Do you know that bitcoin is becoming mainstream in the crypto space? Well, there are thousands of other cryptocurrencies but the rally continues to bitcoin. Although the value of bitcoin is very high today, it is still the best choice for investors. This is not only because of the past performance of bitcoin, there are many other reasons for which bitcoin is the best digital asset in 2020.
In this article, I will be sharing the top five reasons that will show you why bitcoin is becoming mainstream. Before that, let us know a little bit about how the value of bitcoin has been affected by the coronavirus pandemic. In March 2020, the value of bitcoin had gone down to $4K from a value of around $10,000. This is the highest ever drop in the value of bitcoin in its history. However, the value of bitcoin has now surged up to its previous range that is $10K. Now here are five major reasons for which bitcoin is becoming the mainstream in 2020.
Referred to as Digital Gold
Gold is referred to as a safe haven asset during any financial crisis. The COVID-19 pandemic is the biggest ever crash in the history of the crypto market. As a consequence, every investor got scared and looked for a safe haven asset in the crypto market. After the conversation with many crypto traders we come to know why there are so many cryptocurrencies and they recommended that bitcoin is the best digital asset in this pandemic situation. Because it can be hedged against the upcoming inflation. Last year there was a rumor that bitcoin referred to as digital gold, now is the time of bitcoin.
Bitcoin Halving 2020
Every bitcoin investor awaits for the most important event of bitcoin that is bitcoin halving. This is an event that occurs every four years and investors predict the value of bitcoin rises before and after bitcoin halving. This opinion of investors has a positive impact on the price of bitcoin. For that reason, bitcoin is having more number of investors as compared to other cryptocurrencies.
One of the biggest reasons for bitcoin is becoming mainstream in investment is due to institutional money. As institutional investors are now interested to invest in bitcoin so the value of bitcoin is going to soar up in 2020. Although institutional investors are also looking for different cryptocurrencies their prime focus is on bitcoin. So if you want to invest in the crypto market then consider bitcoin first.
Experts Predictions that Bitcoin Can Reach $1 million. Former Facebook executive, Chamath Palihapitiya who is the founder and CEO of Social Capital predicts that the value of bitcoin may cross the one-million-dollar mark. He has been involved in the crypto market since 2013 and he heavily invested in bitcoin in his investment career in the crypto market.
Another famous personality John McAfee, founder of McAfee Associates also believes that bitcoin will touch the $1,000,000 mark. So, this shows that bitcoin is one of the most demanding and best digital assets for 2020. Even though its value is very high, investors are ready to take its value to the $1 million marks. So, if you want to earn a huge profit from the crypto market then joining the next bitcoin revolution.
The Launch of Libra
Recently, social media company Facebook launched its digital currency in collaboration with Libra Association. This has become the hottest topic on the internet. Everyone is now looking at Libra as a competitor of bitcoin. However, you might be thinking that the value of bitcoin will decrease due to Libra. In fact, nothing is certain and you can’t say what will be the value of bitcoin in the future. But one thing for sure, people who were not aware of bitcoin, come to know about bitcoin because most of the people are connected to Facebook.
All of the above reasons suggest that bitcoin is the best digital asset this year. As I mentioned above, institutional investors are primarily focusing on bitcoin, so the value is going to break the all-time high in 2020. Further, bitcoin is playing as a safe haven during this pandemic. So what’s your take on bitcoin’s performance in 2020?