Does Bitcoin Price Hitting US$100k Make any Sense?

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Bitcoin price

Bit­coin is undoubt­ed­ly the favourite cryp­tocur­ren­cy invest­ment. From cor­po­rate investors to retail ones, all have a soft cor­ner for it. With the high­est mar­ket cap­i­tal­iza­tion, Bit­coin holds impor­tance like no oth­er. Over the years, Bit­coin has seen a lot of ups and downs. Despite the volatil­i­ty, investors con­tin­ue to invest in it for they know the returns are promis­ing when held for a sig­nif­i­cant peri­od. Now, the real ques­tion that aris­es is – Does Bit­coin price hit­ting US$100k make any sense? Well, sim­ply put, the answer to this ques­tion is quite sub­jec­tive as it depends on what an indi­vid­ual investor has to say.

To under­stand whether the price of Bit­coin is jus­ti­fied enough or not, it is impor­tant to under­stand the fac­tors that are respon­si­ble for deter­min­ing its price.

 

Demand for Bitcoin

As known to many, there can be a max­i­mum of 21 mil­lion Bit­coin in the net­work and more and more investors are doing what­ev­er it takes to pur­chase Bit­coin. With the increas­ing demand, what comes along is the increase in the price of Bit­coin. Well, if this is to be account­ed for then Bit­coin price hit­ting US$100k does make sense.

 

Acceptance of Bitcoin in different countries

Ever since Bit­coin was launched, there has been a con­stant debate with regard to its accep­tance across nations. Though many coun­tries are not in favour of cryp­tocur­ren­cies, there are some that have opened doors for cryp­tocur­ren­cies includ­ing Bit­coin. As coun­tries con­tin­ue to ease restric­tions per­tain­ing to Bit­coin, the demand for the same is increas­ing day by day. This is why Bitcoin’s price touch­ing US$100k isn’t that hard to digest.

 

Institutional Bitcoin adoption

Today, Bit­coin is con­sid­ered to be a safe asset against mar­ket volatil­i­ty and infla­tion. Now that a lot of com­pa­nies are con­vert­ing their cash trea­suries into cryp­tocur­ren­cy, it is quite obvi­ous to see a surge in the price of cryp­tocur­ren­cies. Well, that seems to be good enough a point to sup­port the ris­ing price of Bitcoin.

 

Easy public accessibility

For investors, cryp­tocur­ren­cies serve to be a store of val­ue and a mode of exchange. Ini­tial­ly, they start­ed off as a legit pay­ment method, but with time, they have estab­lished them­selves as a new asset class over the past decade. Bit­coin can be accessed very eas­i­ly and the fact that investors con­sid­er it to be a bet­ter store of val­ue and a hedge against infla­tion makes it one of the prici­est assets that one can own.

To put it in sim­ple terms, if the ris­ing Bit­coin price has put you wary of thoughts and you end up think­ing that it is prob­a­bly too late to invest in Bit­coin, well it is time you realise that this is just the begin­ning. The com­ing days would see a surge in prices of not just Bit­coin but var­i­ous oth­er alt­coins too.

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