If you look at the change in Bitcoin price rate since 2018, your first guess would be that Bitcoin growth is a goner.
But there’s no point rushing with panic conclusions as we are going to explain 7 reasons why Bitcoin will rise again.
Today, Bitcoin capitalization reaches over $110B, while it was $337 at the peak of its price rate — in December of 2017. Both of these numbers are too low for the maximum Bitcoin cap. That is because the total amount of all money worldwide is $90 trillion. Only time will tell which part of these capitals will move on to Bitcoin and other cryptocurrencies. According to the billionaire-experts Michael Novogratz and Tim Draper, cryptocurrency capitalization may reach $5 to $10 trillion in the following years.
2. Bitcoin is not a bubble
Bitcoin critics like to assert that cryptocurrency is out of thin air, and that its real cost equals zero. That’s alright. Let them address their statement to the miners who purchase expensive hardware and pay out impressive electricity bills.
Bitcoin is made in such a way that the mining difficulty constantly increases. Nowadays, the average cost price of Bitcoin mining is around $6000. However, this doesn’t stop large companies from investing millions of dollars in the launch of new mining farms anywhere where they can find access to cheap electricity consumption.
3. Market regulation
If you look at the popularity of using “Bitcoin” word in search queries throughout several search engines, you’ll notice there’s been a decreasing trend since 2018. Sure, it’s not at the tip of the tongue among the Internet users due to its fall this year, however it’s getting mentioned more by the important authorities of various states. The best confirmation of this is the fact that the issue of cryptocurrencies was raised during the G20 summit in March of this year. There, the countries have decided to develop international rules of cryptocurrency market regulation.
This is important given two reasons. Firstly, the leading world governments are not planning to enforce total ban on cryptocurrencies. Second of all, large investment foundations with budgets of tens and hundreds million dollars are prepared to enter the market once the clear terms of service have been agreed upon.
4. Digital Gold
Bitcoin is not being called digital gold for nothing. Humanity has long sought a convenient way of storing value, and unlike the precious metal, Bitcoin doesn’t need bank vaults or freight transport. With cryptocurrency, millions of dollars can be stored on a simple flash drive. And in order to send all this money to another part of the world, you would only require several minutes and the Internet access.
Now, we are not saying that people will start selling gold for Bitcoins. But the point is, some private and legal entities have been purchasing cryptocurrency as alternative means of storing their assets for a while now.
5. Bitcoin — the primary unit of transactions
If you were to look at the cryptocurrency market, you’d see that more than 40% percent of the funds are in Bitcoin. Also, it is precisely the first cryptocurrency that is the most common in terms of payment for goods and services. Some cities even accept it for paying out taxes. All this leads to a similar pattern with how the US dollar is used in international transactions. Bitcoin is used in the same regard in cryptocurrency transactions.
The Blockchain technology appeared long time before Bitcoin, but it is exactly the first cryptocurrency that enabled the blockchain to unveil all of its abilities. These days, blockchain is being implemented in logistics, workflow, payment systems, and other areas of expertise. Blockchain is being discussed by coders, scientists, bankers, and politicians, comparing this technology to the invention of the Internet.
Nevertheless, many tend to forget that the most popular and protected blockchain network is...Bitcoin. No matter how many times governments and corporations may develop their private networks, Bitcoin has been and will be the blockchain by the people, for the people. Now, some strong teams of independent developers are working to improve the Bitcoin network. The most well-known among these are Bitcoin Core and Blockstream.
7. China will allow cryptocurrencies
Until December 2017, China had been the fastest growing crypto country. However, the authorities decided to regulate this development and eventually they have banned ICOs and cryptocurrency trades with it. The Chinese government has realized the errors of their ways and are now preparing to return to this part of the market.
These conclusions were made after the notions that Bitcoin mining is still not forbidden in China, given how China is the Bitcoin mining leader of course. Furthermore, the Ministry of Industry and Information Technology of China has started to publish their own cryptocurrency rating. On the other spectrum, the China Banking Regulatory Commission has proposed to legitimize the cryptocurrency activities.
In the end, we would like to remind you that for almost 10 years of Bitcoin existence, it has already lived through several take offs and falls, after which its cost always moved on to the new stage.