Why are investors rallying behind Bitcoin?
Bitcoin hit a record high price of over $ 66,000 last week. On October 21, 2021, the world’s largest and oldest cryptocurrency opened for $ 67,139 (around Rs. 50.25 lakhs). The coin has achieved record after record since the start of this year and has consistently made the headlines. Bitcoin, which is by far the most valuable cryptocurrency in the world, has gained several investors during this period. It still tops the price charts when it comes to the value of market cap. Despite some strong competitors like Ethereum, Bitcoin continues to be a favorite among investors.
Here are a few reasons why investors continue to rally to Bitcoin:
Most Popular Cryptocurrency: Bitcoin continues to be the most popular cryptocurrency on the market. Although Ethereum is only second, the price and market cap value between the two is huge. Bitcoin’s price stands at around $ 59,000 (around Rs. 44 lakhs) at the time of writing, while Ethereum’s is at $ 4,041.92 (around Rs. 3.03 lakhs) The price determines often the gain of an investor. Therefore, the higher price of Bitcoin indicates that investors are more attracted to it.
Market capitalization value: Often, investors rely on the value of market capitalization to decide on their investments. Better market capitalization denotes a better presence of the crypto coin in the market. Bitcoin holds a prominent hand with over $ 1,000 billion in market capitalization. This makes Bitcoin a tempting choice for investors.
Celebrity endorsement of digital currencies: The endorsement of digital currency by celebrities is one of the main reasons for the growing popularity of Bitcoin. In India, celebrities like Amitabh Bachchan and Salman Khan have already embraced the blockchain technology that underpins many cryptocurrencies. Celebrities have also started to take an active interest in non-fungible tokens (NFTs) with their unique digital signatures. All of this has led to the growing popularity of cryptocurrency as a whole and Bitcoin in particular.
Rarity factor: The rise in the price of Bitcoin also boosts investor confidence who see a powerful disruptor that can affect the centralized economic structure. There is also the scarcity factor that adds to Bitcoin’s traction among investors. There are only over 18 million Bitcoins available today. The total number of Bitcoins to be produced is capped at 21 million. This limitation in the number increases the price of Bitcoin as the popularity increases. It also prompts investors to rally around Bitcoin.