Bitcoins are currently the top most valuable cryptocurrencies out of innumerable ones already present in the market. Investors and traders prefer to invest in bitcoins before any other cryptocurrencies. Although the craze for bitcoins is clearly visible, one cannot resist questioning the uninterrogated hype.
Despite the pandemic impact, cryptocurrencies have started to take an upward trend. Bitcoins are no exception. Rather, bitcoins have seen unprecedented growth in demand and value. There are justifiable reasons behind it. In fact, cryptocurrency market capitalization happened majorly because of bitcoin value. As much as it sounds unbelievable, it is true to the core.
Similarly, as bitcoin’s value rocketed up to 6,00,000 traders and investors wondered how has the hype been even possible amidst an economic crunch. Putting all the digits beside, let’s dive in to see what made these crazy numbers possible and the reasons behind it.
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Reasons why bitcoins are valuable
1. Institutional adoption
The first question many people raise against the hegemony of bitcoins is that why just bitcoins when there are numerous other alternatives or even better cryptocurrencies. It is because of the widespread institutional adoption of bitcoins. Various financial institutions, technology companies, and even international organizations have publicly embraced bitcoin pushing aside all the other available options.
For example, entities like Tesla have accepted bitcoin as a legit transaction and currency for the sake of their transaction and payment purposes. This enhanced the credibility, reliability, and trustworthiness of bitcoins.
2. International embrace
Bitcoin is probably the only one to be embraced by the international community. Ethereum fairs well on this part. But, it is limited to only a few countries.
Most of the people who trade and invest in cryptocurrencies do so in bitcoin without any second thought. That is how clear and adamant investors and traders are in their choice and in the case of bitcoins.
3. Demand
For the reasons mentioned above and beyond, the demand for bitcoin is currently on the high. As we already know, the price and value of any commodity go high and depend on its demand.
Bitcoins are limited in supply upto 2050. The limited nature, shooting up value, and wide acknowledgment from different sections of investors and institutes have caused the price rise of bitcoins.
4. Alternative
The demand and acknowledgment of bitcoin served the purpose of the best alternative in the dire needs of investors and traders during the pandemic. The finance market and money market have taken a plunge during the pandemic. As they were searching for alternative routes and currencies for investment, the already in-demand bitcoin served as a ready option for all similar people.
It has instantly managed to attract all sections of people with its prevailing popularity. Also, bitcoin is easy to access and widely available unlike many other cryptocurrencies.
5. Legality
As far as the information is available, bitcoin is the topmost cryptocurrency that is legally accepted in most countries. Although many other countries like India still enforced bans and restrictions on cryptocurrencies, many other countries have lifted the bans or limited their bans and embraced only bitcoin.
This is one of the reasons for the rising popularity, craze, and finally the value of bitcoin as cryptocurrency. Any currency that is legally accepted automatically gains widespread acknowledgment from all sections of people. These two reasons combine to increase the value of bitcoins.
6. Trading sites
Another reason behind the increasing value of bitcoins is the trading sites. No matter which trading site you log into, the first available cryptocurrency you find is none other than bitcoin. The reasons behind trading sites readily accepting and including bitcoin in the list of their cryptocurrencies is because of the demand, shooting price, and the legality in the majority of the countries. Had it not been for these reasons, trading sites wouldn’t have included bitcoin in their list.
Also, bitcoin is most of the time perceived as a synonym to cryptocurrency. Although it is not the case, this symbolically signifies and represents the widespread acceptability and acknowledgment that bitcoin as a cryptocurrency has gained.
7. Accessibility and availability
As compared to all the other cryptocurrencies, bitcoins are widely available and universally accessible. Because of the demand, legality, widespread acknowledgment, popularity, and value, bitcoin has been eventually made widely available by trading sites, financial institutes, countries, investors, and even trading intermediaries.
That is the amount of credibility it holds, no matter what. If seen from a lens of comparison, bitcoin is the most available and accessible bitcoin of all cryptocurrencies. That is why the value of bitcoin constantly increases with time.
Conclusion
As mentioned above, there are innumerable cryptocurrencies available in the market like Ethereum, dogecoin, and similar others. Yet, only bitcoin emerge victoriously.
That doesn’t mean bitcoin is averse to the volatility of finance and the money market. Despite conforming to all market dynamics, bitcoin is the current hegemon in the digital currency market.
While there are just a few reasons why bitcoin stood tall out of all possible and already available options, there are many more that can’t be discussed in just one article. However, one thing that is clear is that the shine and fame of bitcoin are not going to fade away anytime soon for all the reasons mentioned above and beyond.
