*This blog post is my personal opinion only and may contain affiliate/referral links.
Despite recent setbacks, Bitcoin is still popular among investors and traders. Bitcoin’s all time high in the range of $60K has plummeted to mid to high $30K at the moment. This has scared some but at the same time this has allowed others to gain entry on a more affordable price. The leap of Bitcoin is really extraordinary considering it is only on the $9K range exactly last year.
Where do Bitcoin go from here? It is really hard to tell, considering the high volatility of all cryptos. However, there are observable actions from investors and busineses that may indicate how the future of crypto may shape up.
Institutional Investors are Buying
Institutional investors have come in the bandwagon of Bitcoin buying. We are talking banks, credit unions, insurance companies, hedge funds, mutual funds, financial advisors and others joining forces to pool their monies and purchase Bitcoin as an investment.
This is an ongoing shift to recognition of Bitcoin and cryptocurrency in general as an investment choice that they can offer to their large clientels. This market has seen many of their investors also adapt and include cyptos to their portfolio. What used to be a stock and bond dominated market, investors are now presented with a choice for cypto.
Businesses are Adapting
Bitcoin as a mode of payment are being accepted by many businesses now. From credit card companies to retail businesses, we see a list that continue to grow because they want to give their customers an alternative way of payment.
Giving them the option to pay with Bitcoin and other notable cryptocurrency like Ethereum also shows that these businesses are keeping up with their competitors. Paying with Bitcoin has many advantages too: peer to peer payment without approval from any authority and accessibility, just to name a few.
Scarcity accounts for limited supply of Bitcoin, 12 million to be exact. With this fact, it’s easy to visualize how there’s value with every Bitcoin that has been produced. As of February 24, 2021, 18.638 million bitcoins have been mined, which leaves 2.362 million yet to be introduced into circulation (Investopedia).
Just like a rare precious antique, Bitcoin rise in price will correspond to its rise in value. There are debates on what would happen if all the Bitcoins has been mined, but as it stands right now, the supply is being exhausted almost too fast to its extinction
Thank you for reading.