In 2021, we witnessed the bull cycle of one famous financial asset – Bitcoin. The bull cycle is still going on, and it’s very clear we are experiencing a digital gold rush. A lot of investors are familiar with Bitcoin’s previous bull runs, but this one is very special because the growth of Bitcoin has spiked in less than a year. In 2021, we have many reasons to believe that the cryptocurrency will break $100,000 by the end of 2021. Let’s take a look at the main reasons behind this prediction.
Dwindling BTC Supply
Bitcoin has a limited supply from the creator Satoshi Nakamoto that decided to set an upper limit of the total number of BTC that can ever be generated to 21 million tokens. By 2020, more than 80% of the entire supply has been mined, and approximately 3 million BTC are left to be mined.
But, what’s more, the current supply of BTC is dwindling as the rate at which new BTC is generated slowing down. This rate is controlled by blockchain protocols, including Bitcoin halving.
As we know, the last halving happened on 12 May 2020, and the growth of Bitcoin was substantially increased over the year because the number of BTC in circulation is halved, whenever 210,000 BTC are mined, or it takes around four years for the network to reach this point.
Either way, the mining award is also declining, as it went from 50 BTC in 2009 and in a period of 10 years has settled to 6.25 BTC due to the last halving. This means that compared to the demand for BTC, over the last years, the supply is increasing slowly, and is limited, which makes Bitcoin a rare cryptocurrency.
Online Trading Sites
Investors know that liquidity is an important asset. Bitcoin is a highly liquid asset due to the availability of online trading sites and increased support of investors that are driving the higher demand for BTC. If you want to invest in BTC, automated trading sites like Immediate Edge, make the entire process less complicated, easier, and more accessible to beginners.
Trading on an automated trading system means that the process is more efficient. The robot is able to quickly gain trading insights and adjust accordingly based on the market data, while you only need about 20 minutes per day, setting up your account. The minimum deposit is $250 and you can potentially earn up to $800 on a daily basis here.
Increased Hash-Rate
The increased hash rate depends on the collective computing power in the network. This actually depends on the competition of the network. As it becomes more statured and, more miners join the network, the hash rate rises. But, it’s not just the number of miners due to the increased costs related to mining; Bitcoin mining is conducted on a large scale, in mining farms and pools, that have combined computing power that also impacts the collective hash rate.
This is important because the blockchain network adjusts the difficulty of mining after 2,018 blocks are added, or every two weeks, it rises as the hash-rate rises, which affects the rate of introducing new BTC in the crypto market.
Support from Famous Brands
Following the huge price increase to $60,000 in March, thanks to the long bull market phase, the support for BTC has been amplified due to support from brands like PayPal, Goldman Sachs, and Tesla. PayPal and VISA have recently announced that they will accept BTC payments, and on PayPal, it would also offer an option to convert the cryptocurrencies to fiat currencies.
Next, the major Investment bank Goldman Sachs would offer cryptocurrencies and BTC to its clients. Otherwise, Tesla has made an investment of $1.5 billion and accepts BTC payments in the USA. Many other smaller brads followed suit, and all of these actions support the use of BTC and boost the demand for BTC.
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