Just as the world's most popular cryptocurrency bitcoin price broke the old record and set a new record, the total market value of all cryptocurrencies has crossed one trillion dollars for the first time. The price of bitcoin crossed $56000 dollars for the first time on Friday night. In March last year, its price came to $ 3850 but since then it has increased by almost 1500 percent.
Why the price of Bitcoin is increasing
Due to the deteriorating economy of many countries, heavy spending poses the risk of rising inflation, which is why investors are turning to bitcoin. Bitcoin is gaining popularity among mainstream investors. Their trust towards this cryptocurrency continues to grow. Sergei Nazarov, founder of chainlink, a firm that gives investors data about blockchain, said cryptocurrencies are gaining momentum due to a lack of trust in traditional institutions. Nazarov said that people outside the industry may consider it an achievement that the value of the cryptocurrency market has reached one trillion dollars. But for us it is still early.
Heavy on other Assets
According to Antony Trenchev, co-founder and managing partner of crypto lander Nexo, bitcoin has outperformed expectations and has given a befitting reply to those raising doubts. It has outpaced all other assets. The market cap of all cryptocurrencies surged 10 percent to $ 1.042 trillion on Thursday, according to CoinMarketCap. Bitcoin accounts for 61% of the total market cap of cryptocurrencies. Ethereum then holds the largest stake at 15 per cent. Ethereum also reached $ 2050 only after this, its highest level since January 2018.
Proved Dangerous for Gold
Bitcoin has emerged as a threat to gold. Gold reached its peak in August, but since then it has fallen by about 10 percent. Bitcoin is believed to be the reason for this decline. Investment bank JPMorgan said on Tuesday that if the authenticity of bitcoin as a safe investment is proved, its value could go up to $ 146000.
