Business and Finance Blog | Investing In The Wealth Of Your Future

Why Was There a Surge In Bitcoin Recently?

Bitcoin is the frontrunner when it comes to cryptocurrency. While Bitcoin has been around for some time now, it continues to surge in popularity. If you’ve been paying attention, you may have noticed that the price for Bitcoin has been going up very quickly. There are several reasons for this. Here are a few of them.

Reasons For Bitcoin’s Surge:

1. Broke Resistance

One of the main reasons it has skyrocketed in value has to do with the fact that it broke a key resistance point recently. Investors that use technical analysis are likely to be very ‘bullish’ on Bitcoin if it looks good from a technical perspective. Likewise, everyone looks at the same charts. Therefore, you have a bunch of people seeing the same thing. The charts can tell you a lot of the story. Bitcoin was being held back by a resistance level and just like a stock when it breaks it, the flood gates open.

2. Better Acceptance

Another reason why Bitcoin has continued to surge is due to the rumors and the news coming out among heavyweights in the space like PayPal. You have big players in the financial industry like PayPal and even Square who are adopting a digital currency as the future. This alone has made investors look at Bitcoin even more favorably. After all, if the big players in the space are already doing what they need to do to position themselves for widespread adoption, it is likely coming. Therefore, it is giving investors a reason to jump in right now before it gains mass adoption.

3. Inflation Worries

Inflation is something that investors are always worried about. As the dollar continues to suffer from inflation, investors are looking for ways to hedge against it. As more money is pumped into the economy, the dollar’s value decreases. This happens at a rate of around 2 percent each year. This is what pushes a lot of investors to things like gold or silver. If you are invested in other assets, you can minimize the loss you experience from inflation. No one likes to see their money decrease by 2 percent. While it doesn’t sound like much, that 2 percent compounds year by year and it becomes significant. By buying Bitcoin or another form of digital currency, you can effectively hedge against inflation because Bitcoin won’t suffer the same devaluation that is happening to paper currency.

As you can see, there are plenty of things that are leading to the rise in Bitcoin’s price. The fact is, the price is likely to only go up as more banks and more institutions come on board. It is clear to see that digital currency will be the way forward. While not everyone is as ‘bullish’ on the potential of Bitcoin, many investors are. Because Bitcoin’s supply is limited, it will continue to drive up the price as long as investors maintain the same enthusiasm going forward. It will be interesting to watch, to say the least.

References:

[1] https://www.statista.com/statistics/244983/projected-inflation-rate-in-the-united-states/

All You Need To Know About NFTs.

Non-fungible tokens (NFTs) have become quite popular in 2021. Native NFT platforms such as ENJIN, Rarible and Terra Virtua have hit their all-time high this year. So, what is NFT, and why all the fuss? Why is everyone talking about them? If you are confused about what NFTs are and how they can help you in your investment journey, then read on. Below is a comprehensive guide.

What Are NFTs?

A non-fungible token is a unique blockchain-based token that can represent anything, even physical assets. They represent tangible and intangible items such as digital sneakers, sports cards and even virtual real estate. Their popularity stems from the fact that they can tokenize anything and provide an easy way to transfer digital assets ownership. NFT is a unique token that is generated cryptographically and cannot be replicated. They differ from the other popular cryptocurrencies that have been there in the market, such as Monero, Bitcoin and Ether, as these are fungible, meaning you can exchange one for another. This means that no two NFTs are identical, even though they may be on the same platform. An easy way to think of them is like festival tickets. Each ticket has specific information, such as the purchaser’s name and the date and venue of the event. Hence, it is difficult for them to be traded with one another.

Key Characteristics Of NFTs.

• They Are Indivisible.

NFTs exist exclusively as whole items; hence they cannot be divided into smaller units like bitcoin. You can either purchase the entire amount or nothing at all.

• They Are Verifiable.

They do not need third party verification as they can be authenticated easily. This is possible because digital artwork can be traced back to the original creator. Since they use decentralized platforms, no owner can alter the data once it has been committed.

• They Are Non-Interoperable.

You cannot use one NFT in a particular game and use it in another. For example, a Blockchain Heroes card cannot be played in the Gods Unchained game.

• They Are Indestructible.

NFT data is usually stored via smart contracts on the blockchain. Therefore, the tokens cannot be destroyed or replicated. Also, it is not the companies that create them that have ownership to the NFTs, but the gamers and collectors.

Why Are NFTs Worth Millions?

NFTs gain their value from the fact that they are limited and cannot be duplicated. This makes them quite rare, hence why people sell them for millions of dollars. Since they are easily verifiable and can be traced back to the owner, the owners can possess the individual digital assets knowing that they are authentic and unique.

Their value also stems from their immutability, as they cannot be duplicated, destroyed or even deleted. They exist on their native platform that is stored on the blockchain.

Non-fungible tokens are the future. Their uniqueness and value make them stand out and are attractive to investors. They also make it possible to digitize property rights and tokenize all assets in the future.