TL;DR Breakdown
- Bitcoin has maintained its upward trend for a year.
- Bitcoin will gain value if it is adopted as Digital Gold.
Bitcoin has had a incredible journey since it was created 11 years ago, especially last year. The COVID-19 outbreak not affected the BTC value only but also helped merchants consider it.
Right away, you can see how the Bitcoin trend has been for fans since last year, improving its performance.
A short reaction
Bitcoin has risen its capitalization by 612% in the last year. This implies that if you had invested $1000 in Bitcoin last year today, you would have around $7100 in profit.
In the period, the S&P 500 rate, which is taken as the best performance indicator in the market, showed a 50% return. Many stocks increased in value from last year as the market supported the beneficiary companies. However, there are few stocks with good performance in the same line as Bitcoin. It is sensible to say that Bitcoin has been a success to invest in since last year for stable traders.
Reasons Bitcoin has been a success in the market
You can’t snoop through the news about BTC last year. But there are three reasons the asset has succeeded in the market:
• Investors have made trading a higher priority since last year. With the COVID-19 pandemic, people had to look for alternatives to earn money at home. The most profitable option for these investors was to enter the stock market.
• 2020 saw communion between digital assets and major companies, including Tesla, MicroStrategy, and Square. Elon Musk, Kevin O’Leary, and Marc Cuban are the promoters of this investment movement, attracting new traders.
• BTC enters the market with a higher priority because of its global acceptance. Now you can pay with the asset, and how to obtain them is simple, even on the PayPal platform.
Will Bitcoin keep rising?
It is a significant doubt that many investors and companies have been holding for weeks. If BTC goes from being a decentralized currency to a store of value or digital gold, the objective is clear, strengthening its upward trend. There is the solidity to say that Bitcoin will reach $500000 in value or even more. However, if the asset does not transition, its entire trend may go down.
No investment that can give you 7x in return for a year has volatility and risks. To join the market with Bitcoins or other assets, you must know how everything works.
