Reasons Behind the Growth of Bitcoins From 2021: 4 Facts Explained

Posted April 14, 2021 by in Lifestyle

Back from its birth in 2009, cryptocurrency has become one of the most popular versions of digital currency all over the world. Today, it’s treated as a digital currency that helps you to buy all sort of asset from any corner of the globe digitally. The currency bypasses all sorts of direct or indirect tax imposed by the global banks and financial institutions.

The currency runs on a whole different set of technology known as Blockchain and the conversion of these cryptos usually take place in different market exchange, known as – Bitcoin exchange.

You can either buy or sell the cryptos in those exchange points. A lot of B$ buyers turned rich within a small time span after investing on those currencies. On the contrary, a lot of buyers ended up losing bitcoins in the trade and in no time their wallets ran dry within seconds.

So, it’s advisable to invest on the crypto currencies only when you’re assured that your investment is worthy.  

You must be thinking- if crypto trading is that risky then why on earth people are that keen to acquire even 1 satoshi in their bitcoin wallet? 

That’s because, according to crypto trading experts, there are sufficient chances for the growth in bitcoin prices.

BTC’s Are Easy to Hold 

The bitcoins are easy to hold. Most of the investors reserve a significant number of the bitcoins and invest it in their private funds. They can use the crypto currencies for general expenses. After accumulating a sufficient number of satoshis, they usually wait for the price to rise. Once the bitcoin price rises, they withdraw it from the respective BTC currency exchanges to convert it in the currency form they require. 

Say for e.g., after retaining a significant number of BTC’s in the wallet, when the price of the bitcoins rise, the respective holder of the cryptos might convert those from a bicoin currency exchange and get a net currency value  worth of 100, 000 US$ or a 50, 000 US$ too. 

However, the value of the bitcoins depend upon the rise in bitcoin prices.

Increase in Liquidity 

It’s quite normal for an investor to lose their bitcoin price when it drops by 50%.  The low liquidity rate in a BTC trade often tempts multiple investors to try their luck in one such trade. The complex trading process always lure the investors to try their luck for the next time who lost a huge amount earlier in the same trade. 

That raises the interest amongst the gamblers to roll the dice again and again! 

Desperate Wish to Try Their Luck 

Crypto trade is very dicey one. You never know when you’re running out of your luck. If your luck is with you, you might win 4000 US$ by investing a bitcoin worth of 600US$.  At the same time if your luck is against your favour, you might lose it even after investing 10,000US$ in one such trade. However, that’s just an example. Even if you lose your luck and see that the price of the bicoins have dropped, have your patience. They will definitely increase after a certain point of time.

It’s better to take the risk if you’re gambling as a beginner. Rather take some time to understand and analyse how the gambling works. Browse some of these sites like to know how to trade cryptos as a beginner to avoid maximum loss.

Shortage of Bitcoin Supply

Shortage of bitcoin supply is one of the reasons for which millions of people try their luck every day for buying the cryptos. It’s believed that till date, about 85% of the total amount has already been mined. After every 10 minutes, 12.5 bitcoins come into existence. Either you’re smart to buy the bitcoins before others do or you have a luck to buy those easily. If you fail to do so, you’re losing the game, simple! 

Since the supply of the BTC’s are short, usually the available number of BTC’s prices always remain high. That’s why, even if the bitcoin prices drop as of now, it’ definitely going to increase after a certain point of time. So you better stop worrying about it!