Update On Bitcoin

Bitcoin came into existence in the year 2008, developed by some pseudonymous individual or group. Bitcoin was the first cryptocurrency that got so much popularity and succeeded in all digital money experiments.

The monetary policy of is implemented by a unique blend of cryptography, software and financial incentives instead of taking help from trusted third parties. The bitcoin network is powered by a technological phenomenon which is called the blockchain. In this cryptocurrency ecosystem, there are miners who ensure the security of the network and drive the bitcoin network and the stakeholders.

Presently, the face of the Bitcoin has changed a lot and it has grabbed the attention of the users at high point.

In recent years, the price of bitcoin is increasing like fire. But does anyone know what the reason behind this huge increment in the price of bitcoin is? There are a variety of factors that influence the price movement of bitcoin and actually helps it to get huge increments.

When the investors believed that the price of bitcoin would not go further, it broke the belief of investors and started to move upside. The payment applications such as Paypal is allowing people to easily access cryptocurrency.

Also Read:- How to Make Your Own Cryptocurrency Coin Like Bitcoin/Ethereum

Previous Resistance

In recent time, bitcoin has seen immensely volatile peaks. The last peak in bitcoin was in June 2019, and it was around $14,000. At that time, bitcoin experienced a tough resistance, but it recovered through it. If at that time, bitcoin has broken that resistance then it would have induced a bull market. But unfortunately, it failed and decreased to a low point that was around $3,800.

After this event, it was again tested in October, and the resistance point falls down. On the 4th of November, bitcoin pushed itself and crossed $14,000 mark and continued to go higher. It is so vital because the next resistance point of bitcoin was it’s all own previous all-time high, and that was $20,000.

Rush to Safe-Haven Assets and Inflation

One more reason behind the rising price of bitcoin is the increasing rate of inflation of the U. S. dollar. The average rate of inflation is 2%, but in recent time the rate of inflation is increasing, and the US dollar purchasing power is decreasing.

With the recent package, the united states added about 2.4 trillion dollars to the economy of the united stated. This is a worrying fact that inflation is rising and the purchasing power of the dollar is decreasing.

To hedge against the increasing inflation, various investors have withdrawn from the dollar and purchased assets which in the past have held some value or at least appreciated in value. People who convert their dollars into assets to avoid the volatile market or the inflation, those are the ones that are rare or negligible volatile. These less volatile assets include stock in those sectors which are less volatile, bitcoin more recently and precious metal like gold, silver, platinum.

Bottom Line

Bitcoin has become a great way of making a good profit in cryptocurrency because of its day by day increasing value. If you haven’t started investing in bitcoin, then reconsider your decision once again. Maybe you are letting go of a good opportunity.

Originally published at http://synarionit.wordpress.com on December 9, 2020.

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