Bitcoin is the most popular virtual currency, which at the end of the year reached its ATH, i.e. the highest value in history – 28,000 dollars. The sharp increase in cryptocurrency prices is explained primarily by investments from large financial institutions. Is investing in Bitcoin a good idea?
Bitcoin and the global pandemic
Bitcoin (BTC) is a cryptocurrency that was created in 2008 as a response to the economic crisis, and the consistently rising prices clearly show that the cryptocurrency market, despite the unfavorable economic situation, is still doing its job.
Cryptocurrency exchanges are independent of the government and central banks, which seems to ensure stability and security, which is why many people give up bank deposits looking for alternative solutions. Buying cryptocurrencies seems to be the safest option – the dynamics of price increases is as good as the lack of control over the virtual money market.
If you are interested in buying Bitcoin for USD, Euro or GBP and you want to learn more about it, we encourage you to read the article:
The increase in Bitcoin’s value is certainly also due to the spring halving, for which the prize was reduced from 12.5 BTC to 6.5 BTC. By slowing down the speed of creation of coins, fewer coins enter the market, which translates into limited availability of the currency, and the lower the availability of Bitcoin, the greater its value.
Why is it worth investing in cryptocurrencies?
The rapid growth on cryptocurrency exchanges is explained by institutional purchases, which had a large impact on the current boom. The financial giants appreciated the positive reports and forecasts for the future as well as the still untapped potential of the cryptocurrency.
Buying Bitcoin is certainly a good investment, and the cryptocurrencies themselves are compared to gold, with the difference that the virtual currency is also full of mobility. Investing in cryptocurrencies is a response to the global economic crisis and rising inflation, which has serious consequences. Forecasts for 2021 assume a further increase in Bitcoin’s value, predicting that its value will remain at around 50% of the current state, so buying cryptocurrencies is still a good idea – it’s best to do it in moments of decline.
The article was written in cooperation with the bitcoin-exchange.uk portal, where you will find many interesting articles, curiosities and information for beginners and advanced users interested in the cryptocurrency and exchanges market.