In June 2021, Bitcoin (BTC) was at $28,800. By November of that year, it had posted significant gains and, 10 months later, holds at more than $45,000. While the numbers will likely change again by the time you read this, the 56 percent gain in less than a year hints at bullish prospects for the months and years ahead. What’s behind the surge? In this article, we examine the factors.
The surge in Bitcoin prices since June 2021 can be attributed to a number of factors. First, there has been an increase in institutional investment in Bitcoin. In particular, corporations and hedge funds have been buying up large amounts of Bitcoin, driving up demand and prices.
In recent months, Bitcoin has been attracting increasing attention from the mainstream financial world. A number of sizable investments in the digital currency have been made, culminating in a nearly 20% increase in its value over the past month. While some view these developments with skepticism, many believe that they are indicative of growing confidence in Bitcoin as a viable investment option.
So far, the most prominent corporate investor in Bitcoin has been Microsoft, which announced in August 2021 that it would accept the currency as payment for some of its products and services. Since then, a number of other companies have followed suit, including Overstock, Expedia, and Newegg. For these businesses, the attraction of Bitcoin lies primarily in its potential to lower transaction costs.
Means of Exchange
Another factor that has contributed to the recent surge in Bitcoin prices is the increasing use of the currency as a means of exchange. In particular, more and more businesses are beginning to accept Bitcoin as payment for goods and services. This trend is likely to continue as Bitcoin becomes more widely accepted and its price continues to rise.
The halving event that took place in May 2021 also contributed to the price increase. The halving cuts the amount of new Bitcoin that is created each day, making it scarcer and more valuable. This is a regular process. It occurs every 210,000 blocks or roughly every four years.
The purpose of the halving is to control the supply of new bitcoins and ensure that the currency remains scarce. As a result, the halving event tends to have a significant impact on the price of Bitcoin. In the months leading up to the May 2021 halving, the price of Bitcoin surged to new all-time highs, as investors anticipated that the reduced supply would lead to higher prices.
Increased Public Awareness
Finally, public awareness of Bitcoin has also grown in recent months, as more people have become interested in cryptocurrencies. This has led to more individuals buying Bitcoin, which has further driven up prices.
The Bitcoin digital currency has been around for more than a decade now, but it has only recently begun to gain widespread acceptance as a means of payment. There are several reasons for this, including the fact that Bitcoin is still relatively new and unfamiliar to many people. While many people have heard of Bitcoin, they may not have an understanding of how it works. With accessibility through wallets and the convenience of ATMs like those from Tao Bitcoin, the confusion is rapidly going away.
Bitcoin Over Fiat
There are some significant advantages that Bitcoin offers over traditional fiat currencies. For one thing, Bitcoin is much easier to transport and store than cash, and it can be used to make international payments without incurring high fees. In addition, Bitcoin transactions are irreversible, which provides a degree of protection against fraud. As a result, many businesses and consumers are beginning to see the potential of Bitcoin as a viable alternative to fiat currencies.
While the recent surge in Bitcoin prices is certainly attributable to a number of factors, it is clear that the currency is gaining mainstream acceptance and investment. This trend is likely to continue as Bitcoin becomes more widely used and its price continues to rise.
Investors should take note of these factors when considering whether to buy Bitcoin. While prices may fluctuate in the short term, the long-term trend appears to be positive, making Bitcoin a good investment for those looking to buy and hold.
Have You Tried Bitcoin?
Bitcoin and cryptocurrencies, in general, are here to stay. They offer a way to do business that transcends borders and provides buyers, sellers, and investors with a more transparent way to pay.
If you haven’t used Bitcoin yet, what are you waiting on? It’s easier than ever to get started, especially if you’re in the U.S. Tao Bitcoin ATMs are now in eight states and expanding. If you can use a traditional ATM, you can use one of ours. Check out these locations near you.