In 11 years Bitcoin went from a "penny stock" to in 2017 a $20000 USD freak of nature. This was only the beginning though in just over 20 days Bitcoin doubled again to $40000! The trend is only continuing.
Back in 2017 the momentum was short lived and soaring at an all time high the price nose dived to a comparatively low price. Investors selling to make a quick buck or in this case a million. Are we repeating history with this historic rise in prize? It doesn't look like it. Here are three reasons Bitcoin has surged this year.
Worldwide Inflation
As the Corona Virus has spread world wide so has the increased bloated spending by governments. The U.S government is in talks on a $1.9 TRILLION stimulus package. Shelling out trillions of dollars globally is pushing investors towards Bitcoin to shelter from incoming inflation. Bitcoin's limited supply of 21 million tokens has never looked so appealing.
Wide spread fear of inflation will push more players in the Bitcoin Market and this will be a major reason why Bitcoin is climbing up and will continue to.
FOMO ( Fear Of Missing Out)
Every investor has had this feeling, I know I have. It can really be a dangerous mindset and I try my best to not fall prey.. easier said than done. Small time investors are not the only ones who are feeling FOMO and this tread is not going anywhere any time soon. Square's $50 Million investment into Bitcoin along with Paypal allowing 100s of millions of users to trade Bitcoin. These two events were some of the main catalysts that drove this recent price surge. The recent news of Elon Musk's Tesla investing $1.5 Billion has already seen a $1 Billion return on investment.
These household companies investment finically and in faith are only going to drive more companies into this arena because of... you guessed it FOMO!
Legitimacy Is The Key
As mentioned above big players like Square, Paypal and Tesla are all throwing their hats in the ring and investing cold-hard cash into Bitcoin. This is only going to drive more investors and governments into the Crypto world. All this is great long term for Bitcoin. Gone are the days of only my tech savvy high school friend knowing about Bitcoin. The further Bitcoin moves from shady chatrooms to Wall Street the more trustworthy the Currency becomes.
Bitcoin reaching a 1 Trillion Market Cap is a massive step but its only the beginning. For all the reasons above Bitcoin isn't going anywhere any time soon.
-dayOff
I have invested in both, I do think Bitcoin will see more of gain but I agree Bitcoin Cash is closer to original vison. I don't think you can go wrong with either..."a rising tide lifts all boats"