5 Reasons for the Value of Bitcoin
Since Bitcoin passed the 2000$, more and more people have heard about Bitcoin as such. Even a lot of my friends and colleagues, who are not into crypto currencies, have heard of it. One reason would be the quick possibility to get rich. Usually, people get attracted by these kind of news. And as simply as that: It is true, Bitcoin was once (not a long time ago!) at a few dollars and now, has just passed the 2700$! Bitcoin is now 8 years old. The obvious question for me is how is such a strong rise in value in that short period even possible? And a very important question, will it go on like that? I will give you five reasons, why it will raise further of the next years!
1. Awareness Level
First of all, Bitcoin was the first crypto currency out there. It is the oldest coin on the market out there. Back then, a lot of coins had been simple copies of Bitcoin’s. 2013, Ethereum was the first currency with the new concept of smart contracts, which is a reason for the value of Ethereum today – 180$.
Since Bitcoin was on the market a long time, and respecting the rapid development of software nowadays, it has also gained a lot of attention and acceptance. You can use Bitcoin to pay in thousands of stores around the world. That is truly valuable and useful. One reason for the high number of point of sales is surely that Bitcoin was the first one and well, it is simply well-known. Additionally, Bitcoin is pushed a lot by evangelists, who are supporting it as the new way out of Fiat currencies like EUR or USD. And remember that acceptance will raise the value of Bitcoin!
3. Easy to get into Cryptos
There are hundreds of crypto currencies out there already. However, Bitcoin is the one you can get at a lot of websites and even offline. If you search on the web for “purchase Bitcoin”, there will be hundred results of providers that accept PayPal, Credit Cards and a variety of other paying options. If you would have searched for something like TrumpCoin, you would have a hard time! Even Ethereum cannot be purchased at that many providers as Bitcoin. Ultimately, all of that means that Bitcoin will be purchased.
4. Trading Currency
Bitcoin is not only the entry to cryptos, but it is the coin with the most trading pairs. That means, the option to exchange Bitcoin into another currency. 90% of all crypto currencies (and 100% of the important ones) are exchangeable to Bitcoin. You can compare the situation with USD. Now, USD does not have such a crazy value difference to other currencies, but USD is responsible for 85% of the trading volume of all Fiat currencies in the world! Bitcoin is usually about 25% of the volume per day in the crypto world. That is not as much as USD, but definitely a powerful position.
The psychology of the holder plays a tremendously important role in the value of the Bitcoin. I have experienced a lot of other Coins gaining value solely by a hype which started in a random Telegram chat. But Bitcoin is just way more persistent. It is beginning to sneak into the thinking of people. But the current perspective ofowners is lovely: They believe the value of Bitcoin is multiple thousands. And just that attitude, that they truly believe in this value of thousands of dollars, the value will raise more. That is just a short excerpt, but more about this idea you will find in the book “The Crowd: A Study of the Popular Mind“.
…and what do you think?
Of course, I am biased as an owner of Bitcoin. I will talk good about it in order to raise its value even more 😉 There we are at the psychology again. But, besides all the aforementioned facts, what do you believe is responsible for the value of the Bitcoin? Let me know about that in the comments below.