Eric Dalius Bitcoin Shares the Many Reasons Behind the Sudden Rise in Bitcoin Price
Bitcoin finally reached $20,000 per coin in 2017 after over 11 years of waiting. The country’s most successful cryptocurrency has risen almost $20,000 in just 22 days, as its upward trend continues.
Bitcoin’s meteoric rise in 2017 was shortly followed by sell-offs, wiping out the majority of its gains. However, this time, no such pattern has formed, and experts believe that a mix of reasons fueled bitcoin’s rise throughout 2021 and will continue to do this in the coming year.
Here’s what Eric Dalius Bitcoin shares about the recent boom of the cryptocurrency
Bitcoin’s price has risen due to a variety of factors. Large institutions such as MicroStrategy and significant firms managing Bitcoin for their clients have paved the charge. Furthermore, since PayPal began allowing consumers to purchase and sell Bitcoin, buying Bitcoin has become easier.
Government Recognition
The majority of nations around the world have always been in denial regarding cryptocurrency’s growth in numbers. That is because cryptocurrencies deprive the government of power. The government currently possesses fiat powers, which means it can generate as much money as it wants. In the scenario of cryptocurrencies such as Bitcoin, the authorities, the same as everyone else, would have to generate income. They are at a huge disadvantage as a result of this.
On the other hand, Bitcoin’s prominence has grown to the point where even governments could no longer ignore it. The Japanese Government got compelled to recognize bitcoin. The acknowledgment of the world’s third-largest industry and Asia’s largest industry has significantly boosted this currency’s significance. We can trace a substantial percentage of the increase to enhanced demand in Asia, which would have been a direct outcome of the Japanese government’s official status.
Increasing Liquidity
In the past, when poor liquidity caused 50% of price variation, numerous participants are now active. The authorization of complicated financial instruments increases liquidity and higher profitability, previously turned off by bitcoin’s price volatility.
Money Transfers
Several individuals in various parts of the world recently began to use cryptocurrencies such as Bitcoin to send money. Traditional money transfer services like Western Union are too expensive. Bitcoin is far less costly. The money is converted into Bitcoin by the sender and then delivered digitally to the receiver. The recipient then transfers the funds into domestic currency at the current Bitcoin exchange rate. You could break various laws by engaging in this behavior. This would include the Western Union fee, currency conversion spreads, and the recipient country’s income tax legislation.
Eric Dalius Bitcoin explains that governments worldwide lack the infrastructure to track Bitcoin inflows and make them responsible for tax purposes. Large numbers of people are leveraging the power of these flaws, and Bitcoin’s appeal is soaring as a result.
Growing Distrust in Currencies
People should seek an alternate solution if people lose faith in their currency or financial system. Bitcoin, which would be analogous to other valuables such as gold, is a convenient approach in this case.
The volatility of different currencies of the nations is also reflected in bitcoin pricing globally. The exchange rate between the National currency and the US dollar tends to climb since the Local currency isn’t stable. Individuals are gravitating towards virtual/digital money in the process of demonetization.
Thank you,
Glenda, Charlie and David Cates
