Bitcoin Price Surging This Week – 5 Great Reasons To Buy Bitcoin Now
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Bitcoin (BTC) rose as much as 7.47% in the last 24 hours. The top premier asset has been on a winning streak all week long and is currently trading at $39,836. This article highlights reasons why you should buy Bitcoin right now.
1. Bitcoin Is The Most Decentralized
Bitcoin is the most decentralized crypto protocol in the world right now. Per data from Bitnodes.io, there are over 12,000 distributed nodes around the globe validating transactions on the Bitcoin network. This makes it censorship-resistant and secure with no central authority in place.
The appeal surrounding the digital asset has been its deflationary mechanism. Institutional investors have since dubbed it the ‘digital gold’ due to its ability to store value and hedge against inflation. Several investors buy Bitcoin due to this uniqueness.
Bitcoin dominates about 69.33% of the cryptocurrency market against its competitors, according to data from the Real Bitcoin Dominance Index.
2. Most Liquid Digital Asset
In addition to its decentralized feature, Bitcoin is also the most liquid investment asset out there. Unlike other cryptocurrencies that may have exceptions on where to purchase them, Bitcoin can be purchased in almost all trading platforms, exchanges, and online brokerages, making it an ideal investment.
Only one is green. The wrath of #bitcoin as liquidity provider to all the other #cryptoassets. pic.twitter.com/AHyPI0BCKl
— Chris Burniske (@cburniske) April 6, 2017
When you buy Bitcoin, you know you can always convert it into cash quickly and easily. The high liquidity associated with Bitcoin makes it a great investment asset. There are many factors that affect the liquidity of a digital asset.
Trading volume is one. An asset with a larger trading volume is a good indication of how liquid the market is. Bitcoin has a higher trading volume than other assets because of several factors. One is that many people are interested in Bitcoin. Two is that most of the altcoins are traded against Bitcoin. And the third is the huge amount of capital Bitcoin attracts due to its large market cap.
3. Rising Use Case for Payments
The recent Bitcoin surge has been largely attributed to billionaire Elon Musk confirming Tesla’s plans to resume Bitcoin payments eventually. The CEO of the EV company said Tesla would likely start accepting Bitcoin again after it conducts due diligence on how much renewable 9energy is used to mine the asset.
Musk made these comments at the B-Word conference held last week, according to Reuters. This news sent Bitcoin surging 8%. Musk has been a major supporter of cryptocurrencies before turning critical of Bitcoin when Tesla stopped accepting BTC due to high energy concerns.
During the conference, the CEO also revealed that apart from Tesla, his privately owned aerospace and satellite communications company, SpaceX has Bitcoin on its balance sheet. He also revealed that he owns Bitcoin and a few other cryptocurrencies.
Not to be left behind, internet behemoth and e-commerce giant Amazon is prepping for crypto support on its platform if details of a recent job vacancy are to be believed.
Per the post, Amazon seeks a digital currency and blockchain product expert to join its payments acceptance and experienced team.
This led to rumors swirling around that Amazon could start accepting Bitcoin payments. This news sent Bitcoin surging in a bullish comeback, nearing the $40,000 mark. Investors jumped off their seats to buy Bitcoin en masse.
However, Amazon refuted the reports a day after. The retail giant said it had no plans to accept Bitcoin payments in 2021, per reports. Although the company said it was interested in the cryptocurrency space, the crypto payment plans were not true.
This interest by Amazon highlights the possibility of these plans coming to fruition soon.
4. Continued Interest from Heavy Hitters
Another factor influencing the surge in Bitcoin, which should also serve as a reason why you should buy Bitcoin, is the current plans to adopt the asset. Bitcoin seems to have grabbed the attention of institutional investors even more recently.
We have entered an era where individual investors are as powerful and sophisticated as institutions. JP Morgan reports that retail investors purchased 187,00 #Bitcoin worth $10.4B in the past 3 months, while institutions purchased 173,000 $BTC worth $9.6B over the same period. pic.twitter.com/AUE5QSQXon
— Cameron Winklevoss (@cameron) March 17, 2021
Last week, CEO of Twitter Inc, Jack Dorsey, disclosed in a post-earnings call that Bitcoin would be a big part of the social media company’s future, as reported by Business Insider.
Dorsey said he sees a potential to integrate the cryptocurrency with Twitter products and services and believes Bitcoin is the best contender to become the native currency of the Internet. This came as no surprise because Dorsey is also the founder of payments company Square Inc which has invested in the asset in the past.
5. El Salvador Making Bitcoin Legal Tender
Still skeptical about why you should buy Bitcoin now, consider El Salvador’s recent move. The Latin American nation recently adopted Bitcoin as legal tender.
now that El Salvador has adopted Bitcoin as it’s currency, the reviews from the people of the country are coming in and folks, they love not having to deal with banks! pic.twitter.com/JEbDCk6Iz2
— Matt Binder (@MattBinder) June 13, 2021
President Nayib Bukele said he embraced Bitcoin to promote financial inclusion, investment, and economic development. This move by the Central American country is bullish for crypto in the region. Other Latin American countries are gradually warming up to crypto.
For Latin Americans battling hyperinflation and unpredictable national currencies, cryptos provide a haven for safeguarding their wealth. Still hesitant to buy Bitcoin? With institutions continuously adding BTC to their treasuries and the rising interest from LatAM, Bitcoin is poised to be the currency of the future.
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