A cryptocurrency is a digital form of currency that is booming in popularity right now because of its increased security, lack of fees, and no governing authority. While it originally started out as a niche market, the vast majority of the people in the world have now heard of at least one form of cryptocurrency. This awareness has been aided by the booming prices of most forms of cryptocurrency in recent months.
Rising US Inflation
The increased spending by the US government has caused inflation to grow at a much higher rate than normal.
This inflation essentially lowers the purchasing power of our dollar. This has caused many people to switch their assets into a more stable currency. One of the most stable options right now is cryptocurrency. With so many people flocking to cryptocurrency, the prices are steadily rising over time.
The days of spending hours on the internet trying to figure out how to trade cryptocurrency are officially over. You can easily find information on trading from a number of reputable sources like Capital.com. This is letting everyday people invest their money in cryptocurrency for the first time.
Opening up to a more mainstream audience naturally leads to increased demand. Everyone with a basic understanding of economics knows that this directly correlates with an increase in price.
In addition to making trading easy, it is also now much easier to spend your cryptocurrency. PayPal, Venmo, CashApp, and other online retailers are now allowing their users to use cryptocurrency to fund their online transactions.
This is essentially eliminating the need to have a bank account to buy items online or send money to your friends or family. The ability to use cryptocurrency on a daily basis has drastically increased its demand among previously skeptical users.
Harder to Produce
Due to its rise in popularity, there are now more people mining for Bitcoin and other cryptocurrencies than ever before. This increase in mining is only making it harder to find Bitcoin.
Since the miners are having to use more resources to find one block of Bitcoin, they are valuing this block at a higher rate than ever before. These increased production costs have directly correlated with a rise in the overall price of the cryptocurrency.
High Consumer Confidence
It is completely natural for people to be susceptible to new technologies. It took a lot of time to get people to trust a currency that was not tangible, but it is finally starting to happen. The widespread consumer fears surrounding cryptocurrency are now gone, which is making people far more willing to invest. With so many more people willing to try out cryptocurrency, it only makes sense that its value continues to rise.
Cryptocurrency has seen a massive boom in price over the last year due to a variety of different factors. Since the main factors for this rise are unlikely to go away anytime soon, it seems like cryptocurrency is only going to continue to go up in the near future.