The Bitcoin halving that took place back in May 2020 was one of the most anticipated cryptocurrency events of this year. Bulls and bears alike were all poised and waiting to see how the price responded following this event, and after weeks of relatively little action, things are starting to change. At the time of writing, Bitcoin is floating around the price of $11,000, having displayed a surge in recent days.
While this is exciting, there’s no denying that Bitcoin is quite a volatile asset. Despite what the bulls might say, nobody really knows where Bitcoin could go, as we’ve never seen an asset like Bitcoin before. So, rather than focus on the speculative claims, we will look at the fundamentals that justify why Bitcoin could continue to grow.
The end of cash?
In recent years, doesn’t it seem like cash is being used less and less? We see this everywhere, and the range of payment methods open to us are increasing like never before. Just think – when you go to make a deposit at an online casino like india-casinos.com, checkout at an eCommerce store, or even make a purchase in a physical store, there can be 10+ methods for us to use. This was something that was just unfathomable a few years ago, and Bitcoin is just another one of these methods.
More specifically, the recent COVID-19 pandemic has made us all resort to alternative payment methods like never before. Given all of the social distancing recommendations, people have needed to use contactless payments in physical stores, and to combat the lockdown in many countries, the vast majority of people started to simply shop online.
Mistrust in the government
Ignoring all of the conspiracy theories about the Coronavirus, the underlying truth behind the pandemic is that people have started to lose trust in the government. People have suddenly started to question things like, where has all of this money suddenly come from? Why have they enforced certain measures? There’s a whole lot of questions out there about the way that this pandemic has been handled, yet regardless of individual opinions, the overwhelming reality is that people have started to mistrust their respective governments.
So, when this happens, people start looking at things that aren’t under the control of the government. Specifically for Bitcoin, and since this is a digital currency, people are now enjoying that it is decentralized, meaning that the government does not control the supply and the price in any way. This, in turn, will stimulate interest in Bitcoin, and drive the price higher (in theory).
This is another factor that, unfortunately, has really become a concern during the Coronavirus outbreak. There have been so many scams going around, with hackers targeting the banking details of thousands of unsuspecting victims from around the world. Now, as we all know, banks follow a specific sort code and account number system to hold people’s money. In the world of Bitcoin, this is simply not the case. Rather than use account numbers and sort codes, Bitcoin keeps things completely anonymous.
This is ideal for when you are buying things online, as it makes things almost impossible for hackers to steal your money. This is largely thanks to Bitcoin’s structure and encryption that it operates on. When you buy something through Bitcoin, you don’t actually need to give your personal details, as these are stored in the digital wallet in which you hold your Bitcoins.
Of course, this is absolutely ideal to protect your details when making purchases online, as the added security is highly advantageous.
Here we have mentioned just three of the reasons why the Bitcoin price might continue to rise. We have approached this from a logical perspective rather than from a technical perspective, and as with any investment, there is no guarantee that an asset will go one way or the other. It’s important to weigh up all of the factors and assess your risk tolerance before making any rash decisions.
If you do have an interest in Bitcoin, we would always encourage you to do your own research before jumping in with both feet. It’s not for everybody, but in this day and age, uncertainty seems to be lurking around every corner!