Explanation as to How Is Bitcoin Gaining Value in a Post-Pandemic Economy?
Despite the post-pandemic economy, Bitcoin and other digital currencies have increased in value by leaps and bounds. During 2020 alone, Bitcoin reached record-breaking high values that exceeded financial experts’ predictions and financial forecasts. The COVID-19 pandemic forced several markets to reexamine existing financial systems that couldn’t adjust to the stress of the swift economic changes. Since June of 2020, Bitcoin has skyrocketed in popularity and value. In the final week of the year, Bitcoin tokens were traded at mind-blowing highs that have increased more than twenty-four percent. Traders can barely contain their excitement about what 2021 will have in store for Bitcoin and other digital currencies.
Alternative Financial System During Troubling Times
The unprecedented global market has brought investors and financial moguls to seek alternative monetary systems. Within the blockchain ledger, Bitcoin becomes an infinite resource that isn’t controlled by centralized institutions or third-parties. Bitcoin left traders in awe by exceeding the previous value high of twenty thousand during its upward rise. If Bitcoin’s trajectory doesn’t alter, its value may exceed thirty thousand by the end of the first week in January 2021.
While Bitcoin is undeniably the most widely used cryptocurrency, Litecoin and Ethereum have also experienced significant market value gains. As other cryptocurrencies near record highs, the crypto market grows more robust and more sustainable. The growing demand adds flame to the wildly spreading value and popularity of blockchain ledgers and digital currencies. As digital currencies head into 2021, most cryptocurrencies have increased in value except for Ripple’s XRP.
XRP Faltering Despite Robust Cryptocurrency Market
Bitcoin and other digital currencies are utilizing the chance to prove the effectiveness of a decentralized financial platform. As Bitcoin rises to the top of its sector, XRP slowly drops in value. Despite the bullish crypto market, XRP tokens rapidly lost value when the Securities and Exchange Commission brought lawsuits against XRP’s developer, Ripple Labs. The claims of illegal and unethical activities against Ripple Labs and its founding operators have caused XRP’s value to crash. In November 2020, XRP rode the success wave along with other popular cryptocurrencies. However, the lawsuit brought forth by SEC has greatly diminished XRP’s value.
Several popular crypto market trading platforms have banned or delisted XRP trading. Since XRP token trading has halted, the value of Bitcoin has increased rapidly. New investors flooding the crypto market have added to the cryptocurrency’s increased value and more platforms accepting blockchain ledgers.
Following the Advice of Crypto Market Experts
Crypto market experts believe XRP tokens will continue to exist regardless of what happens to Ripple Labs. Blockchain ledgers and digital currencies have presented legal challenges for centralized institutions and traditional financial platforms. Nevertheless, crypto traders have jumped on an opportunity to profit from the expanding crypto market. As 2021 brings new and exciting pathways to explore, Bitcoin is expected to gain more value.
Financial platforms controlled by central banking institutions continue to attack the crypto market, which has sparked legal action like the Securities and Exchange Commission’s lawsuit against Ripple Labs. The United States’ Financial Crimes Enforcement Network has proposed regulations requiring crypto platforms to collect users’ personal information. The suggested crypto wallet rule has the potential to transform the current blockchain ledger and crypto trading market.