Bitcoin has been pushed throughout its almost 12 years of existence by its core believers while its underlying technology and fundamentals, including its inherent scarcity over time, helps pull it onto new heights.
In the past decade, the narrative about Bitcoin has changed in all quarters, with even governments around the world recognizing its potency to upturn existing monetary systems through decentralization, speed, and cheaper transaction costs respectively. Many have strived to ban the coin over the years but the strength of the global community backing the coin has continued to influence its growth.
This article highlights three core fundamentals that help in driving Bitcoin’s growth in our world today.
Influence of Institutional Investors
Remarkably, institutional investors around the world have been putting in their excess cash reserves in purchasing Bitcoin to serve as part of their treasury reserve asset as an alternative to cash. The flow of cash from these classes of investors helps limit the volatility of the coin and accounts for why the coin has not plunged back to the dip amidst imminent sell-offs as prevalent throughout its history. These investors are also HODLing for the long term, fueling scarcity that also boosts the coin’s price.
Over the years, Bitcoin has gone from an obscure digital asset to that which the mainstream media is singing its praises. The influence of such media houses as CNN, BBC, Bloomberg, and CNBC amongst others is further helping to publicize the uniqueness of the digital currency.
The uniqueness of Bitcoin’s Codes
Whoever Satoshi Nakamoto is, he sure did a good job as the Bitcoin protocol has so many unique features including a scheduled halving event, and a highly encrypted framework that reduces its supply in the long-term, and provides the security that makes all investors have confidence in the protocol.