The value of Bitcoin has skyrocketed since its debut in 2008. This digital currency invented by Satoshi Nakamoto, whose identity is still unknown, inspired the next digital currencies, altcoins, with the blockchain technology behind it.
It comes from the fact that it is a very useful currency as well as blockchain technology on which it is based on the main source of bitcoin value. Bitcoin has all the features of money; durability, portability, interchangeability, scarcity, divisibility, and recognizability, regardless of any physical structure and central structure.
Why Bitcoin Price Is Rising
The price of Bitcoin, which contains all the features that a currency should have, is determined by the investors who use it.
Other reasons affecting bitcoin price are listed below
- Limited supply and high demand are the biggest factors in reaching these prices.
- Bitcoin supply is limited. The number of Bitcoins in the world currently is 18.4 million, and when it reaches 21 million in 2150, more will not be produced. It may take more than 120 years to reach the 21 million limit.
- Considering that the supply of Bitcoin decreases by half every 4 years and the demand is increasing day by day, it is expected that the price will increase even more in the future.
- Technological advancement: improvements in security, anonymity, usability, and user experience, as well as new features, can increase the use of Bitcoin and positively affect its price.
- Favorable regulations: If governments support the use of Bitcoin, this will increase their price.
- New business solutions may emerge that increase the demand for Bitcoin.
- Public perception: If more people come to see Bitcoin as an attractive currency or asset and come to trust it, this will increase the demand for it and therefore its price.
Why Is Bitcoin Valuable?
- Bitcoin Supply: Unlike traditional fiat currencies that can inflate before they run out, Bitcoin brings a digital limit with it. Bitcoin supply is limited. The number of Bitcoins in the world currently is 18.4 million and when it reaches 21 million in 2150, more will not be produced. It may take more than 120 years to reach the 21 million limit.
- Divisibility: A single Bitcoin can be divided into 100000000 Satoshi. One Satoshi is equal to 0.00000001 BTC, currently Bitcoin's smallest unit. The pod at this level is embedded in Bitcoin's original code. If there is a need, the division level can be changed to 16 or more decimal places, meaning that Bitcoin offers an infinite degree of divisibility.
- Portability: Bitcoins can be transferred via a communication channel such as the internet, satellites, and even radio waves, making it the most transferable currency ever to exist.
- Interchangeability: Regardless of who and what is on the background, every Bitcoin has the same value as its counterpart. Just like an ounce of pure gold is always equal to another ounce of pure gold. Regardless, a Bitcoin remains a symbol of value that can be exchanged for another Bitcoin.
- Durability: Any Bitcoin or Satoshi can be reused countless times without spoiling.
- Recognizability: More and more users are familiar with and accepting Bitcoin. This makes Bitcoin the most popular cryptocurrency in the crypto industry. It is used as a payment instrument in many places.
- Decentralization: No single organization controls Bitcoin. It is not even possible to confiscate your money. In short, with Bitcoin, your money is only yours.
- Accessibility: You do not need to have a verified bank account to own or accept Bitcoin. All you need is an internet connection.