Bitcoin (Cryptography: BTC)16 years after its introduction, today’s market capitalization is over $1.7 trillion, It is the oldest and most valuable cryptocurrency in the world. The ability to bounce off a low pressure and reach new highs shows its resilience. In other words, fewer people question the ability of Bitcoin to stay.
This major digital asset has been sliding for about three months, but perhaps there is a rebound going on. Do investors need to buy Bitcoin while trading for under $90,000 now? Below are three reasons why I think the answer to that question is “yes.”
One of the clear reasons why we’re bullish on Bitcoin is the recent developments. It relates to how the environment is changing to better support cryptographic advances.
Bitcoin, for example, appears to be a key issue for the Trump administration whether it creates strategic preparations or implements policies to encourage innovation in digital assets.
Some of the world’s largest financial institutions are also taking on this action. Strong asset managers aim to achieve a lot of success with them Spot Bitcoin ETFfor example, it is becoming a big money maker.
Five years ago, I think few people could imagine a future in which Bitcoin became an important topic in the political field. It would have also not been possible to predict how much Wall Street would accept Bitcoin. Seeing cryptocurrencies make big breakthroughs in these two realms gives us confidence that not only does it go anywhere, but that Bitcoin appears to be even more important for discussion 10 years from now.
The most important feature of Bitcoin is its fixed supply. Because this hard cap is listed in the Bitcoin code, there are only 21 million coins in circulation (currently around 19.8 million circulation). In the world of finance, it is difficult to find such an absolutely finite thing.
This rarity could have helped drive Bitcoin price rise. More and more people are eager to own assets, which is the case with Fiat currency. It’s easy to look ahead and believe this trend will continue.
Since the financial crisis ended about 15 years ago, M2 Money Supply Of the four major central banks in the world (US, Europe, Japan and China), it has more than doubled to nearly $90 trillion. This is driven by an endless fiscal deficit. In fact, Congress’s Budget Office predicts that in 2035, US federal debt held by the public will jump from 100% to 118% of gross domestic product. That means more debt.
The story continues