For a long time since its inception, bitcoin has been a trailblazer, household name as well as a conversation starter in the world of cryptocurrencies. This is further supported given that giant organizations like Tesla showed interest into the crypto market by announcing an intended purchase of the bit coin. It is thus not absurd to arrive to the conclusion that bitcoin dominance even into the future is assured.
Market analysts cite bit coin as a potential gold competitor as well as a safe haven for assets. Also quoted to be “better than gold” in some ways. Bitcoin is far different from gold because unlike the former, whenever there is inflation on the price of gold, people will be prompted to mine more gold. This is not true for the latter. In crypto currency, there is a limit. Currently set at 2 Million with more than 18 million in the circulation already, according to CNBC.
Investment for institutions
Inflation is expected with institutional investors interest on the bit coin significantly increased. Despite concerns over climate, growing interest has been expressed in investing in the bit coin among other crypto currencies. Tesla has also shared interest to invest with bit coin in the future with some declaring specific percentages of their assets in the bit coin.
Most recent surges surrounding these declarations have seen the bit coin trade from$34,880 to $40,000 in just about 24 hours. Since 2021, amidst wild swings a 30% and more rise has been witnessed having an all-time high of $64,829 in April 2021.
In the past, investment institutions handled the desire to implement bit coin into their portfolio skeptically and with caution. This is no longer true since such institutions have been witnessed to try to figure out how they can offer bitcoin to their clients in a safe manner. Bitcoin Prime trading platform is one such platform that offers a revolutionary way to invest in crypto in 2021. With a trading system that is tested and proven to offer the most lucrative way to trade crypto. In bitcoin prime, the entire bit coin process is automated and thus the general public can trade within.
Data from PayPal showed that since their implementation of bit coin in their pay systems, more users who used PayPal logged into their respective accounts twice as much as before.
Also, by the end of the year 2020, an approximate $15 billion of assets listed under institutions had been allocated to crypto currency class of assets. Compared to $2 billion at the end of 2019. On top of this, the Grayscale Bit coin trust, which is the sole route through which many institutions get exposure to bit coin, has witnessed assets increase by 900% in the year 2020, according to exploding topics.com
Investopedia indicates that the supply of bit coins in the year 2020, December, reached 18.587 million. This figure represents 88.5% of the maximum number of bit coins that will be ultimately supplied.
Crypto currency diversification and pricing
There is evidence of an almost daily expansion in the crypto currency assets in general. This makes it possible to hold the discussion that options of investment in this crypto arena into the future is a myriad and thus making it interesting to potential investors.
In the same breath however, there are other crypto currency iterations that do not have the generally appealing face value factors that make crypto currency appealing to new investors. But given this diversification, it is generally agreeable that injection of capital will be directed to the platform that is engineered towards supporting most of these applications.