Cryptocurrencies are at its boom but this was not the case ten years back. No one really knew about the uses and benefits of cryptocurreny. Bitcoins only existed as an appealing idea and nothing more.
As the time progressed, the value of this cryptocurrency soared. The value of one Bitcoin is approximately $15,000 right now. The one question that has been baffling a lot of people out there is:
Why is Bitcoin so expensive?
There are clear reasons behind the growth in the value of this currency. The value of Bitcoin is currently more than gold. Here are some reasons behind it.
- More and more people are adopting to the concept of cryptocurrencies. Applications and exchanges like Coinbase have been helpful in creating easy access to such currencies. They are now simpler and easier to buy than before. These services have also increased the profile of Bitcoins as tradable and viable assets unlike traditional currencies. This growth in popularity and accessibility has increased the demand as well which the current supply cannot cope with, hence increasing the price.
- Bitcoin is not the only digital currency in the market, however it is the most popular of all. There has been an ever-increasing hype about other currencies like Ethereum. These currencies are considered more reliable and as a better option over Bitcoin. The rise in other currencies have reignited further interest in Bitcoin.
- Global political turmoil have left people with the conception that traditional currencies will not survive in the future. This has led to a diversion to digital currencies like Bitcoins. Bitcoin is a decentralized currency not governed by any country make it less vulnerable to external circumstances. More people are considering this alternative to keep their money from devaluation.
- However these are not the only reasons, there are other external factors as well impacting the price of Bitcoin. Bitfinex is one popular cryptocurrency exchange that is having problems moving money from its Taiwanese based bank. Many experts have considered this as a reason for the growth in Bitcoins value. There are other news related factors that have a significant influence on Bitcoins price.
We have been witnessing an ever-increasing trend in Bitcoins trend. Now we know the answer to ‘why is Bitcoin so expensive’. Nevertheless, is it worth invest in this currency? This is just a matter of speculation. Many investors feel that the digital currency market will crash in near future while other experts consider it as the best means of investment.
Many investors consider other currencies as a better alternative to Bitcoin. You may consider investing in an affordable digital currency, since there are hundreds of other currencies that have crept into the market.
No one can determine for sure whether the current surge in price will last on for a long time or whether these currencies are subjected to volatility in which price will collapse badly within a few period of time. We will see this soon.