Bitcoin is on about to cross the $100,000 mark and stakeholders are upbeat about the level of growth bitcoin is exhibiting. The aftermath of the elections has resulted in a market surge and has correlated the digital assets into the growing trust. The key questions remain as to why is the percentage for bitcoin reaching so high and what does it spell for the market stakeholders. Let’s analyze what is happening on the ground and how it might play into your hands.
The factors which has enabled the peak price of bitcoin are multipronged in nature. The post election sufficiency has been a huge contributing factor in both institutional as well as retail investors to tap into the crypto currencies sector as a means of countering inflation and otherwise difficult environments. As Stocks took a nose dive, bitcoin registered a price increase on a relative basis and has pushed investors to starve for more.
Increasing number of institutional investors and other heavy weight financial persons is one of the arguments for the spike. In the past year, Bitcoin has been added into the investments spectrums of large corporations and various stadard chartered banks. With more institutional support comes increased credibility of bitcoin thus drawing in more investment and pushing the bitcoin price up.
I’ve got to hand it to you, for everyday investors, this passing of some new milestone is both captivating and terrifying at the same time. It is true that early adopters of Bitcoin are making a ton of money. New investors however, on the other hand, feel they are perhaps late in joining the bandwagon. There are more and more people who seem to be in a rush to invest which is pushing Bitcoin up even further.
Still, some analysts warn this is a big mistake because bitcoin is a high-risk investment that is very unstable. Despite this cryptocurrency seemingly reaching a new all time high the trend has historically been one of rapid price fluctuations. What this implies is that indeed there is a high risk for making a significant amount of money but there are consequences as well. It is usually advisable to perform a lot of research and only invest what you can afford to lose.
The other implication, that Bitcoin should be losing ground at a price approaching $100,000 also deserves comment. There is an increasing trend of ordinary citizens accepting cryptocurrency, as both businesses and governments are looking into practical applications of blockchain. Such an event could change the perspective, in a negative or positive way, forward for the most of the population as far as cryptocurrencies are concerned.
Teens, as well as adults who are familiar with technology, can recall how Bitcoin has changed the perception of finance. Many use it not only as an investment but also for purchases and saving. It’s the ideal time for all the investors and future money believers to keep an eye on the world.
As Bitcoin gets closer to $100,000, the eyes of the world are directed at whether this high point will be achieved and maintained. The increasing use and difficulties of cryptocurrency concurrent with the rapid evolution of the financial arena are easily seen through its history.
