When Bitcoin emerged in 2009 billion barely anyone could have known that it would become the symbol for the new digital gold of 2021. Today Bitcoin has reached a worth of over $6000, and the price predictions are expecting it to surpass $100,000 by the end of this year. 

Some believe this milestone will be reached even sooner, but either way, the digital gold rush has attracted many investors, non-profit organizations, famous businesses, and even governments who are not only supporting Bitcoin investments but are making sure there are proper regulations to allow mass adoption of cryptocurrencies.

Digital Gold 

One of the reasons why it’s considered digital gold, it’s actually the last bull market phase during which Bitcoin’s value surged over 200% from 2020 to 2021, and it still lasts to this date. Furthermore, it is considered and also treated by investors as a long-term investment and safe-haven asset. 

READ MORE:  What is Crypto Art? How can we classify any crypto-asset into art?

The similarity between Bitcoin and gold is that they are both safe-haven assets, but Bitcoin is considered a safe-haven asset because it has a limited supply of 21 million BTC. This decision was made by Nakamoto that wanted to control the inflation rate of Bitcoin, and also by restricting its supply. It helped with the position of Bitcoin as a rare and precious cryptocurrency, even as the crypto market expanded along with the competition of over 4000 other cryptocurrencies in 2021.

Moreover, what makes Bitocin a great safe-haven investment is the fact that its value has grown in times of uncertainty, especially during the last bull market phase, but because this is a decentralized cryptocurrency, people overlook the fact that it has volatile nature, as it is not impacted by the fluctuations of the financial markets such as financial crisis, political unrests, and other crises that might disrupt the position of other currencies.  

READ MORE:  What is Crypto Art? How can we classify any crypto-asset into art?

It’s also worth mentioning that the price of gold has been increasing since 2000, but when the global market crashed, it was the first time where the price of gold has also declined.

Demand for BTC  

Plus, because Bitcoin is generally very accessible on every online trading site, the demand for BTC keeps growing. For example, there are many excellent automated trading sites like immediateedge.biz that offer many benefits to their users, especially when they are just starting out as investors.  

Some of the main advantages are that the trade is executed automatically, and it minimizes the time you need to spend trading on the online trading platform, and it also it reduces the emotions in the trading process as the automated trading system is perfectly able to complete market analysis for its members and perform trading. You can become a member by making a deposit of at least $250.  

READ MORE:  What is Crypto Art? How can we classify any crypto-asset into art?

Another reason why the demand for BTC is increasing as well as its price is because, as we mentioned before, it has a scarce supply of Bitcoin tokens, and we already mined about 80% of the total number of Bitcoins. 

Moreover, the price has increased up to $60,000, and it’s expected to surpass $100,000 in December 2021. However, some believe that based on the pattern we have seen so far, the price can even break $146,000.  

BTC Investments 

Most millennials are tech-savvy, and they want to invest in cryptocurrencies and in Bitcoin, so they also drive the demand for BTC, which pushes its status as a competitive safe-haven asset to gold. 

READ MORE:  What is Crypto Art? How can we classify any crypto-asset into art?

But also, its status as digital gold is further proven by investments of established organizations, businesses, and accredited institutional investors, including crypto trust funds and hedge funds. For example, during the last year with notice that reputable institutional investors like the Grayscale Bitcoin Trust offering an option for their investors to trade and invest in BTC.

Related Posts:

Leave a Reply

Your email address will not be published. Required fields are marked *

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}