Why Cryptocurrency Prices Keep Rising!

The digital currency market and cryptocurrency prices have risen and seen a good boom despite the Covid lockdown in the market. Many digital currency startups have also entered the space in pandemic times to offer a rising demand for coins like BTC and others.

For example, groups like CS Kuber also announced the rising price of the coin, reaching $15 million. Several well-known fintech investors have similar views on this. As a result, the technology valuation appeared to be gaining momentum and the market’s revenues have also grown strongly.

In the digital coin list, we have seen that ETH is the second largest digital coin in terms of money and market cap.

On the other hand, we still see Bitcoin high with more than $65,000 in the market at this point. The value of other coins has also increased recently and will continue to do so.

Here we will review the details of cryptocurrency prices while reviewing the important things you should know before entering the Bitcoin bull market for a detailed study.

Institutional Adoption

The first reason for the rise of digital currencies, mainly BTC, is the coin’s wide institutional adoption. It is considered a safe, decision-based investment against issues such as inflation and volatility. In addition, the current economic and social changes in the ecosystem will bring more situations for people who do not have enough cash and thus hedge against inevitable market fluctuations.

Recently we have seen the trend go up as certain publicly traded companies are now busy converting their cash into digital currency. One of the companies, Square, the top company to invest in digital coins, remains the leading payments company to enter a digital coin. The company pumped $50 million into BTC. It soon brought the publicly traded company a whopping $425 million in cash earnings in BTC.

PayPal and digital coins

In early 2020, we saw that the leading digital currency payment platform known as PayPal also announced the launch of the digital currencies when it comes to buying and selling the features on the platform. The launch came with a few major currencies traded, including BTC, BTC Cash, LTC, and ETH, to name a few.

However, PayPal has not announced that it will trade Bitcoin and other digital coins. The company is known for its 350 users worldwide who are knowledgeable enough to adopt digital coins as a payment option. At the same time, we have around 30 million resident merchants willing to receive payments in digital coins. PayPal can also help several critics of digital coins as a sustainable currency.

One can tell that it is the top names that are jumping on the digital coin bandwagon. The rise of such players in the digital currency market has increased demand for many more asset classes. In this way, it has greatly contributed to the price increase.

Apart from the company known as PayPal, we can also find certain companies that now own other well-known payment platforms like Venmo. It is planned to suspend the 40 million users of all crypto payment. These platforms can launch new digital currencies, and some of these platforms are known for making digital payments much broader and more robust.

Many private investors are now trying to adopt digital coins as a medium of exchange, and many state-owned companies are now trying to regulate the market. Also, we can see many more nations including USA, Japan and Germany to name a few interested in taking their positive step towards virtual currencies.

the scarcity

The next reason why digital currencies are increasing in value is that the supply of these coins is limited. With the scarcity in the market brought on by the BTC halving, most digital currencies are also functioning similarly. That way it becomes a limited supply affair.

We have seen the Bitcoin halving process proclaim this fact to the world. Bitcoin mining therefore only works until the coins are spared. We saw that about 19 million of the coins were mined out of 21 million of the same. There has been around 90 percent of mining for Bitcoin. Also, it takes no less than 10 minutes to mine a coin, mainly when we talk about bitcoin.

Easy accessibility

The following reason to witness the rise of Bitcoin and other digital coins in the market is that you can easily access the top coins. It has started to get a lot of attention before the payment option when setting up the new asset over the past decade.

Even in the public domain, some things are unwilling to use different transactions. Hence, we have seen many platforms launching their platforms to make money in space with the help of crypto investment accessibility.

Article on cryptocurrency prices and permission to publish here provided by Jean Nichols. Originally written for Supply Chain Game Changer and published on January 26th, 2022.

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