Cryptocurrencies, especially Bitcoins, are a safe-heaven asset against the increasing market volatility and inflation. More and more people are investing in cryptocurrencies, making it a lucrative investment option for millennials. The boom of BTC has increased significantly since the emergence of the Covid-19 pandemic allowing people to make huge profits.
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In this article, you will get insights into how bitcoin is becoming more and more mainstream.
Increasing popularity during the pandemic
The primary reason for bitcoin becoming more and more mainstream is because it has started to gain sudden popularity during the pandemic. The value of cryptocurrencies reached new heights, making them a lucrative digital asset for investment.
While most businesses were forced to shut down during the pandemic, whereas several entrepreneurs saw bitcoins as a profitable business opportunity and started businesses that involved cryptocurrencies, many big multinational companies around the globe have started to accept payment via Bitcoins.
Even several influencers and celebrities saw the upcoming worth and potential in cryptocurrencies and invested huge money in them. Following their favorite celebrity and influencers, many people also started to invest a part of their income in the crypto market. All these factors contributed to the increasing popularity of BTC.
An alternative asset for investment
The unique features and potential of bitcoins in revolutionizing the monetary system make it an alternative asset for investment. As more and more investors started investing in cryptocurrencies as an investment portfolio and earned huge profits, this made BTC more and more mainstream as an opportunity to earn more profits.
The profits earned from trading in BTC were much higher than trading in other assets like gold, stocks, bonds, commodities, etc. Thus, several experienced traders risked trading in cryptocurrencies and were rewarded handsomely.
Nowadays, even beginner investors and traders can invest and trade in bitcoins and altcoins using advanced software available on the trading platform, which guarantees daily profits. This exponential growth of the crypto market and increase in global investors of cryptocurrencies made bitcoin an alternative and lucrative asset for investment.
The limited supply of bitcoins in the circulation
Up next, the limited supply of bitcoins in circulation is one of the major factors that is leading bitcoins to become more and more mainstream. It is believed that approximately 21 million BTC can be added to the circulation, and 18 million BTC have already been mined in circulation.
Since the supply of BTC in circulation cannot be increased beyond the specified limit, its value remained unaffected and kept increasing during the pandemic. Many investors successfully forecasted this opportunity and were able to make millions of profits. The scarcity of BTC is the major reason for its high demand in the market.
However, there was a significant fall in the value of FIAT currencies of several countries due to more money printing during the pandemic, and to reserve their money, many converted their FIAT currency into different crypto coins and even made huge profits as bitcoins became more and more mainstream.
Institutional adoption of bitcoins
Institutional adoption of bitcoins around the globe by several multinational companies plays an important role in encouraging people to use cryptocurrencies as a mode of payment. Several private companies even provide discounts and offer payment with cryptocurrency.
Leading companies like Tesla, Amazon, PayPal have invested millions of dollars in BTC, providing assurance to the other investors and small businesses to safely invest in BTC and earn profits in the long run. Many businesses are already providing their customers with the option to make payments in cryptocurrencies.
Many organizations and businesses are converting part of their cash treasuries into cryptocurrencies as an alternative investment option. Also, in the current pandemic situation, people are switching to digital modes of payment, and BTC features peer-to-peer transactions making them an ideal mode of payment.
Acceptance of bitcoins from the government and central authorities
The acceptance of bitcoins by the government and central authorities of many countries has significantly contributed to how bitcoin is becoming more and more mainstream. Earlier, the concept of bitcoins was not accepted by the governments and central authorities because the majority of the population was converting their FIAT currency into cryptocurrencies.
Also, using BTC won’t give central authorities and financial institutions the power to regulate the money that belongs to the people. Earlier, people didn’t have control over spending their money, but with the use of cryptocurrencies as a mode of exchange, financial institutions and central authorities have no control over your money.
Easy accessibility of bitcoins to the population
The dual characteristics of bitcoins make it an ideal digital currency that can be used as a lucrative investment option as well as an alternative mode of exchange. Since cryptocurrencies are widely being accepted by several multinational companies and many are still on the verge of providing their customers with the option to make payments in BTC.
Even governments and central authorities of several countries have accepted cryptocurrencies as a legitimate mode of exchange and a digital currency, establishing a new asset class for investment. People can easily convert their FIAT currency into different crypto coins from any reputable and trusted crypto exchange.
The majority of the population who are using cryptocurrencies believe that cryptocurrencies are better as a lucrative investment option rather than using it as a mode of payment because of its deflationary nature, and combining this is the reason how bitcoins are becoming more and more mainstream.
This is just the beginning of the era of bitcoins and digital currencies. Bitcoins are the first step in revolutionizing the monetary system. The unique features of this digital currency are what make it the most valuable asset for investment.
These are the factors that are influencing the value of bitcoins and how they are becoming more and more mainstream.