Why Bitcoin Will Skyrocket
Bitcoin, the king of cryptocurrencies, sparked a revolution that empowered several people worldwide to dive into the blockchain world and accept it as a viable investment asset. Consequently, BTC is often touted as “digital gold” as its value is considered akin to gold in the crypto space.
Bitcoin has had a significant rally from 2009 but with its fair share of volatility. But thanks to the dedicated community support, BTC always bounced back. Therefore, Bitcoin is still the most popular token for traders, investors, and institutions alike despite the emergence and popularity of other cryptocurrencies.
Considering its price rally, latest technological updates, adoptions and features, let us see why Bitcoin will skyrocket its value in 2021.
Why Choose Bitcoin?
BTC has been the most revolutionary breakthrough of the 21st century. It took the investment world with a storm in 2017 when the prices rose to $10,000. Even though it is the oldest cryptocurrency, Bitcoin continues to be a high potential coin in the crypto space.
Bitcoin went on a furious rally at the beginning of 2021, surging to hit a record high of $64,863.10 on April 14. The fuel behind the coin’s unstoppable rally was institutional adoptions and the endorsements from the big-name investors like Paul Tudor Jones and Stan Druckenmiller.
The digital asset has always been a go-to option for investors as the coin is deflationary. That is, there is a limit to the number of Bitcoins. Unlike fiat currencies, BTC has a limited supply of 21 million coins. Once all the 21 million coins are mined, there will not be any more BTC coins available.
Over 90% of the total supply has been mined, and 18 million coins are already in circulation. As long as the demand for the digital asset continues to grow, Bitcoin’s value will continue to skyrocket in the coming decades.
Is Bitcoin Going To Skyrocket In 2021?
China’s crackdown and a series of tweets by the Tesla CEO have recently created major turbulence in the crypto market. Although the price of cryptos like Bitcoin and Ethereum went down, these digital assets are slowly bouncing back.
Price corrections are not new to Bitcoin, as it was designed to tackle several pressing issues like this in the market. Although BTC cascaded down to a low point, it remains the largest cryptocurrency in terms of market cap ($614,155,106,321, as of writing). As a result, it has rebounded in price and currently trades at $32,790.48.
Bitcoin is a cryptocurrency with massive future potential, with over 5 million users on the network and many more joining, with each passing day. Thanks to the latest network advancement, the Lightning Network technology (LN), Bitcoin will skyrocket its value again in 2021.
The Lightning Network technology is itself considered a game-changer in the whole crypto evolution. The addition of LN to the Bitcoin network has enabled off-chain transactions faster and cheaper, boosting its adoption.
Apart from this, various factors drive the growth of the digital currency. Here are a few reasons why Bitcoin will skyrocket in the long haul.
Don't Miss: Bitcoin Price Predictions
Features That Drive Bitcoin’s Value
#1: Strong Network Fundamentals
One significant reason for Bitcoin price to skyrocket even after its crash is that it has strong network fundamentals compared to other cryptocurrencies. Through its global transaction network, Bitcoin can be securely and seamlessly sent across borders, at a lower cost, without the need for trusted third parties.
As the methods for sending, receiving, and storing Bitcoins continue to improve, the number of active wallet addresses on the Bitcoin network is also rapidly increasing. This is a vital sign of the vibrant and growing financial ecosystem that Bitcoin will initiate.
#2: Increasing Institutional Adoption
Even after Musk tweeted that Tesla is planning to suspend its vehicle purchases using Bitcoin, several other institutions remain bullish on the cryptocurrency. Bitcoin continues to garner support from multiple quarters of the market.
Prominent personalities like Social Capital’s Chamath Palihapitiya and famed hedge fund investors Paul Tudor Jones and Stanley Druckenmiller have come out in support of Bitcoin earlier this year.
Also, established financial companies like PayPal and Fidelity made their moves in this cryptocurrency. Additionally, Square and MicroStrategy have used their balance sheet to buy Bitcoin as they invest their complete trust in the future potential of this digital asset.
Amidst the series of events stemming from Musk’s tweets that are going on in the crypto market, Justin Sun, the founder of Tron (TRX) and CEO of BitTorrent, has entered the market, declaring his support and belief in Bitcoin and its value.
Sun tweeted that he is ready to buy the Bitcoin that Elon Musk is planning to sell, which will be a significant step to preserve the market from the possible liquidation of $1.5 Billion worth of Bitcoin.
Sun has always been an ardent supporter of the coin. He has again made headlines with the recent bid that he won at an NFT auction, which will give him lifetime access to all future Bitcoin Conference events and several VIP benefits at the Bitcoin 2021 conference. It is also the highest-priced Bitcoin NFT in history to date. Sun exhorts his support for the digital currency by stating,
“Bitcoin epitomizes everything that cryptocurrency innovation stands for, and will continue to stay in the forefront of our industry as we enter mass adoption.”
As per Cipolaro, the global head of research at NYDIG, after the recent market crash, “Institutional investors have had a buy-the-dip mentality during these risk-off events, suggesting increasing ease with handling Bitcoin’s volatility.”
Therefore, all these factors expose the interest and trust of inventors in the future potential of Bitcoin as a viable investment option.
#3: World Wide Adoption
Another significant reason for Bitcoin’s price appreciation is its growing adoption as a payment method. There are over 500 Bitcoin ATMs worldwide, and almost 15,100 businesses accept it as a payment mode.
Recently, PayPal (PYPL) announced that it would allow its merchants and users to buy, hold, sell, and accept Bitcoin as a form of payment. Therefore, PayPal has over 350 million users who can buy, sell, and use Bitcoin, boosting its value and adoption in the market.
Apart from PayPal, several other applications like Venmo, Square, and CashApp also accept cryptocurrencies, making the audience for Bitcoin wider than ever.
#4 Recent Updates
As per the latest news from the crypto market, Bitcoin is breaking new ground with its latest Lightning Technology.
Nayib Bukele, the president of El Salvador, recently announced his plan to adopt Bitcoin as Legal Tender in the Central American nation. He firmly believes in the potential of Bitcoin to help Salvadorans living abroad send remittances home.
In a video shown at the Bitcoin 2021 conference, he said, “In the short term, this will generate jobs and help provide financial inclusion to thousands outside the formal economy."
Bukele tweeted that along with providing financial inclusion to thousands by making the Bitcoin cryptocurrencies legal tender, the digital asset will have 10 million potential users boosting its price and value.
Why Bitcoin Will Skyrocket: Experts Speak Up
Experts and analysts predict that Bitcoin will continue to rise in the coming months and will likely hit a value of $100,000 by the end of 2021, making itself a sustainable investment option.
While prominent personalities like Mark Yusko, the chief investment officer of the hedge fund Morgan Creek Capital Management, predicted that Bitcoin could reach a value of $250K within five years. He adds that it is the fastest network in history to a trillion dollars of value.
In a recent interview, Yusko said, “What people miss is this is a technological evolution of computing power that isn’t going away. It is a powerful computing network that is going to become the base layer protocol for the internet of value.”
With the worldwide adoption of cryptocurrencies as a mode of payment and a valuable asset class, the price of Bitcoin will keep increasing. Furthermore, as digital assets are endorsed and used by corporations and even government departments in their daily functions, Bitcoin will gradually become an inevitable part of the future.
Therefore, with the array of institutional interest, increasing price rallies, worldwide acceptance, adoptions, and numerous other network developments, Bitcoin will likely skyrocket again, reaffirming its position as a valuable investment asset.
eToro – Best Platform to Buy Bitcoin
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.