The cryptocurrencies. market is booming despite the global pandemic across all major economies on the
Many crypto startups have sprung up in space during this outbreak to meet the growing demand for Bit coin and similar cryptocurrencies.
For example, coin switch Labor recently announced a series of $ 15-15 million (Rs 109 core) fundraisers from major global fantasy investors such as Rabbit Capital, Paradigm, Sequoia.
Just six months ago, a bitcoin was worth around 600,000, and today bitcoin is trading at ₹ 25,000,000, an increase of around 400. Aether, the second-largest cryptocurrency by market cap, broke a new high of over 00 1,000,000 and 1,000 of its value in one year. Increased to
Likewise, many cryptocurrency prices are rising and investors are wondering why? Here are five reasons why cryptocurrency prices are rising.
Institutional adoption
Cryptocurrencies, especially bitcoins, are now seen as a safe haven from market fluctuations and inflation. The current social and economic climate also creates a situation where people have less money and protect themselves against market conflicts.
Recently, there has been a trend that state-owned companies convert their money into cryptocurrencies.
Since then, many companies have followed suit. The confidence of corporate giants in cryptocurrencies has increased its potential as a currency and value reserve.
PayPal and cryptocurrencies
In October 2020, global digital payment company PayPal announced that it would introduce cryptocurrency buying and selling features on its platform.
The launch included four major trading currencies, Bitcoin Cash, Bitcoin Cash, Ethereum, and Litecoin. PayPal has also announced its intention to allow transactions using cryptocurrencies.
PayPal is known to have 350 million users who will now be able to use crypto as a payment method. In addition, 30 million merchants will have the ability to receive crypto payments.
PayPal was one of the critics of cryptocurrency as a permanent currency. He is now one of the biggest names on the bandwagon. With the support of other players and PayPal, the asset class is in high demand, which could lead to an increase in its prices.
In addition to PayPal, the company has another popular payment platform, Venmo, which will expose 40 million users to payment fraud. While these platforms are new to crypto, some other platforms are already broken.
Apple was one of the critics of cryptocurrency as a sustainable currency. He is now one of the biggest names in the bandwagon. With the support of other players and PayPal, the asset class is in high demand, which could lead to an increase in its prices.
In addition to PayPal, the company has another popular payment platform, Venmo, which will expose 40 million users to payment fraud. Although these platforms are new to crypto, some other platforms are already creating a crypto
While many private investors are trying to adopt cryptocurrency as a medium of exchange, many governments are also trying to regulate the market.
Many countries like Japan, USA, Germany, etc. Has taken a positive stance on cryptocurrencies.
Bitcoin carrying driving shortage
It is not known that the supply of most corrupt currencies in the market is limited. Bitcoin is one of them. The third bitcoin this year was Halong.
The Bitcoin network is a major event that takes place every four years.
The bitcoin network works because it brings new bitcoin to the market through a process called bitcoin mining. Wikipedia miners did this by checking bitcoin mining blocks which are the only groups of bitcoin transactions.
Every 10 minutes, a miner who can verify a block of transactions and add them to the bitcoin network is rewarded with a fixed amount of bitcoin.
Currently, the reward is 6.25 BTC per property block mining. But that reward is reduced by about half every four years, or after mining every 210,000 blocks. Reducing this trend of bitcoin block rewards to 50 every four years is considered a bitcoin halving.
It also doubles the stock-flow ratio (total currencies available: total currencies in circulation).
Halling is one of the most critical factors contributing to the value of bitcoin.
Since there are only 21 million bitcoins in total, the circulation of market currency is less with decreasing wages. And as more and more people realize the scarcity of assets, the higher the demand, the higher the price.