Bitcoin Boom: What is Causing It?

Bitcoin Boom: What is Causing It?
Oct 21, 2022 4
Bitcoin Boom: What is Causing It?

When COVID-19 erupted in 2020 and spread like wildfire worldwide, it caused untold suffering in increased mortalities and morbidity. However, it also brought the world to realize the importance of cryptocurrency in the economy. Many governments imposed lockdowns and restricted movement. At the same time, it dawned on governments, businesses, and individuals that cryptocurrencies like Bitcoin are a welcome relief. A cryptocurrency wallet is an excellent way to safeguard your funds. Anyone can invest in cryptocurrencies thanks to the best trading site,

Bitcoin has become so popular and experienced a boom in adoption and use. Many businesses embraced Bitcoin as a payment alternative, and many consumers followed suit. The effect was a significant Bitcoin boom that led to the leading cryptocurrency becoming a household name.

The value of Bitcoin also shot up significantly, reaching an all-time high of over $68,000 towards the end of November 2021. And while the price has dropped dramatically since then, it is clear that there was a Bitcoin boom like no other. Today, Bitcoin is more valuable than different asset categories and world currencies.What caused this unexpected and dramatic rise of Bitcoin? Here are the most likely causes. 

COVID-19 Pandemic

The COVID-19 pandemic significantly triggered the Bitcoin boom. When the pandemic emerged, governments rushed to impose lockdowns and other restrictions to prevent the spread. Unfortunately, this affected everyday lifestyles where businesses were closed, and people could not go shopping like they used to.

And this led to a surge in e-commerce, and Bitcoin became one of the most favorable payment alternatives. Many e-commerce platforms and businesses introduced Bitcoin payment, which led to a rise in Bitcoin use. Using Bitcoin to pay virtually has inspired more companies and people to embrace Bitcoin.

Moreover, Bitcoin’s value also surged meteorically during the pandemic. For example, while Bitcoin’s price was about $7,000 in January 2020, the price surged to about $17,000 by November of the same year. One factor that led to this significant surge in Bitcoin’s price is increased investment in Bitcoin, especially from those who lost their jobs and realized that Bitcoin provides an alternative way of making money.

Increased Institutional Investment

Governments printed and released more money into the economy as a way of helping people and businesses to cope with business disruptions and other restrictions. And this led to increased inflation, with many local currencies losing value. Bitcoin and other cryptocurrencies became a haven as people could use them to hedge against inflation.

Many institutional investors, including publicly traded companies, converted their cash into Bitcoin. And this boosted confidence in Bitcoin as a credible store of value and investment asset. Institutional investment has since increased, inspiring confidence in Bitcoin, hence the recent boost.

Government Recognition

While many governments were initially reluctant to accept Bitcoin, its growing popularity has led to a change of perspective. It increasingly became clear that ignoring or even trying to fight Bitcoin was futile. Hence, major economies like Japan became leaders in accepting cryptocurrencies like Bitcoin. 

A leading global economy such as Japan accepting Bitcoin sent strong signals to other governments and non-governmental entities. They, too, stopped ignoring Bitcoin and embraced it more. The outcome has been the recent surge with governments of El Salvador and the Central African Republic adopting Bitcoin as legal tender.

Final Thought

Various interrelated factors caused the recent Bitcoin boom. The COVID-19 pandemic must have played a significant role, although it triggered other factors to come into play.

The opinions and assessments expressed in the text are the views of the author of the article and may not represent the position of Cryptogeek. Do not forget that investing in cryptocurrencies and trading on the exchange is associated with risk. Before making decisions, be sure to do your own research on the market and the products you are interested in.

ausin mike
10 February, 11:14 PM
How I got my lost funds recovered in binary options investment, through the help of Bruce David I have been in a deep shit all this while I almost lost all I have been investing from day one, I tried all I could to remain unbeatable I never gave up, sometime ago I was referred by a friend to one Mr David for assistance with his master class intelligence and strategy I'm able to make $10,000 weekly and also recovered all my lost funds. I'm so happy. If you need his help you can contact him through his email or Visit Texaco Recovery

isha Lewis
18 August 2023

Do not use this company. They have zero knowledge of trading, after being in a hedge for 5 months in which they continued to buy and sell low yesterday they closed out all the trades losing hundreds of thousands of pounds without giving anyone an option to trade it out themselves. but I was lucky to be saved with the help of drew wake, Helped me recover my lost funds. get in touch with Drew wake
drewwake . jtbtech at 9mail . c0m 
+86 18 97 03 77 491

Eric Robert
20 July 2023
Do not trade with them. They will all go to hell I lost a lot of funds to this fake lexatrade after their fake promises. I suddenly could no longer find them on Skype or getting their mail. But am only happy today because Mr Jeff Silbert who I have heard have helped a lot. With his guidance I was able to get my funds back. God bless you Jeff.
WhatsApp him on +84 94 767 1524.
Or Email Jeffsilbert 39 @ gmail. Com

17 June 2023
( MorrisGray830 At gmail Dot Com, is the man for the job ) This man is dedicated to his work and you can trust him more than yourself. I contacted him a year and a half Ago and he didn’t succeed. when i got ripped of $491,000 worth of bitcoins by scammers, I tried several recovery programs with no success too. I kept on. And now after so much time Mr Morris Gray contacted me with a success, and the reward he took was small because obviously he is doing this because he wants to help idiots like me who fell for crypto scam, and love his job. Of course he could have taken all the coins and not tell me , I was not syncing this wallet for a year, but he didn’t. He is the MAN guys , He is! If you have been a victim of crypto scam before you can trust Morris Gray 10000000%. I thought there were no such good genuine guys anymore on earth, but Mr Morris Gray brought my trust to humanity again. GOD bless you sir…you can reach him via ( MORRIS GRAY 830 at Gmaill dot com ) or Whatsapp +1 (607)698-0239........