- Bitcoin strength increases with fiat and economic growth.
- Data shows that Bitcoin’s price strengthens with economic stability.
- While mass adoption has increased due to the COVID-19 pandemic.
In recent years, the Bitcoin strength increases by many folds with the increase in economic stability and dollar prices. Although the mass adoption has seen a rise that is not specific to Bitcoin but rather paperless currencies and the success of Digital Yuan pilots is a tantamount proof of the same.
The most popular cryptocurrency worldwide, Bitcoin, is now enjoying a new All-Time High (ATH) in 7 countries, namely Argentina, Angola, Brazil, Sudan, Turkey, Venezuela, and Zambia. This, however, is just the sliver of the full scope, at least in Turkey.
Commonly measured against a base or reserved currency, Bitcoin strength is mostly opposed to the US Dollar, albeit falsely. The current value of BTC is slightly above the pinnacle rate it was at in the 2017 year-end. ATH recorded in Turkey recently was in Turkish currency Lira who’s value against USD has altered significantly similar to Bitcoin.
Bitcoin strength and fiat prices
A look at Bitcoins market stake in 2017 reveals it’s valued to be at $19,000 or 75,000 Lira. In current times, 82,000 Lira is approximately equal to $10,000. When the dollar rate is 45 percent cheaper than 3 years ago, BTC reaches an all-time high record. This proves Bitcoins stake clearly depends on a fiat currency drop or some political or financial crisis.
The news of PayPal extending its product line to include crypto dealings provided just the right PR for Bitcoins value to cross $13,000 despite its also saying that crypto transactions will remain under PayPal authority exercising a decentralized strategy.
This, however, will not whack the current pricing situation, but when regulations and standard testing comes in, BTC transactions will be much more centralized and easy to trace. Transfers and payments on the Bitcoin platform are, to a great extent, anonymously done at the moment, but this may change once regulations are slapped across the network.
Price volatility and uncertainty may most likely cease to exist once the centralization occurs and may turn the cryptocurrency into a tech stock or an alternative investment platform.