Bitcoin Aiming For A New All-Time High
From reaching a high value of around $34,625 in January to a new all-time high of $58,000 in February ($58,300 as of February 21st, according to Coin Desk data), pioneer cryptocurrency, Bitcoin, is on a journey to increasing and building on new highs. So what is going to be the next new high price of Bitcoin?
There is only a total of 21 million Bitcoin (nothing more, nothing less) in existence and a total of 7.8 billion people of the world population. That would be about 0.0027 Bitcoin per person if it were to be distributed equally. But then, just like every other currency in existence, it is not. Bitcoin is dependent on the forces of its demand and supply. The more people become aware of its scarcity, and the more the demand rises, the more it keeps reaching new price highs.
Why is Bitcoin Rising So High?
The recent trend in Bitcoin adoption by lots of large corporate entities has validated and erased doubts about the authenticity of the cryptocurrency. It has also triggered mass awareness, adoption, and demand as it is now being accepted in many significant areas of our day-to-day endeavors. And an increase in demand means an increase in scarcity of Bitcoin since its supply is limited. And hence a continuous price increase.
Internet payments big-name PayPal in October 2020 made it public that its users could now buy, hold and sell a range of cryptocurrencies (Bitcoin included) and make purchases with it. Millions of businesses use PayPal for depositing and withdrawing funds, and the announcement was a big push in the wide use of Bitcoin.
Another major boost to the price of Bitcoin and its rising over $50,000 came from Tesla CEO’s announcement. Elon Musk announced a $1.5 billion worth of investment in Bitcoin and proposed a plan to accept the cryptocurrency as a future payment.
Moving For A New High?
Aside from PayPal and Tesla investing in Bitcoin, some major firms like Fidelity also invested. This has led to an increasing acceptance of Bitcoin by institutional and regulatory bodies. Smaller firms are also expected to follow the trend.
The wide acceptance of cryptocurrency and constant scrutiny is causing an increase in demand as more and more people are becoming aware of its scarcity. If things keep going on this trajectory, it is expected that Bitcoin will rise even higher in the nearest future.