TOP 5 Reasons For Bitcoin Growth Potential
You open CoinMarketCap and see this huge dump. You begin to worry and ask yourself: what’s next? Whether bitcoin will reach $3 thousand (that is quite possible) or will it grow to $20,000? Well, for real investors, it is much more important what will be happening in a year and two, not tomorrow. Yes, traders and speculators are worried about bitcoin’s course in the short term. But if you believe in blockchain and understand that this is the technology of the future, then you also believe in bitcoin growth. Today, Trudex will provide you with five reasons to believe that bitcoin holds the potential for high growth
Reason #1. Bitcoin’s Limited Emission
Like ordinary gold, reserves of which are limited, bitcoin will grow. But at the same time, this cryptocurrency has certain dangers. The largest mining pools and manufacturers of mining equipment control the bitcoin mining. Also, Satoshi Nakamato’s wallet has almost 1 million BTC. He can sell these bitcoins at any time provoking a global market dump. But even in this case, the market will recover in the near future. So, despite all the risks, Bitcoin continues to be digital gold.
So why will bitcoin rise? Let’s compare bitcoin with real gold. The graph below shows that gold has been constantly growing in value throughout history because of limited reserves. Similar to bitcoin’s growth over the years.
Reason #2. Crosschain and Bitcoin Growth
Bitcoin’s historical growth shows the reliability of technology, but unfortunately, not its complete perfection. People cannot use smart contracts in the BTC network because of the simplicity of the bitcoin code and scalability problems. This does not allow IT developers to create smart contracts, apps, and so on. Therefore, we see numerous forks of bitcoin, and the code is constantly improving.
At the same time, there are crosschain solutions (for example, the Rootstock technology) that allow us to use the security of the bitcoin network and connects BTC with other cryptocurrencies (for example, with Ethereum). Such crosschain technologies simplify the use of BTC as a means of payment and promote its popularization, and accordingly, growth.
Reason #3. Further Bitcoin HYIP Investment
Even today, when the market cap fell three times it’s size compared to January 2018, its capitalization is still three times higher than in June 2017. This could mean that new people who want big and easy money, more speculators and traders, will come to the crypto market. How will all these people enter the market? Of course, they will use bitcoin. Because there are very few exchanges where you can enter with the help of fiat money. And moreover, virtually all cryptocoins (there are already almost 1600) are traded in a currency pair with BTC.
Reason #4. More and More Users
Yes, the crypto market and blockchain technology will attract more and more people who are interested in new technologies that can solve common but significant problems. Also, the market will attract more institutional investors who want to invest in technology projects. As a consequence, the world will see more and more ways to use cryptocurrency. The marketplace will become more convenient and competitive.
Reason #5. Mining
On the one hand, mining is a danger. But on the other hand, it is opportunities. More and more large companies invest huge amounts of money in mining. They start data centers and redesign their activities in order to increase profitability. And basically, they all mine Bitcoin. The advantage of this work is that traditional companies have the opportunity to conduct both ICO and IPO. Hence, they are able to attract traditional money and invest them in the development of blockchain. The largest producer of ASIC miners, Bitmain, controls 80% of the entire mining market and hold billions of dollars in BTC. At any time, this company can invest this money in the further popularization of bitcoins in order to obtain even greater profits for themselves and for bitcoin holders.
What is our Bitcoin growth expectation? Of course, now the cryptomarket is a flooded with manipulation, and is not a true market of real demand and supply. And it will be as long as there are users who allow themselves to be manipulated, who are afraid of negative news and red charts. Until then, it is difficult to do a bitcoin future price prediction. The more sedate the people in this market will be, the less will be the market supply. In conditions of limited demand, the market will react to this by bitcoin growth.