Just why is bitcoin becoming more popular?

Just why is bitcoin becoming more popular?

Bitcoin continues to be on the rise as more belief in crypto currencies is shown. Support from top businesses is seeing an increase in the value of the digital currency.

Monday 8 March was a big day indeed for bitcoin. Early US trading saw its price climbing by 4.6 per cent. That took it over the $54,000 mark as it reached its highest level in the past fortnight.

Why is this happening though? The currency has been known for being erratic with its value rising one minute and falling the next. What a new currency needs is plenty of support from key figures. The more faith shown in it, then the higher the value of bitcoin could become.

Tesla purchases $1.5 billion worth of bitcoin

That is just what has been happening of late. Last month Tesla made the announcement that they had purchased $1.5 billion worth of bitcoin. They said that the purchase had been made as it gave them “more flexibility to further diversify and maximise returns on our cash.”

The decision was an important one and even more so was the news that they would start accepting bitcoin as a payment method. Last October, PayPal, who have over 350 million users around the world, made a similar announcement. They introduced cryptocurrency buying and selling on its platform and that included bitcoin.

This growing acceptance of bitcoin and other cryptocurrencies is an important step. Online businesses such as casinos are also using them as one of their payment methods. The fact they do so indicates how much they trust them and that’s a key message to put across. Financial transactions are open to fraudulent behaviour online, having a payment method that is safe is what any site requires.

Elon Musk Tweets

Having a key figure being positive about your product is always important. Elon Musk has been making plenty of positive tweets about bitcoin. That is one main reason why the value is now rising.

When he added #bitcoin to his Twitter bio it led to a near 20% rise in the value of bitcoin. On his Clubhouse audio chat app, he explained just why he is a fan of the currency. “I think bitcoin is really on the verge of getting broad acceptance by conventional finance people,” he said.

More support has come from companies such as the Stone Ridge Holding Group and Morgan Stanley. Edward Moya, senior manager analyst at Ocunda. He believes that there is strong institutional interest in bitcoin, so it’s no surprise they are feeling bullish.

Kjell Inge Rokke has become a billionaire in the oil industry. His view is that although the currency could yet collapse in value, the opposite may also happen. “It can also become the core of a new monetary architecture,” he says. Only time will tell of course but the future is looking good for Bitcoin.