Bitcoin has been in the limelight a lot as of late. From talk of Dogecoin as an up-and-coming cryptocurrency to the rise of Bitcoin from a price crash in early 2020, we feel confident those reading this and beyond are familiar with the concept.
Add into the equation support from leading voices like Michael Saylor and Mark Cuban, and there is no surprise that the price of Bitcoin has risen exponentially in recent months. So, the question that many have found themselves asking; will Bitcoin reach $100,000 in 2021?
With a current market capitalization cost of around $1.15 trillion, this is certainly a question on many people’s minds and one we all want the answer to! Read on for more.
What Is Bitcoin?
For those who are somewhat unsure of this present-day phenomenon, this one’s for you! Bitcoin is a form of digital currency that was first introduced to the world in 2009 by an anonymous source using the pseudonym Satoshi Nakamoto.
Deemed the first-ever cryptocurrency to exist, it is now one of the thousands created each day but is undoubtedly the biggest and the one that significantly dominates the market.
A selling point of cryptocurrency is that it is not centralized by any of the big banks globally. Funds are instead transferred between peers without the need for a middleman of sorts to oversee the transaction.
What Is Causing a Price Rise?
There are various reasons as to what could be contributing to the increased price of Bitcoin, and of which, is continually growing and contributing to the price. Generally speaking, the more people who interact and buy Bitcoin, the higher the price becomes. With encouragement from the likes of Cuban during public appearances, there is no doubt that people have taken heed to these words and invested.
Add into the equation organizations like PayPal now openly and publicly accepting Bitcoin as a form of payment. You can easily see how the hype surrounding Bitcoin and cryptocurrency, in general, has reached a new high.
Furthermore, the opportunities to buy Bitcoin have grown dramatically in recent months. Companies like Paxful offer more chances for interested parties to get their hands on some, albeit virtually. Increased chances to buy Bitcoins have also been rumored to contribute to the increased price of Bitcoin; if more opportunities crop up, the price is indeed going to continue to rise.
Many people during the pandemic have been seeking ways to protect their assets against an economic crash. With many investors, companies, and members of the public concerned about the increase in inflation because of the pandemic, they turned to Bitcoin and cryptocurrency as a means of protecting themselves against this.
Following support from companies like Visa and JP Morgan – but to name a few – there is no doubt that support for Bitcoin and cryptocurrency will keep rising. More companies could also follow suit, so stay tuned!
As we begin to emerge from the grips of the pandemic, it will be intriguing to see how this once social concept will continue to grow to new heights.