While the COVID-19 pandemic continues to be the downfall of the global economy, the crypto market continues to record gains. Many cryptocurrencies have emerged to cater to the high demand for Bitcoin and other cryptos because of this pandemic.
Cryptocurrency market funding powered by Bitcoin’s growth just surpassed the $1 trillion mark. From this significant growth, Bitcoin is responsible for approximately 69% of the total market share.
Moreover, nearly six months ago, Bitcoin’s price was $7800, and currently, the price is at 32500, which is roughly a 400% hike in the price. Ethereum, the second-largest cryptocurrency in market funding, rose over 1,000% in one year’s value.
Notably, most cryptos have been rising, and investors are raising eyebrows requiring answers. Below are significant reasons for the price hike of cryptocurrencies. Read on.
Cryptocurrencies, particularly Bitcoin, are now regarded as a refuge benefit against market instability and inflation. The present public and financial climate also create a situation where people hold less cash and stay confined against market swings.
Lately, many public companies are creating a tendency to exchange their cash reserves into cryptocurrency. For instance, Square, an American payments company, purchased Bitcoins worth $50 million. Subsequently, Microstrategy also changed $425 million worth of cash assets into Bitcoin, regarding it to be an ideal store of value.
PayPal & Cryptocurrencies
PayPal publicized In October 2020 that it would be introducing cryptocurrency trading features on its platform.
The launch involved four major trading crypto; Bitcoin, Ethereum, and Litecoin. Furthermore, PayPal publicized plans to enable making transactions through cryptocurrencies.
PayPal has 350 million users who can now embrace crypto as a mode of payment. Also, its 30 million dealers will prefer getting their fees in the method of crypto.
PayPal was among the detractor of cryptocurrency as a maintainable currency. But now it is among the most prominent names adopting the trend. Including PayPal’s support, the demand for the asset class is growing, thus according to its rise in price.
Easy Accessibility to Public
Cryptocurrency is a versatile digital currency as a store of value and a method of exchange. As it starts to gain approval as a credible payment model, it has set itself as a new benefit class for the past decade.
Even though the public is reluctant to use it for transactions, many people want to exchange their cash into crypto. They are confident that its deflationary character guarantees a better store of value and a cover against inflation.
Because cryptocurrency is becoming more easily reached by the public, additional retail investors crave a share of the asset class and are even ready to pay more.
Do not let the rising prices in the crypto market make you think it is too late to invest in cryptocurrencies. Instead, convert your cash treasure instantly while you can, as this is just the beginning of crypto taking over the finance world. Very soon, the cash days will be lost, forgotten, and never to rise anymore. The world is steadily but firmly turning crypto!