Factors That Contributed to Bitcoin’s Rise in 2019
Bitcoin is the first-ever peer-to-peer decentralized network that has redefined the definition of cryptocurrencies. Despite being the first in the swathe of cryptocurrencies, Bitcoin has always maintained the integrity of being the largest cryptocurrency, weathering the bear markets successfully. Bitcoin had seen its most stable form in the year 2019, when it opened around $3700, and grew to trade around $4100, showing the growth of 9% in the first quarter of 2019.
Bitcoin saw its surge of improvements in 2019, reaching out to the $6,000 level on most of the crypto exchanges for the first time in history since November 2018. It advanced by 4.7 % to $5,961, which is undoubtedly a majestic improvement. Bitcoin surged by over 50% since last year when it was pushed below $4,000. The factors that contributed to such a massive surge of Bitcoin in 2019 are discussed in detail below.
Improved Bitcoin Development
Bitcoin has developed over the years, given the rise in its visibility, regulatory progress, and growing interest. The momentum of the online searches for Bitcoin skyrocketed in the year 2019 and as a result, many topmost businesses have already started to transition their existing means of transactions with Bitcoin including Bitcoin casino. This development of Bitcoin is creating quite an uproar in the capital markets, which is yet again working in favor of Bitcoin’s success. Bitcoin is also getting increased media coverage with celebrities and powerful public figures promoting the use of Bitcoin.
The CEO of CoinIRA (the company specializing in the digital currency called IRA), Trevor Gerszt, said,
Cryptocurrencies were always going to take a while to gain mainstream acceptance. As the Bitcoin ecosystem began to mature and develop more customer-friendly ways to purchase, trade, and use Bitcoin, it gradually began to build the network effects that would be needed to establish it as a viable cryptocurrency. It just needed to hit that critical mass to really take off, and this year seems to be the year that that happened.
Increased and better Bitcoin mining
Bitcoin mining is referred to as the process of adding transactions to the past public ledger of Bitcoin, commonly named as “blockchain.” The year 2019, saw a clear rise in profits earned from Bitcoin mining that hit the highest on April 15, 2019. The hash rate of the entire Bitcoin network rose to its height with the rise in the profitable Bitcoin mining. This signals that more miners are coming back to the market.
Exposure through national digital currencies
The robust potential of Bitcoin and its stability has led it to become the strongest cryptocurrency in the world. The decentralized nature of Bitcoin (and all other cryptocurrencies as well), has made it the most secure means of transactions. A recent study showed that over 40 countries of the world are looking for developing national digital currencies and Bitcoin fits the criteria the most, among other cryptocurrencies.
How has Lightning Network become more stable to give better results?
Lightning Network, as the name seems, is a “Layer 2” payment protocol system of smart contracts built on the top of the Bitcoin-based blockchain network to allow for direct secure payments between two parties. It has become more stable over the years and could be a game-changer in the evolution of cryptocurrencies. Once the lightning network is deployed across all nodes, it will speed up the processing time of transactions, thereby decreasing the costs on Bitcoin’s blockchain. The lightning network, in fact, addresses the complex problems that inhibit the Bitcoin uses in transactions.
The way that Bitcoin has set new highs in the year 2019, it emerges as the strongest cryptocurrency and, if traded properly, will yield huge profits. Talking about Bitcoin’s strength, the managing partner at Kenetic Capital (a renowned proprietary venture capital trading firm in Hong Kong) Jehan Chu said,
Bitcoin is testing new near-term highs because the overall institutional involvement is becoming stronger and stronger. We’re just seeing institution after institution lining up to the thesis of digital currency, and Bitcoin is the standard-bearer.