Does Bitcoin Price Reaching US$100k Make Sense?

Bitcoin price

Bitcoin is undoubtedly the preferred cryptocurrency investment. From corporate investors to private investors, they all have a soft spot for it. With the highest market cap, Bitcoin matters like no other. Over the years, Bitcoin has had many ups and downs. Despite the volatility, investors continue to invest in it because they know that the returns are promising if held for a significant period of time. The real question that arises now is: does the $100k Bitcoin price make sense? Simply put, the answer to this question is quite subjective as it depends on what an individual investor has to say.

In order to understand whether Bitcoin’s price is sufficiently justified or not, it is important to understand the factors responsible for determining its price.

Ask for Bitcoin

As many people know, there can be a maximum of 21 million Bitcoin in the network and more and more investors are doing everything they can to buy Bitcoin. With the increasing demand, what comes with it is the rise in the price of Bitcoin. Well, if this has to be justified then Bitcoin price reaching US$100k makes sense.

Acceptance of Bitcoin in different countries

Since Bitcoin was launched, there has been a constant debate about its adoption in different countries. While many countries are not in favor of cryptocurrencies, there are some that have opened doors to cryptocurrencies, including Bitcoin. As countries continue to ease restrictions on Bitcoin, the demand for it is increasing day by day. This is why the price of Bitcoin touching US$100k is not that hard to digest.

Institutional Acceptance of Bitcoin

Today, Bitcoin is considered a safe asset against market volatility and inflation. With many companies converting their coffers to cryptocurrency, it is quite obvious that the price of cryptocurrencies is rising. Well, that seems like a good enough point to support Bitcoin’s rising price.

Easy public accessibility

For investors, cryptocurrencies serve as a store of value and a medium of exchange. Initially, they started out as a legitimate payment method, but over time they have established themselves as a new asset class over the past decade. Bitcoin is very easily accessible and the fact that investors view it as a better store of value and a hedge against inflation makes it one of the most expensive assets to own.

Simply put, if the rising Bitcoin price has made you wary and you finally think it’s probably too late to invest in Bitcoin, it’s time you realized that this is just the beginning. In the coming days, the prices of not only Bitcoin but also several other altcoins are expected to rise.

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