The digital currency market and cryptocurrency prices have gone up and seen a good boom despite the Covid lockdown in the market. Many digital currency startups also have entered into the space during pandemic times to offer an increasing demand for the coins like BTC and others.
For example, the groups like CS Kuber also announced the rising price of the coin, reaching 15 M USD. Several known fintech investors have similar views about the same. As a result, the technology valuation seemed to have got good momentum, and the market’s revenue has also grown in a big way.
In the list of digital coins, we have seen ETH be the second-largest digital coin in terms of money and market capitalization.
On the other hand, we see Bitcoin still high with more than 65K USD in the market at this juncture. The value of other coins have also gone up in recent times, and it will keep ongoing.
Here we will check the details of cryptocurrency prices, while for a detailed study, check the important things to know before entering the bull market of bitcoin.
Institutional Adoption
The first reason there is a rise of digital currencies, mainly BTC, is the vast institutional adoption of the coin. It is regarded as a safe choice-based asset against issues like inflation and volatility. Furthermore, the current economic and social change in the ecosystem will further bring situations for people who are not holding a good amount of cash and thus stay hedged against inevitable market swings.
Recently we have seen the trend going high with sure public based companies now busy converting their cash treasuries into digital currency. One of the companies, Square, the top company that has invested in digital coins, remains the top payment company to enter into a digital coin. The company pumped 50 M USD in BTC. It soon brought the public listed company a whopping of 425 M USD worth of cash revenues in BTC.
PayPal and Digital Coins
Earlier in 2020, we saw the top digital currency based payment platform is known as PayPal also announced about launching the digital currencies when it comes to buying and selling the features on the platform. The launch came along with some key traded currencies, including BTC, BTC Cash, LTC, and ETH, to name a few.
However, PayPal has not announced that they plan to transact Bitcoin and other digital coins. The company is known for its 350 users worldwide, and these are competent enough to adopt digital coins as their payment option. At the same time, we have around 30 million based merchants willing to choose to get payments in digital coins. Also, PayPal can help several critics of digital coins as a sustainable currency.
One can find it to be the top names jumping on the digital coin bandwagon. The increase in such players in the digital currency market has increased demand for many more asset classes. In this way, it has contributed in a big way to price rise.
Apart from the company known as PayPal, we can also find specific companies now owning other known payment platforms like Venmo. It plans to expose the 40 million users all over the crypto payment. These platforms can exert new digital currencies in the market, and some of these platforms are known for making digital payment much broader and more robust.
Many private investors are now seeking to adopt digital coins as an exchange means, and many government-based companies are now trying to regulate the market. Also, we can see many more nations, including the US, Japan and Germany, to name a few, who are keen on taking their positive step towards virtual currencies.
The Scarcity
The following reason why digital currency is gaining higher value is the limitation in the supply of these coins. With the BTC halving driven scarcity found in the market, most digital currencies also function similarly. In this way, it becomes a limited supply affair.
We saw the halving process of Bitcoin declaring this fact before the world. Thus, Bitcoin mining will only work until the coins are spared. We have seen around 19 M of the coins have been mined out of 21 M of the same. It has given around 90 per cent of mining for Bitcoin. Also, it takes not less than 10 minutes to mine a coin, mainly if we speak 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 gaining good attention before the payment option when establishing the new asset over the past decade.
Even in the public domain, some things are unwilling to use different transactions. Therefore, we have seen many platforms launching their platforms to gain money in the space with the help of crypto investing accessibility.