In recent weeks the price of Bitcoin has been seen to continue to march higher but what is driving this growth? It turns out that there were various factors that continued to make Bitcoin increase in value.
It will be used as a payment method in future :
While PayPal and Venmo are new to crypto, there are many other programs that allow its users to buy sell and hold. Popular competitors PayPal and Venmo, Square (SQ) and CashApp are also embracing crypto that make the Bitcoin audience wider.
Recently, PayPal announced that it will soon allow its users and merchants to buy, sell, hold, and accept Bitcoin and other cryptocurrency sets as payment methods.
This news pumped bitcoin higher immediately. PayPal has nearly 350 million users now who will be able to easily buy, store and use Bitcoin.Paypal cash transfering will increase 30 % after bitcoin releasing.
Apart from PayPal, this has other consequences. PayPal also have its second company names Venmo. Venmo has more than 40 million active accounts making access to Bitcoin and other cryptocurrencies very important.
Its shops are opened in different cities in different counteries.People withdraw bitcoin to physical cash in these shops.This will be very beneficial in near future for means of online payments.
Big Companies Buy Bitcoin :
A large financial services company plans to help its asset carrying customers to use Bitcoin , basically treating it like any other security. Meanwhile mastercard said it would process Bitcoin payments on its network in an effort to give businesses and customers a choice on how to purchase items. It will be used for shopping in near future.
The popular cryptocurrency recently passed this psychological key mark hitting $ 51,202 as of writing. Financial services companies Mastercard and BNY Mellon have announced new Bitcoin programs which help them put them at the top of this remarkable threeshold.
Their actions follow the announcement by Tesla chief executive Elon Musk that his company has bought Bitcoin worth $ 1.5 billion and will begin accepting payments in cryptocurrency.
Without their reliance on data, investors could be emotionally minded they tend to be the same racist as everyone else.Bitcoin will be the most expensive cryptocurrency in future which will be used for online payments in millions and billions easily.
Institutional Investors View Bitcoin as a Hedge of Inflation :
BNY Mellon, Mastercard and Tesla are the only recent boldface names that support Bitcoin. Paul Tudor Jones one of the nation's richest investors appeared on CNBC in late 2020 to make his case for cryptocurrency, citing concerns about inflation and the Federal Reserve. While inflation remains modest now.Tudor Jones's Bitcoin thesis seems to be based on the development of the coronavirus crisis since the beginning of 2020.
As Covid-19 spread to Europe and the United States from late February governments began imposing restrictions on the spread of the virus. Lockdowns slowed economic growth, eliminated the global economic downturn and major banks intervened to finance the country's economy.
In the U.S the Federal Reserve quickly reduced short-term interest rates to zero and began printing billions of dollars to capture the economy. As the economy recovers Fed Chairman Jerome Powell has announced that the Fed will allow inflation to continue even further before it considers raising interest rates again. The new strategy clarified new thinking and new research in the Fed regarding weak inflation.
Enter Paul Tudor Jones and other hedge fund anguies, who started buying Bitcoin in May in anticipation of a rise in currency.Tesla and other big name and big money investors recently bet on the store of value the Bitcoin demand which began to dominate around 2017. Bitcoin transactions can be very expensive to use to pay for a cup of coffee.
The argument goes away but they create a good bank account especially since Bitcoin (no doubt) does not match other commodity prices.It is also important to acknowledge that the current implementation was aided by excessive and monetary policy as well as a lack of strong unpredictable investment opportunities in the entire market.
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