The digital currency market continues to witness an all time high despite the current pandemic wreaking havoc over significant economies across the world. Most of crypto startups now have emerged in space during such pandemic to cater an ever-increasing Bitcoin demand by coming up with new and interesting things like fun token.
Bitcoin when adopted by the major retailers or investors will cause in driving its price upwards. One major booster of price comes from the financial instruments that allow big institutions like banks invest in the Bitcoin without buying this currency.
Supply & Demand Chain
The amount of Bitcoin traded over exchanges represents the small percentage of its total supply in the circulation. As most of the Bitcoin is generally held as savings, this is not accessible for purchase. An acceptance of the Bitcoin by its users is another aspect that affects its rate. Popularity of this currency can raise prices, whereas the low demand for currency can lower its value. The higher demand & reduced supply can drive up the bitcoin price. There are many people, investors, and corporations started to utilize Bitcoin as one way to conduct transactions online. Looking at the acceptance of Bitcoin across the world, it’s fair to expect the prices of Bitcoin to go ahead even in the future.
Since investors rushed to safe their money by investing in gold during such pandemic times, many bet on less conventional Bitcoin. Both the classes of investors have gained. But, investors who have risked their wealth on BTC were handsomely rewarded, 4 times much higher than what investors in gold have gained.
Many investors across the world are trying to invest in this digital coin rather than gold. But, such development will happen over a period of time, considering its large market capitalisation.