In fact, initially the prediction of Bitcoin price growth was only 20 thousand USD. However, before the year changed, Bitcoin had even surpassed 34 thousand USD.
1. Demand Spikes
What is the reason behind the soaring price of Bitcoin? First, because of a surge in demand, such as from US companies.
For example, the Massachusetts Mutual Life Insurance company bought Bitcoin for US $ 100 million (about Rp1.4T). There is also Wall Street which has poured out a Bitcoin investment equivalent to US $ 530 million (around Rp.7.5 T).
Tech company MicroStrategy also bought Bitcoin in two phases, valued at US $ 250 million (around Rp.3.6 T) and US $ 225 million (around Rp.3.2 million), respectively.
According to Oscar, "The enormous demand has a sizeable impact on the (Bitcoin) price increase."
2, Ease of Purchase
The easier it is to buy Bitcoin in the world also plays a role in rising prices. Apart from going through an exchange company, PayPal also has a Bitcoin transaction feature.
3. The Biggest Valued Crypto Bitcoin Asset
Investors consider Bitcoin to be the crypto asset with the biggest rating, and the best performing of 2020. Their assessment is based on Bitcoin's performance over the past 10 years. In fact, in the midst of COVID-19, the price of Bitcoin continues to skyrocket.
"Now, people have seen Bitcoin fundamentals that were proven in the last 10 years and be a good inflation hedge," added Oscar.
4. Increasing Demand, Limited Supply
"Bitcoin demand continues to increase globally, while supply is limited, so the price has the potential to continue to rise in the long term," according to Oscar.
He added that a number of world banks predict Bitcoin will exceed the price of Rp1 billion per 1 coin. If that happens, then Bitcoin will become one of the most profitable investment commodities compared to others - such as deposits, precious metals, stocks, bonds, to property.
However, what you need to remember, investing in Bitcoin is also risky. The reason is, prices have the potential to fall at any time.
