TR;DR Breakdown:
- Investors should invest in BTC amidst the presence of other crypto assets.
- Paypal’s involvement spikes BTC price.
BTC value may increase to $40000 if all S&P 500 companies distribute just one percent of their possession to the cryptocurrency, according to a recent study by Ark Investment Management. If these companies invest up to 10% in the cryptocurrency, BTC value may increase to $40000.
In recent research by Ark, dated the 1st of December, 2020, BTC‘s value skyrocketed after two companies (Square and Microstrategy) acquired the crypto asset. Therefore, as support for bitcoin increased, The value of bitcoin hit an all-time high in late 2020.
BTC value dominates other traditional assets
In the past decade, bitcoin is the only crypto asset that exhibits lower correlations than other cryptocurrencies. However, search results show that the interest in BTC value is relatively low compared to its increase. Hence, according to Google data, search results were meager even as Bitcoin prices hit an all-time high.
Additional info from AIM reports that Bitcoin is worth the risk of investment. The report suggests that BTC value may increase from one billion dollars to 500 billion dollars or more in the next five to 10 years.
Similarly, AIM claims that crypto investors should not pass on the opportunity of replacing Bitcoin with other crypto assets. However, the study shows that the acceptance of Bitcoin could well set the stage for other cryptocurrencies like Ethereum.
Significant implications for BTC value as top names enter cryptocurrency industry
With BTC value increasing significantly, there are growing fears that its acceptance, which draws many big names, may be of great advantage. Presently, Paypal has introduced its trading platform to its eligible customers, and it is planning to widen the service to all its users worldwide.
With Paypal’s transaction percentages surging up to 38 percent from last year’s records, reaching 247 billion dollars, this is excellent news for Bitcoin as the price of Bitcoin may yet increase as well, given that it is the most sought after crypto asset.
In response to the economic decline caused by the global pandemic, Square and Microstrategy invested 50 million dollars and 425 million dollars, respectively. This again gave an increase to BTC value, and according to crypto researcher Willy Woo, even with the crypto market being relatively new, the market is set to grow big in terms of consumer adoption.
