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Bitcoin, at one point, during its bullish run, surpassed $60,000. This is an unprecedented record for Bitcoin cryptocurrency and it has since become one of the most important milestones so far in the crypto community. It also translated to other cryptocurrencies that entered a bull market phase.
However, the question arises why Bitcoin is considered a highly valuable cryptocurrency today, as that was in the case of this decade ago when Bitcoin was first created. In this article, we explain the crucial factors that have prompted the growth of the price of Bitcoin and helped Bitcoin reach a status of a safe-haven asset, and how to buy Bitcoin without verification.
Number of Bitcoin Tokens
One of the crucial factors that made Bitcoin a valuable asset is the capped number of BTC. More specifically, Satoshi Nakamoto which is the inventor of Bitcoin has limited the total number of BTC to 21 million. The main idea was to regulate the inflation rate of the cryptocurrency as this is a distributed digital currency, and for it to operate as such, it is important to have an already predetermined number of Bitcoin tokens.
Also, as we mentioned earlier, this is a decentralized virtual currency, its value largely depends on the total supply and demand on the crypto market. The supply is restricted, and over time it was dwindling as more Bitcoin tokens entered the crypto market. This impacted the interaction of supply and demand, which continued to shift. Actually, the supply was increasing slowly while the demand for Bitcoin over the years experienced rapid growth. Overall, this means that Bitcoin is a scarce and valuable asset, and its scarcity isn’t tied to any other factors.
Online Trading of Bitcoin
Another reason why Bitcoin continued to grow in value was the availability of online trading sites. Their number also was constantly rising as the interest for the cryptocurrency was increasing. One example of a great trading platform is Bitcoin Lifestyle.
This online trading site offers an opportunity for users to invest in a BTC through Artificial Intelligence-powered software. Thanks to the impeccable design of this trading platform, you can earn up to $800 per day. Besides, the platform is intuitive, user-friendly and easy to use for both beginners and experienced traders. If you want to register on the site, all you need to do is make a deposit of $250.
The rise of the only trading sites is an important factor that stimulates the growth of Bitcoin because, as we said it makes trading accessible to a global audience, and it also is a way to reach a consensus about the price of Bitcoin as there isn’t a specific market for BTC.
The protocols of the blockchain network are created in order to keep the supply of BTC under control. Bitcoin halving is one of these protocols which impacts the rate at which new BTC is generated through mining, and because it cuts in half the miners’ block reward, it also halves the available number of Bitcoin tokens on the market. This again emphasizes the digital scarcity of virtual currency. Otherwise, there are other protocols that make the mining process increasingly difficult based on the hash rate of the network.
Bitcoin Demand from Retail and Institutional Investors
Due to the accessibility of online trading sites, retail investors have plenty of choices when it comes to buying Bitcoin, selling or changing their position anytime that they want. The demand for BTC, especially during 2020-2021, was really fuelled by institutional investments. The change in the crypto market happened when accredited institutional investors like the Grayscale Bitcoin Trust Fund entered the crypto market during the last bull market phase.