Reasons Why Bitcoin Could Double Your Money In 2021
all you need to know about Bitcoin price
The price of no other assets in the world has increased as fast as that of Bitcoin (BTC). From USD10,764 in September 2020 to 48,840 on February 17, 2021 – its value quadrupled in just 5 months. If you are a crypto investor or one who is planning to do so, the statistical presentation of the value of Bitcoin over the period October 2013-February 17, 2021 might interest you.
Here are grounds that bitcoin could double your money in 2021.
#1. Growing adoption of bitcoin
From crypto exchanges to investors – bitcoin is the favorite of everyone. Almost every exchange from big to small, from popular to the least-known ones are allowing traders to buy BTC in India. Spot to derivatives – there is every choice as per the investment instrument is concerned. Likewise, BTC has attracted retail as well as institutional investors alike. The number of blockchain wallet users has grown exponentially from 46 million (Feb 2020) to 67 million (Feb 2021) over the past one year. A growing user base means an increase in demand, and when the demand increases, the price does. So, with this pace of growing users, there is a high chance of bitcoin witnessing new heights in 2021.
#2. Attention of the biggest financial institutions
Is Bitcoin a good investment for 2021? Approval of big giants proves it right. From Tesla to MicroStrategy to Square, to Insurance giant MassMutual, and beyond – all are making headlines with their BTC investment.
With retail and institutional investors both taking refuge in BTC, it has become one of the top-performing cryptocurrencies, followed by Cardano, Ethereum, Tezos, and Binance Coin. However, bitcoin is way ahead then all of them put together. The impact of big investors to the like of Elon Musk on BTC value isn’t hidden from anyone.
Mere disclosure of the USD1.5-billion-dollar investment by Elon Musk on February 8 served as the catalyst and the BTC market soared above the USD48k (approx.) mark from what was USD37K(approx.) a day before.
#3. Healthy Stock to Flow (S2F) model
Unlike most of the fiat currencies that have undergone or undergo the worst phases of inflation and devaluation, Bitcoin hasn’t or will hardly pass through. One of the reasons is its high S2F ratio (stock divided by flow quotient). The S2F model is not only applicable to bitcoin but also to gold, silver, and other assets.
At 56, Bitcoin’s S2F ratio matched that of gold in May 2020, when bitcoin’s circulation hit its half mark. It’s likely to move beyond the double mark as per PlanB, a Dutch institutional investor. He created the Bitcoin Stock-to-Flow (S2F) model using scarcity to quantify bitcoin value. He projected the BTC price to exceed $288k, assuming the model continues to hold.
Stock to flow is a financial indicator that measures the scarcity or abundance of an asset. In S2F, S or stock is the total circulation or supply of bitcoins and F or flow is the number of new assets available or issued annually. The arduous mining process deters the creation of new bitcoin. The scarcity leads to value appreciation. The Unforgeability of its blockchain prevents it from being counterfeited. Limited supply and high-grade security make bitcoin to retain its purchasing power over a long period. It also makes investors trust in the asset and invest more.
How to Buy Bitcoin in India ?
Buy and sell bitcoins across spot or derivatives trading instruments on PCEX Member, a leading crypto trading exchange. It’s backed by high liquidity and security. The exchange attracts all types of investors from big to small, beginners to veterans, and from individual to institutional ones. It’s an easy-to-use interface and low transaction fees make trading super easy.