The Rise of Cryptocurrency: Bitcoin ETF Leads the Charge

Bitcoin

Bitcoin is arguably the 1^st cryptocurrency asset to be created using blockchain technology, it’s also the cryptocurrency with the highest Market Cap currently on the cryptocurrency market. It can also be called the pace setters coin, as its sudden but stable rise from obscurity to utility has earned the bleak and uncertain-looking digital assets market a legitimate and phenomenal adoption from organizations and individuals all around the globe.

We would therefore be looking at some of the mind-blowing highlights of this cryptocurrency asset that has paved the way for the massive growth and development of the digital assets market and blockchain technology.

Fast Growth Rate

(BTC) which is the Short form for Bitcoin was created in the year 2009, by an anonymous individual or group of individuals going by the name Satoshi Nakamoto. Its creation was motivated by the need for a decentralized, secure, and transparent way to transfer value online, without the need for intermediaries like banks or credit card companies.

It became available for transactions such as buying, selling, and exchanging in 2010. Bitcoin then hit the $1 mark in the year 2011, at this time, other cryptocurrencies such as Lite coin (LTC) were already creating their blockchain network and coins.

However, this did not limit or restrict the growth rate of BTC as the price soon got to $1000 in 2013. Ever since then, it has been a snowball effect, as the price kept skyrocketing till it got to a whopping $20,000 towards the end of the year 2017.

As is normal in the financial market, the price of an instrument cannot continue going up forever, there must be a pullback period, consolidation, and possibly even a period where liquidity must be taken away from the market as yields before momentum is regained.

This happened to BTC as the price dumped through 2018-2019, but this was just the beginning as towards the end of the year 2020 through 2021, the price of (BTC) hit the roof as it got to a whooping $67,000 also becoming the fastest asset to hit the $ Trillion dollar valuation in the shortest time possible.

This feat alone speaks volumes of the massive potential (BTC) and cryptocurrency assets have in the long term. There are very few organizations and/or assets that belong to the $ trillion dollars category, but every one of those assets and organizations spent a longer period of time to get to that point, with an average of 25 years, Bitcoin did it just in 12 years.

Massive Untapped Potential

The cryptocurrency market is fast growing and evolving as various innovations, new resources, financial investments, and policies are constantly been put in place to further strengthen and solidify its adoption and dominance. The world is delving deeper and deeper into technological advancement and development, as innovations such as the Web3, Metaverse & NFT’s are fast gaining recognition.

All these innovations and inventions still revolve around Blockchain Technology and the digital assets market, with Crypto assets at the forefront of it all. Bitcoin (BTC) currently has a 53% dominance in the cryptocurrency market, making it arguably the most important and dominant cryptocurrency asset in the world right now.

This is also not changing anytime soon, as a great system has been put in place to make this digital asset get more expensive, as time goes on through a program known as the Bitcoin (BTC) halving, though this is another topic for discussion. Let’s take it a step further and examine some of the landmark milestones that will further strengthen the most valuable crypto asset.

Bitcoin ETFs Shares

Before I look into the approval by the SEC for Bitcoin ETFs, let me explain what ETFs mean and how they can be used in the crypto space. ETF stands for Exchange-traded funds, and it is a financial product that is geared towards allowing more investors to gain more exposure and accessibility to established cryptocurrency assets, in this case, Bitcoin.

In simpler terms, not all investors find the cryptocurrency space or industry alluring, safe and easy to navigate, this is due to several factors such as serious security challenges, regulatory concerns and complex technological applications, but one thing they find attractive is the investment potential of these cryptocurrency assets especially that of Bitcoin. Now this is where the ETFs come in, as they help resolve all the underlying issues mentioned above while providing these investors with the opportunity to invest in the cryptocurrency industry.

How do the ETFs solve the problem you might ask, it’s simple, and this is because ETFs are a type of investment fund and exchange-traded product with shares that can be bought or sold on a stock exchange, similar to traditional stocks. These funds are designed to track the performance of a particular asset or group of assets, in this case, Bitcoin.

Bitcoin ETFs provide investors with indirect ownership of Bitcoin, this means you don’t need to go through the challenges of purchasing the Bitcoin assets and also trying to ensure that they are secure as all these have been handled by the ETF issuers. It means when you buy shares in a Bitcoin ETF, you’re essentially buying a stake in the fund’s underlying Bitcoin holdings.

So the hedge funds or investment management companies do all the heavy lifting of buying and owning the real crypto asset (Bitcoin) while also handling every security concern, and then they issue ETF Shares to their investors making it easier for them to indirectly own Bitcoin and other crypto assets. It is also important to note that the price of the ETF Shares is always similar to the price of the real crypto assets, the price of the Bitcoin ETF Shares in this case closely follows the real Bitcoin price.

I am guessing the next question on your mind is how this will increase or improve the value of the cryptocurrency market. Now, it is safe to say that in many developed and 1st tiered countries, the adoption of cryptocurrency has been very limited and in fact restricted, due to major security risks and concerns. You should also know that these countries hold the wealthiest investors and boast the largest capital markets in the world.

Therefore, the introduction of ETF Shares by reputable and multinational organizations like Blackrock, grayscale and a host of others into the cryptocurrency industry will definitely attract massive financial investment from these 1st tiered countries and their investors further driving the value of crypto assets such as Bitcoin and Ethereum to an even higher level. This means we can see the market capitalization value of Bitcoin hitting and even surpassing the $2 trillion mark.

See Also: 5 Easy ways To Earn From the Cryptocurrency Market without Risk

Bitcoin ETF Approval & Bitcoin Halving

The world is currently eagerly anticipating the approval of the Bitcoin ETFs by the Securities and Exchange Commission (SEC), and when this happens, the demand for Bitcoin will be way higher than the supply available, driving BTC prices to an insanely high level. Even at the time of writing, Bitcoin demand is already very high with various big organizations already purchasing as many as they can afford.

The supply of Bitcoin will keep dwindling in the coming years, and this is not only because of the Bitcoin ETF approval but also because of the upcoming Bitcoin halving. The Bitcoin halving will reduce the supply of Bitcoin as well as the mining rewards and it is very likely to coincide with the Bitcoin ETF approval which will definitely increase the demand for Bitcoin. So in essence, the potential of Bitcoin is way higher than it has ever been before. 

See Also: What Is Bitcoin Halving? Here’s The Best Answer In 2023

This is also a very good sign for the general cryptocurrency market, as Bitcoin alone has a 53% dominance on the market, which means, a massive increase in its value will also see a massive increase in the general crypto market value, driving value and exposure to other crypto assets such as XRP, ETH, MATIC, etc.

In conclusion, Bitcoin (BTC) has massive growth potential and I would say arguably the best asset to invest in for the long term, though it might still be volatile as I have said earlier, the general market is always volatile, and there would always be rising and falling of assets price, but to become profitable, you look beyond the volatility and look at the growth rate of the particular asset you are willing to invest your money.

Frequently Asked Questions About Cryptocurrency

Q1: What is cryptocurrency?

A: Cryptocurrency is a digital or virtual currency that uses cryptography to secure its transactions. It operates independently of a central bank and is decentralized, meaning that it’s not controlled by any single entity.

Q2: How does cryptocurrency work?

A: Cryptocurrency works by using a decentralized network of computers to record and verify transactions. This network is called a blockchain, and it ensures that transactions are secure and transparent.

Q: What is Bitcoin?

A: it’s a type of cryptocurrency that was created in 2009 by an anonymous individual or group of individuals going by the name Satoshi Nakamoto. It’s often referred to as the “first cryptocurrency,” and is widely recognized as one of the leading cryptocurrencies in the world.

Q: Is Bitcoin secure?

A: It is considered to be one of the most secure cryptocurrencies in the world. Its decentralized network and cryptographic security measures make it difficult for hackers.

You can buy BTC on any of the platforms listed below:

Gate

Roqqu

BYBIT

BINANCE

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