Why Are Investors Rallying Behind Bitcoin?

Bitcoin hit a record high of over $66,000 last week. On October 21, 2021, the world’s largest and oldest cryptocurrency began trading at USD 67,139 (approximately 50.25 rupees). Coins have been recorded one after another since the beginning of the year and have always been one title.

Bitcoin, arguably the most valuable cryptocurrency in the world, has won over several investors over the years. In terms of market cap, it is still at the top of the price chart. Despite some strong competitors like Ethereum, Bitcoin remains popular with investors.

Here are some reasons why investors continue to rally behind Bitcoin:

Highest value cryptocurrency: Bitcoin remains the most valuable cryptocurrency. Ethereum ranks second, but the price and market cap value between the two is huge. At the time of writing, Bitcoin costs around $59,000 (about $44 Lark) while Ethereum is priced at $4,041.92 (about $3.03 Lark).

Prices often determine the interests of investors. Therefore, a high Bitcoin price indicates that investors are interested in Bitcoin.

Market Capitalization: Investors often rely on market capitalization to make investment decisions. Better market capitalization means a better market presence for cryptocurrencies. Bitcoin beats this with a market cap of over $1 trillion. This makes Bitcoin an attractive option for investors.

Celebrity Approval for Digital Currencies: The main reason for the increasing popularity of Bitcoin is due to celebrity endorsement of the digital currency. In India, celebrities like Amitabh Bachchan and Salman Khan have adopted blockchain technology which is the basis of many cryptocurrencies.

Celebrities are also increasingly interested in irreplaceable tokens (NFTs) that store their own digital signature. All of this has resulted in the growing popularity of cryptocurrencies in general, especially Bitcoin.

Scarcity Factor: Rising Bitcoin prices also increase investors’ confidence that they will experience strong shocks that could affect the structure of the centralized economy.

There are also rare factors that make Bitcoin more attractive to investors. There are currently over 18 million bitcoins. The total number of bitcoins produced so far is capped at 21 million. This restriction will increase the price of Bitcoin as it becomes more popular. It also attracts the investors behind Bitcoin.