Despite the worldwide epidemic causing havoc on all major economies, the cryptocurrency industry has continued to thrive.
This epidemic has given rise to many new crypto companies to meet the rising demand for Bitcoin and other popular cryptocurrencies. The market value of cryptocurrencies has just surpassed the $1 trillion mark, thanks in part to the development of Bitcoin. With Bitcoin leading the pack, it’s no surprise that it accounts for 69% of the overall market value. The rise in the price of Bitcoin may be attributed to a number of different factors.
The rise in inflation in numerous wealthy nations, including the United States, is one of the primary causes. Because of the inflation, many individuals who traded in USD began to embrace cryptocurrencies such as Bitcoin. As a result, the value of BTC has risen considerably. Another factor that has caused BTC prices to surge is the growing demand for crypto casinos. Because of pandemics and rising prices, many individuals began to look for ways to have fun staying home. One option for those individuals was to gamble at bitcoin casino Winz.io, which enables gamblers to play a variety of casino games using the BTC payment mechanism. According to estimates, the worldwide gambling business will approach about $565 billion by 2022, which is nearly equivalent to $68 for every individual on the globe.
From the other perspective, cryptocurrency already has an established partnership with iGaming. Currently, around 50 percent of transactions using Bitcoins are somehow tied to gambling. Many Gamers have been driven to bet online because of the Covid-19 outbreak. At first, many of them were dubious about gambling from home, but then they learned about the multiple advantages of doing so while using cryptos like BTCs. In reality, owing to Bitcoin’s resiliency in 2020, the epidemic may have expedited the widespread use of cryptocurrency. It was a perfect storm for the fast ruse of cryptocurrency-backed online gaming in 2021. It is also worth noting that many investors believe the cryptocurrency will be able to retest or perhaps surpass its previous all-time high price of $20,000 in the near future. As a result of all of this speculation, the value of Bitcoin has risen.
You can find out more about the recent expansion of Bitcoin in this article.
Reasons For BTC Price Skyrocket
While annual inflation is at 2%, recent stimulus expenditure is expected to significantly raise inflation and reduce the buying power of the currency. The latest stimulus programs in the United States have increased the economy’s value by roughly $2.4 trillion. Because of this, many people are concerned about future declines in the buying power of the dollar and increases in inflation. Many people have fled the dollar in order to protect themselves from growing inflation by investing instead in assets that have traditionally retained their value or even increased in value. People tend to change their dollars in PayPal to scarce or less volatile assets in order to escape inflation or turbulent markets. Assets that are considered “safe havens” include precious metals, equities in less volatile industries, and, more recently, Bitcoin.
As already mentioned in the beginning, one of the main reasons which caused the Bitcoin price to skyrocket is the increased demand for crypto casinos. Because of the increased inflation and the fact that people no longer reckon USD as a safe haven, the world started to adopt cryptocurrencies. And as BTC is the prominent cryptocurrency among others, many people decided to embrace it. Through the use of cryptocurrencies, one of the opportunities of gaining more BTC is gambling in crypto casinos, which allows customers to generate more digital money.
The increasing acceptance of Bitcoin as a payment mechanism is another factor driving up the price of the cryptocurrency. Earlier this week, PayPal (PYPL) stated that it will enable its customers and merchants to buy and sell cryptocurrencies, keep them, and use them as a form of payment in the near future. As soon as this information broke, the price of Bitcoin shot up. At this rate, nearly 350 million PayPal customers are allowed to use BTC through their accounts. Also, PayPal has well over 20 million active businesses that are now able to take cash.
In addition to PayPal, there are other ramifications. Venmo, a widely used payment app, is also owned by PayPal. Due to Venmo’s 40 million active users, it’s easier than ever to send Bitcoin and other cryptocurrencies via the payment processor. There are a number of additional services that enable its users to purchase, trade, and keep cryptocurrencies while PayPal and Venmo are more recent additions to the crypto world.
Is that all?
As previously said, Bitcoin is increasingly being portrayed as a safe-haven asset. It’s becoming more common in today’s society and economy to store less cash and be protected against wild market fluctuations. As a more solid store-of-value, publicly listed firms have begun to convert their cash in their treasuries to Bitcoin. Several firms have followed suit since then. Because of their trust in Bitcoin, these businesses and their investors have given Bitcoin more credibility as a store of wealth and safe-haven asset.
Two of Bitcoin’s design qualities have a significant impact on its price growth today. The supply of other precious items isn’t limitless, and some of them can be synthesized. The second is halving, which is a procedure that’s built into Bitcoin. As an incentive for processing transactions, Bitcoin releases and gives Bitcoin to miners via an internal escrow system. Every four years, the amount of money you may get is halved as a reward. Each halving reduces Bitcoin’s inflation rate by half, while also doubling the currency’s stock-to-flow ratio. The number of Bitcoins that may be in circulation at any one time will be set at 21 million after that. Even while it has mostly tracked its stock-to-flow ratio, Bitcoin’s price might reach $100,000 by the end of 2021 if this trend continues.
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