Bitcoin hit an all-time high price of over $66,000 last week. On October 21, 2021, the world's largest and oldest cryptocurrency opened trading at $67,139 (roughly Rs. 50.25 lakhs). The coin has notched up record after record since the start of this year, and has constantly been in the headlines. Bitcoin, which is by far the most valued cryptocurrency in the world, has been winning several investors during this time. It still leads the price charts when it comes to market cap value. Despite some strong competitors like Ethereum, Bitcoin continues to be a favourite among investors.
Here are some reasons why investors continue to rally behind Bitcoin:
Top Valued Cryptocurrency: Bitcoin continues to be the top valued cryptocurrency out there. Although Ethereum stands only second to it, the price and market cap value between the two is huge. Bitcoin's price stands at around $59,000 (roughly Rs. 44 lakhs) at the time of writing while Ethereum's is at $4,041.92 (roughly Rs 3.03 lakhs) The price often determines the gain of an investor. Hence, Bitcoin's higher price indicates that investors are pulled towards it more.
Market Cap Value: Often, investors rely on the market cap value to decide on their investments. A better market cap denotes a better presence of the crypto coin in the market. Bitcoin holds a top hand in this with over $1 trillion worth of market cap. This makes Bitcoin a tempting choice for investors.
Celebrity Endorsement Of Digital Currencies: A major reason behind the rising popularity of Bitcoin is the endorsement of digital currency by celebrities. In India, celebrities like Amitabh Bachchan and Salman Khan have already embraced the blockchain technology that underlies many cryptocurrencies. Celebrities have also started taking an active interest in non-fungible tokens (NFTs) carrying their unique digital signatures. All this has led to the rising popularity of cryptocurrency as a whole and Bitcoin in particular.
Scarcity Factor: Bitcoin's rising price also boosts the confidence of investors who see a strong disrupter that can affect the centralised economic structure. There's also the scarcity factor that adds to Bitcoin's traction among investors. There are only over 18 million Bitcoins available today. The total number of Bitcoins to be ever produced is capped at 21 million. This limitation on the number increases Bitcoin's price as popularity increases. This also pulls investors to rally behind Bitcoin.