For so many years, people relied on banks and governments for various financial policies. These policies often carried added or hidden fees which made people spend a lot more money than required. Frustrated with the current situation, the people decided to use technological advancement and create a self-sustainable currency. And so Bitcoin was born.
During its peak, Bitcoin had a worth of nearly $20,000. After reaching its full potential in December 2017, the value started to drop. Today, every Bitcoin is worth around $9,000. The reason why people decided to use this cryptocurrency is because it helps them avoid any unnecessary fees and all transactions are anonymous. There are many more benefits that came by using this cryptocurrency and you can learn all about them at this Bitcoin Revolution website.
One of the most frequently asked questions these days is whether Bitcoin’s value will once again spike and go over $20,000. Of course, there are some things to take into consideration, like the recent COVID-19 outbreak. Let’s break it down.
Will it Reach $20,000 This Year?
There are a few reasons as to why many believe that Bitcoin will have another spike this year and increase its value to as much as $20,000. The first key factor here is institutional interest. More and more online businesses are open to the idea of using Bitcoin as a payment method. Many of them already implemented the cryptocurrency and are extremely pleased with it.
Bitcoin is also the most stable cryptocurrency and it dominates the crypto market. There are plenty of other currencies like it, but none of them has the value and stability like Bitcoin. Lastly, we wanted to mention its volatility and hash rate. Recently, Bitcoin had the second-lowest volatility month. This may sound bad, but it can mean quite the opposite. Statistics have shown that each time Bitcoin and low volatility, it’s value spiked right after it.
The hash rate is the measure of the computing power in Bitcoin’s network. This rate reached its peak in 2018 and started plunging right after it. In the last year, the hash rate finally stabilized, which is why it’s believed that Bitcoin has the potential of hitting the $20,000 mark this year.
Did COVID-19 Have An Impact?
Even though many people believe that COVID-19 had a bad impact on this industry as well, that might not be the case. All of us need to stay at home as much as we can and use the Internet to purchase goods, rather than going to the stores. Since the pandemic hit the world, the number of online transactions increased massively and it helped cryptocurrencies like Bitcoin have increased traffic.
Judging from the current situation, the coronavirus helps Bitcoin in the number of transactions, thus increasing its value, popularity, and stability. All of these factors combined are the reason why many experts believe that Bitcoin will rise to power once more.