its effect will also be seen in future.
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