Bitcoin is undoubtedly the favourite cryptocurrency investment. From corporate investors to retail ones, all have a soft corner for it. With the highest market capitalization, Bitcoin holds importance like no other. Over the years, Bitcoin has seen a lot of ups and downs. Despite the volatility, investors continue to invest in it for they know the returns are promising when held for a significant period. Now, the real question that arises is – Does Bitcoin price hitting US$100k make any sense? Well, simply put, the answer to this question is quite subjective as it depends on what an individual investor has to say.
To understand whether the price of Bitcoin is justified enough or not, it is important to understand the factors that are responsible for determining its price.
Demand for Bitcoin
As known to many, there can be a maximum of 21 million Bitcoin in the network and more and more investors are doing whatever it takes to purchase Bitcoin. With the increasing demand, what comes along is the increase in the price of Bitcoin. Well, if this is to be accounted for then Bitcoin price hitting US$100k does make sense.
Acceptance of Bitcoin in different countries
Ever since Bitcoin was launched, there has been a constant debate with regard to its acceptance across nations. Though many countries are not in favour of cryptocurrencies, there are some that have opened doors for cryptocurrencies including Bitcoin. As countries continue to ease restrictions pertaining to Bitcoin, the demand for the same is increasing day by day. This is why Bitcoin’s price touching US$100k isn’t that hard to digest.
Institutional Bitcoin adoption
Today, Bitcoin is considered to be a safe asset against market volatility and inflation. Now that a lot of companies are converting their cash treasuries into cryptocurrency, it is quite obvious to see a surge in the price of cryptocurrencies. Well, that seems to be good enough a point to support the rising price of Bitcoin.
Easy public accessibility
For investors, cryptocurrencies serve to be a store of value and a mode of exchange. Initially, they started off as a legit payment method, but with time, they have established themselves as a new asset class over the past decade. Bitcoin can be accessed very easily and the fact that investors consider it to be a better store of value and a hedge against inflation makes it one of the priciest assets that one can own.
To put it in simple terms, if the rising Bitcoin price has put you wary of thoughts and you end up thinking that it is probably too late to invest in Bitcoin, well it is time you realise that this is just the beginning. The coming days would see a surge in prices of not just Bitcoin but various other altcoins too.
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