Article Top reasons why Bitcoin price is rising so much
PayPal and cryptocurrencies
PayPal is one of the biggest payment platforms worldwide with almost 400 million customers worldwide. Not long ago, Paypal was against cryptocurrencies as there were cases where client accounts were closed due to making transactions related to cryptocurrencies. But it seems like all of that changed and the end of 2020,Paypal introduced cryptocurrencies on their platform. Every US user of PayPal can buy and sell cryptocurrencies directly withing PayPal platform and merchants can also accept payments in cryptocurrency.
With PayPal and other payment platforms supporting bitcoin and cryptocurrencies, more and more people are interested in buying them as it is not only easier to do that but also safer.
Big institutions accepting cryptocurrency
It all started with Square, a payments company, buying bitcoin worth of 50 million dollars. This was followed by another American company called Microstrategy which bought bitcoin worth of 400 million dollars. And at the beginning of this year Tesla broke the ice and invested 1.5 billion dollars into bitcoin. More and more companies start investing their money into bitcoin as they consider it a great store of value in comparison to cash. With this type of companies investing billions of dollars into bitcoin, it's not only boosting bitcoins popularity but it is also helping people trust cryptocurrencies more.
Governments have also shown interest towards cryptocurrencies since companies started moving billions of dollars from cash reserves into cryptocurrencies. Therefore multiple countries have announced their interest in developing their own digital token.
Limited supply and halving
We all know bitcoin and most cryptocurrencies on the market have a limited supply.
Bitcoin supply is limited to 21 million bitcoins but the interesting thing is the fact that it is getting harder and harder to optain new bitcoins because of the halving process. Every 4 years the reward for every block mined by a miner is cut by 50%, therefore less and less new bitcoins will be available on the market. This makes bitcoin more and more valuable as the difficulty of optaining it is getting higher and higher as time passes.