Even if you aren’t into cryptocurrencies, you have probably heard about Bitcoin. Bitcoin is the first virtual cryptocurrency that has become widely known; it has popularised blockchain technology and is also the best performing cryptocurrency in the last decade. What’s more, in 2021, Bitcoin traded above $50,000. This was an unprecedented event that happened due to the bullish cycle that began in 2021. But what are the other reasons that make Bitcoin a valuable cryptocurrency a decade after its initial release? In this article, we compiled a list of the main factors that have pushed the value of Bitcoin.
As we mentioned earlier, Bitcoin was the first cryptocurrency that was invented that had a decentralized, peer-to-peer based payment system, where the BTC transactions are being processed. The blockchain network is one of the main reasons why Bitcoin, and any other cryptocurrency that was subsequently released, was able to succeed.
The network functions seamlessly, and the BTC transactions are processed within minutes, which made Bitcoin popular for international payments. The transaction fees are very low, and also miners could easily join the blockchain network and mine on their personal computers.
Another reason why it was popular for users is that miners could vote on the possible changes on the platform, and their identity is anonymous, while they have a complete overview of the data on the network. Furthermore, when other altcoins like Litecoin and Bicton Cash were launched, Bitcoin already had the largest market cap and a significant user base.
The Popularity of Online Trading
One of the reasons why it was able to achieve such growth was the accessibility of online trading sites. This meant that users that weren’t able to mine or they wanted to invest in Bitcoin, and other cryptocurrencies had an opportunity to choose from a great range of online exchange sites. Of course, the number of exchange sites has skyrocketed in recent years.
For instance, on bitcoin-power.com, you can trade on an AI-driven trading system. This means the trading platform will perform the trading functions automatically. Hence, beginners can start trading without special trading skills or extensive knowledge about trading and Bitcoin. The minimum deposit for investors is $250. Plus, you can potentially earn up to $850 on a daily basis during high market volatility. It’s also worth noting that the system is backed by twenty tier-one brokers.
What helped position Bitcoin as a valuable cryptocurrency and distinguished Bitcoin from other altcoins are the bull runs. After each bull cycle, the price of Bitcoin grew significantly, and it attracted the attention of numerous investors. When it comes to the last bull cycle, which is still in full force even in 2021, Bitcoin has achieved a record-breaking price of $57,469.95 in February.
But also, last year, after the halving in May, the price was steadily rising month after month. So, by the end of 2021, the price had already doubled and hit $20,000. This amazing bull run was one of the main reasons why a lot of institutional and individual investors were looking to support Bitcoin. What’s more, its market cap also surged dramatically, and it reached $1 trillion.
Another factor that makes Bitcoin even more valuable is that the cryptocurrency is very rare. Each altcoin has its own limited supply, but when Bitcoin was initially released, Satoshi Nakamoto, the creator of Bitcoin, has capped the supply of BTC at 21 million. This only cemented the status of Bitcoin as one valuable and rare asset. Today it is even considered as a safe haven asset, which means that in the long run, a lot of investors are looking to get BTC because they think it is as precious as gold.