Bitcoin lacks only one thing to become a full-fledged alternative to fiat money. - Kakiforex | Forex markets for the smart money. Bitcoin lacks only one thing to become a full-fledged alternative to fiat money. Bitcoin lacks only one thing to become a full-fledged alternative to fiat money.

February 22, 2021

Bitcoin lacks only one thing to become a full-fledged alternative to fiat money.

 Bitcoin continues to rise and is likely to continue to rise until large investors and holders start to get rid of it. Experts around the world continue to understand the reasons for such a strong growth of cryptocurrency and name several reasons that can be considered factors for the growth of bitcoin. First, after bitcoin reached the mark of $ 50,000 per coin, it began to get almost all over the media. Every news agency or periodical considers it its duty to review bitcoin, as it is a banal popular topic in 2021. Everyone in the world began to be interested in bitcoin much more than before, providing an influx of new investors who increased the demand for the cryptocurrency even more. Secondly, at a time of ultra-low interest rates and falling yields of government and commercial securities, bitcoin has become a very attractive tool that can bring returns much higher than stocks or gold. Thus, the process of banal flow of money from the sphere of stock instruments and gold to the cryptocurrency sphere, which offers a high yield, has begun. Investors and traders who set themselves the task of not just saving money, but making money, naturally choose more cryptocurrencies, which it can be done in 2021. Of course, bitcoin remains an ultra-volatile instrument and threatens huge losses to its owners, but so far it is only growing, as the value of its owners' investment portfolios is growing. By and large, everyone in the market understands that the most important thing is not to miss the moment when the "cue ball" will be massively disposed of (as it was in 2017 when bitcoin fell in price from $ 20,000 to $ 3,000). Meanwhile, analysts predict a drop in bitcoin volatility in the coming years. That is, the cryptocurrency will approach its market properties to ordinary assets, securities, and fiat money. And, from the point of view of many experts, this will further fuel interest in it. Now a lot of people are afraid of bitcoin, as they are afraid of its possible strong fall and loss of their funds. But if the volatility of bitcoin decreases, it really will be regarded by many investors as a hedging tool and a calculation tool, which is not without its attractiveness (due to anonymity). Thus, in the coming years, the cryptocurrency may continue to gain popularity. Naturally, this is not a matter of a couple of months. Bitcoin can gain popularity for several years and even decades. But each new round will also mean an increase in its price. At least until it is fully controlled by governments or central banks (which may not happen).