Today cryptocurrencies are the dominant force on the market. Based on the latest data, there are approximately 7 million people around the world that are investing and using cryptocurrencies. Also, it’s expected this number to continue to increase in the following years.
Bitcoin is the main reason why the crypto market is expanding and why there is a crypto market today. However, Bitcoin had a rough start in 2009 when it was initially created, and only a few supporters believed that cryptocurrencies would become superior digital payment methods.
But, the latest cycle of Bitcoin has only demonstrated the money-making potential of the cryptocurrency and also attracted new users to the crypto market. Actually, Bitcoin’s price continued to rise from May 2020 and in 2021 reached a new record as high as $63,000. This new price made Bitcoin more valuable than gold.
The popularity of Bitcoin also reached Nigeria, and there are many users from Nigeria that are looking to add BTC to their portfolios. Below, we will take a look at the main factors that enhanced the popularity of Bitcoin and the future possibilities of this volatile cryptocurrency.
Support From Businesses
The advantages of Bitcoin attracted the support of the business sector because businesses realized that by accepting BTC payments, they are not only communicating with another audience of crypto owners that wants to purchase their products and services but also, they are able to gain BTC.
Even though there are many global brands that have supported Bitcoin and by doing that, they inflated the demand for BTC, there are also smaller businesses, including e-commerce sites and even brick-and-mortar stores that support BTC.
One great example is this reputable Bitcoin gaming site where you can use Bitcoin tokens to play your favorite casino games online. Otherwise, the number of global brands included on the list continues to rise, and some of them are Microsoft, AT&T, Expedia, Starbucks, PayPal, Whole Foods, OK Cupid, etc.
This was important for the growth of Bitcoin because it supported the adoption of BTC and increased the demand for Bitcoin tokens.
Limited Number of Tokens
On the other hand, the total number of Bitcoin tokens is capped at 21 million. This makes Bitcoin one of the rarest and precious cryptocurrencies on the market. This is why the demand generally is greater than the supply, especially since Bitcoin is the oldest cryptocurrency on the market and has gained the approval of both institutional investors, reputable businesses, as well in business individuals.
The subsequent rise of the price of Bitcoin and its limited supply boosted the status of the cryptocurrency in 2021 as a safe-haven asset. Typically, safe-haven assets are assets that are resistant to inflation and are even more valuable in times of financial instability. Hence, it comes as no surprise that Bitcoin went to become one of the most popular cryptocurrencies on the market.
Using BTC for Payments
Bitcoin is also famous due to its increased usage as a payment method accepted by many different online and offline businesses. It’s worth noting that the BTC payments are associated with low transaction fees on the blockchain network and short processing times.
Because the blockchain network is distributed and public, the users are able to directly send and receive BTC payments without the involvement of third parties. So, the transactions fees are minimal, regardless of the location of the users. Plus, the blockchain network grants a certain level of anonymity to the users, which isn’t possible when you’re making transactions with fiat currencies.
Profitability
The profitability of Bitcoin is the major aspect of why anyone is interested in investing in BTC. Due to the decentralized nature of Bitcoin, the inflation rate is kept under control as well as its supply.
Thanks to Bitcoin halving and the ongoing Bitcoin mining process, there are about 2.3 million tokens left to be added to the blockchain network. This made Bitcoin the largest and most dominant virtual currency on the market.
Actually, the latest bull cycle resulted in a continuous rise in the price of Bitcoin, and in December 2020, the price surpassed $20,000. Following that growth, in 2021, the price doubled to $40,000 in January and spiked to $63,000. Also, it’s predicted that at this rate that Bitcoin will break the $1 million barriers in 2037.
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