It is mid-February 2021 and Bitcoin (BTC) has yet to break another record. While this aggressiveness is seen with a lot of skepticism especially from analysts and observers who claim it as a ‘side show’ of some sort, it goes to show the potential of its growth in the months to come.
Going where no price has gone before
BTC controls more than half of the cryptocurrency market globally. With the new recordset, it is on course to reach the US$1 trillion market capitalization as many might have predicted. Growing steadily over 8% each week, the price for BTC has been hovering around the US$50,000 mark and that is a clear sign of intent that BTC is definitely moving in the right direction.
Growing confidence and acceptance among investors
One of the main reasons why the price of BTC has been steadily growing is fuelled by higher acceptance among investors. Among the names that have been dropped include companies like BNY Mellon and Mastercard. Even Tesla has joined the fray. According to CoinMarketCap, a leading cryptocurrency data website, the gains will push BTC’s market capitalization to around US$982 billion which is extremely close to the US$1 trillion mark. However, if all the digital coins are combined, the value could well be over US$1.5 trillion for sure.
Even if this is so, observers remain cautious. While more regulators have joined the bandwagon to recognized its influence, analysts still feel that cryptos are too volatile and are still limited when it comes to being used for commercial purposes. The more it is used for commercial reasons, the more related it is to economic changes and that could somewhat build a certain level of stability to it. But to date, that has yet to materialize. To put that into context, Tesla recently bought some US1.5 billion worth of Bitcoin.