If you have been following the news lately, I am sure you know Bitcoins’ value is breaking records every day. When Bitcoins first came under the spotlight, it was only $0.0008, and now as I am writing this blog, the value of one Bitcoin is a whopping $31,220.
So, it is not surprising at all to predict that Bitcoins might soon reach a staggering $100,000. Now, as you have opened the link to this article, I am guessing you are a crypto trader, or you also could be a youngster who likes to keep a keen eye on the crypto industry.
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Four Reasons Why Bitcoins Will Reach $100k By the End Of 2021
There are several factors that can be attributed to the soaring value of Bitcoins. One of the prime reasons is inflation, but there are a few more as well. Without wasting a second more, let us take a look.
Bitcoins are free from inflation since there is only a limited number of Bitcoins that can be mined. It is quite unlike fiat currencies, where more and more notes are brought into circulation every year.
This unique feature of Bitcoin is proving to be very lucrative for investors, and therefore more and more investors are showing interest and buying them in lots.
A bull run during COVID-19 pandemic
The COVID-19 pandemic has a lot to do with the soaring value of Bitcoins. The impact of COVID-19 on people’s lives and their livelihood had been quite disastrous, and the Bitcoins were not spared as well. When the government imposed pandemic lockdown as announced, Bitcoins’ market crashed, and the value of one Bitcoin fell down to $3000.
Investors thought that Bitcoins’ time was over, and they started selling off their Bitcoins at very low prices. But investors with a strong vision released Bitcoins’ true potential, held on to their Bitcoins, and started burying more Bitcoins since the prices were low.
Since more and more investors were buying Bitcoins, a bullish effect was generated in the market, which stabilized the Bitcoin market and made Bitcoins prices reach new heights. The prices of Bitcoins have been on the rise ever since.
Gone are those days when cryptocurrency was seen in a bad light. When the concept of cryptocurrencies first came into existence, it was thought to be a scam. People owing Bitcoins were often frowned upon. Most Governments of the European and North American nations have welcomed the concept of cryptocurrencies with open arms.
In the US, Bitcoins are considered to be property, and hefty property taxes are imposed on Bitcoins. Germany has taken a step further and has accepted Bitcoins as a substitute for fiat currencies. Russia is soon about to launch its own cryptocurrency called ‘Crypto ruble.’
The support and acceptance of Bitcoins from the Government have made people invest in Bitcoins and view Bitcoin as a lucrative investment option. This is why Bitcoins prices are soon about to reach a $100k
Stimulus Packages and the weakening US Dollar
Since March, the US Government has been releasing stimulus packages to aid the people that were affected the most by the COVID-19 pandemic. While it was undoubtedly a spectacular gesture from the US Government, it also meant more fiat currencies needed to be printed in order to fill the void made by the stimulus packages in the US Economy.
Since more fiat currencies were brought into circulation, inflation took place, and there was a significant hike in the prices of goods and services. All in all, it has weakened the value of the dollar by a lot. Since the value of dollars is diminishing, people are turning towards Bitcoins as there is no scope for inflation in Bitcoins.
There you go, above was the top four reasons why the price of a Bitcoin might reach a staggering 100k by the end of 2021. Financial experts have already predicted that Bitcoins will soon be used as an alternative currency in the US.