Bitcoin, a virtual or digital currency, has been around for thirteen years, and during those years, it has proven its usefulness, success, and profitability as a global currency. Also, currently, this digital currency has a market cap of $60 billion. So, you can rely on exchange platforms like bitcoin loophole live to buy, sell and trade this digital currency.
This electronic currency has a fixed supply whereby only 21 million Bitcoins will exist. This digital money is also popularly known to be highly volatile, where the price fluctuates by either increasing or decreasing in minutes or days. For instance, in 2021, this virtual currency reached its all-time high of more than 60,000 per coin. However, it has lost its value significantly after its inception.
On the other hand, there are a few factors that contribute to the fluctuating of this virtual currency, and they include:
Lower Market Cap than Fiat Currencies
Bitcoin has the highest market cap among the other cryptocurrencies. However, this digital currency has a lesser market cap than the widespread global market currencies. In addition, volatility occurs because this electronic currency lacks enough liquidity. As a result, some market experts claim that the market cap of this digital money will continue to fluctuate until this digital currency hits a market cap of trillions.
As a result of volatility, mainstream adoption of this digital money is still not that high. However, there is increased adoption across the globe whereby well-established businesses are now accepting this digital money payment. Besides trading, this exchange provides you with a secure wallet that you can use to store your investments safely.
Some governments actively try to stop this digital money transaction within their borders. For instance, China banned its citizens from trading this virtual currency within its borders. Such regulations create concerns among the people about how good and genuine this virtual money is to them. Due to the uncertainty among Bitcoin investors, the price of this digital money fluctuates constantly.
There are very influential people in the media who either comment about this digital currency positively or negatively. Either way, if they share negative sentiments about this virtual currency, the public will lose their trust in the profitability of Bitcoin hence leading to a decrease in the value of Bitcoin. On the contrary, if they share positive opinions about this virtual currency and its benefits, the value of Bitcoin will increase in turn.
So, what influential media houses and people say about this electronic asset is a factor that determines the value of Bitcoin.
The Future of Bitcoin
Many believe that Bitcoin will be the future of money and often view it as digital gold. Therefore, with the widespread adoption of this digital money across the globe, Bitcoin could have a bright future.
This virtual asset has a lot of proven benefits, such as fewer transaction costs, fast transactions, and transparent and anonymous transactions, among others. Countries like El Salvador have made this electronic currency a legal tender in the country, and since then, reports show that Bitcoin has brought a lot of economic benefits. Developing countries have adopted this virtual currency since it has brought about financial inclusion among the unbanked population.
Bitcoin industry leaders and experts are confident in the future growth of this digital money, describing it as a deflationary asset whose value will increase over time.
The Bottom Line
Bitcoin is undoubtedly the future of money. However, it is difficult to predict the price of this virtual money with accuracy due to its unstable value. However, Bitcoin might eventually become stable.