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Why the Bitcoin Market is about to Boom
| Published: 15th November 2022 22:30 |
This digital currency has been rising since its creation in 2009 by Satoshi Nakamoto. Over the thirteen years, this electronic currency has been around, and the Bitcoin network has been experiencing a boom moving from a digital currency to a trillion-dollar industry. This virtual currency has an underlying technology known as the blockchain, a publicly distributed ledger that records and validates transactions. You only need to get the recipient's Bitcoin wallet address, and you can send this digital money to them instantly through the Bitcoinprime from the comfort of your home Because of this blockchain technology, transactions are fast and less costly.
The use of this digital money varies from one country to another. For instance, El Salvador and the Central African Republic have legalized this virtual currency as a legal tender. Panama is still in the process of making this digital money a legal tender. Moreover, there is an immense rise in the use and price of this virtual asset for a few reasons. Here is why the Bitcoin market is about to boom.
Institutional Adoption
People now consider this virtual currency a haven against market volatility and inflation. Fiat money is subject to inflation as it does not have a limited supply compared to this electronic currency which has a hard cap limit. The public will only be able to mine 21 million Bitcoins, and currently, 2 million Bitcoins are in circulation as the public has already mined 19 million Bitcoins. This limited supply of this electronic money makes it a hedge against inflation because its value increases due to increased demand.
This virtual money does not lose its value over time compared to fiat money which loses its value over time. Therefore, public and private institutional investors are converting their cash treasuries into this digital money. These well-established companies and big corporations have tremendous confidence in Bitcoin, contributing to its price increase.
Cross-Border Transactions
People globally use this digital money to transfer, especially when sending remittances. We all know that sending money back when you work abroad can be tiring and overwhelming, especially when transacting with fiat. Many intermediaries are involved when transacting with conventional money, making transactions more costly and taking a lot of time.
People are now opting for this electronic money as there are few barriers to entry, and transacting is very easy. There are no cross-border barriers that limit people from transacting Bitcoin.
Moreover, this digital currency makes it easy for people to conduct business beyond their borders. If you want to source a product or service in another country or continent, you can, as this digital money promotes instant settlements. So, this electronic asset helps one to expand their borders and transact easily. This ease of transacting beyond your borders also contributes to Bitcoin's price boom.
Recognition by Governments
When this digital money first came up, many governments did not agree with the currency as it lacked the required regulation. This decentralized digital money means no financial institution or government can regulate or manipulate the currency. The government holds much power over fiat currencies as opposed to Bitcoin. Therefore, the government will also have to earn this virtual currency like everyone else.
On the other hand, the popularity of this digital money has increased immensely, which the government cannot ignore. For instance, the Japanese government had no option but to recognize this digital money. Also, the government of El Salvador even made Bitcoin a legal tender in the country.
The Takeaway
This digital money has been gaining more acceptance globally, which is a result of the above factors. This virtual money presents its users with many advantages; hence the world is slowly moving to this digital money.
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