Bitcoin is one of the most popular cryptocurrencies of all time. People know about bitcoin primarily because of its store value, and many people still consider bitcoin as an investment asset. However, the foundation of bitcoin was exceedingly different. Nevertheless, Satoshi Nakamoto, the so-called inventor of bitcoin, did invent bitcoin as a virtual cash system that facilitates transactions between the sender and receiver.
There are no third parties and intermediates between the bitcoin complex, and a peer-to-peer network regulates the entire Bitcoin network. The peer-to-peer network of bitcoin has many computing entities, and these entities run as nodes of the system.
The nodes allow you to transfer currency without the involvement of higher authorities. As of September 2021, bitcoin has experienced phenomenal growth. Some authentic websites like Bitcoin Digital can help you get profitable results in your bitcoin trading venture. The store value of bitcoin at the first purchase using bitcoin as a payment method was just $0.042, and the current market value of bitcoin is nearly $50000.
Undeniably there is a massive surge in bitcoin’s market value, but what is deriving such a gigantic surge in bitcoin’s store value? Here are some of the prominent reasons why bitcoin store value keeps going up. So why are you waiting? Let’s jump straight to the facts.
Bitcoin has a capped supply. Satoshi Nakamoto, the inventor of bitcoin, issued bitcoin with a limited supply as bitcoin miners can only mine 21 million bitcoin units. Bitcoin halving event decreases the block reward of bitcoin mining every four years.
In a nutshell, bitcoin halving refers to a leap year event that declines the block reward of bitcoin mining by half once miners mine 210000 blocks. Inflation refers to a change in money supply; some people define inflation as an inclining in the value of goods. However, bitcoin halving decreases the inflation of bitcoin by half every four years.
Bitcoin halving will continue until bitcoin miners mine the last bitcoin ever in 2140. After every bitcoin halving, the store value of bitcoin inclines to an exceeding extent. For example, after the first bitcoin halving, the store value of bitcoin reached a milestone of $1000.
After the recent bitcoin halving, bitcoin touched its all-time high in April. Bear in mind that bitcoin’s store value does not surge immediately after bitcoin halving. Bitcoin halving is deflating bitcoin by decreasing its supply, and bitcoin is getting scarcer after every bitcoin halving. Due to bitcoin’s high demand and its decreasing supply, the store value of bitcoin is going up.
You are familiar with the fact that the foundation of bitcoin as a store value is constantly increasing. The prominent reason is that retail investors are investing in bitcoin, and multinational companies, organizations, and entrepreneurs hold bitcoin.
Some of these institutions are holding bitcoin publically, and some of these institutions are holding bitcoin privately. The leading public investors of bitcoin are Micro Strategy, Tesla Motors, and Square.
Micro strategy recently bought 5050 bitcoin units. Tesla motors has invested almost $1.4 billion in bitcoin.
From merely an investment asset and currency for the dark world to a national currency, bitcoin is getting more and more mature every day. Bitcoin payments are one of the significant monetary systems. Several companies and institutions are now accepting bitcoin as a payment method.
Not only bitcoin, but technologies like blockchain and peer-to-peer networks present in bitcoin are acquiring an exceeding extent of institutional involvement. For example, Satoshi Nakamoto released bitcoin in 2009, and it touched the market cap of $1 trillion in just nine years.
All the more, El Salvador has adopted bitcoin as a legal tender in the country. To sum up, El Salvador is the first country to have two national currencies; the first currency is a dollar, and the second is bitcoin. El Salvador’s decision to adopt bitcoin as a legal tender is tempting other countries as well.
El Salvador adopted bitcoin as a legal tender to reduce the transaction fees of remittance, to hike employment and the economy. As a result, Bitcoin payments are spreading like a forest fire across the globe.
These are some of the prominent reasons why the store value of bitcoin keeps going up.