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Exactly one year ago, the start of the coronavirus pandemic caused Bitcoin to plummet to the $3800 level. At the time, most crypto-enthusiasts were very upset by the move and many considered leaving the crypto world. What do we see now? Bitcoin is breaking records and has whistled past the $60,000 mark.
BTC
One has to wonder if Bitcoin will have any correction at all in the near future, or if the trend is simply unstoppable. Is it even possible to find a Bitcoin equilibrium rate?
Too many questions arise when we try to analyse this cryptocurrency in any way. Bitcoin is not a company, it has no assets, it does not make a profit and it does not create anything revolutionary.
The value of Bitcoin is now shaped solely by interest in it. The more information is written about it in the news, the more it is available to buy, the greater the demand. Already in the US, the number of ATMs through which Bitcoin can be bought is growing at an incredible rate. This makes the cryptocurrency more accessible. The issue of allowing legal entities to invest in Bitcoin is also being addressed, because in most cases, cryptocurrency exchanges refuse to work with them and focus only on individuals. To do this, companies are created that offer access to cryptocurrencies without buying them. The company puts the value of the cryptocurrency into its share price, and now any other entity can easily invest in it.
Bitcoin is becoming popular at a record pace. More and more companies are trying to pick up on this trend and incorporate cryptocurrencies into their ecosystems. Most of the time, this trend is based on profits. Everyone wants to make money from the hype and the good trend, so they are doing everything they can to make it happen. As long as Bitcoin is in demand, its price is unlikely to correct significantly. The usefulness of Bitcoin in day-to-day use, be it for purchases or some kind of transfer, is questionable, though. Online commissions are as high as 2% of the amount, you pay less commission, you can wait 24 hours for transactions. The difficulty in creating wallets and the possibility of losing money because of a forgotten phrase does not make Bitcoin a tool for every day.
We should not forget that the cryptocurrency market still lacks serious regulation and is heavily influenced by the news background. If you smell another crisis somewhere, the cryptocurrency market will go down faster than any other market.
What’s in store for us today?
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