what do you think is the main reason for the emergence of bitcoin?

[Kristine John]

Everyone these days is prone to the digitization and are adopting virtual currency, especially during the pandemic of COVID-19.

But the question arises that why people think it is a good investment?

What is the main reason of bitcoin market, pushing cryptocurrency market values up to 1$ trillion?

It would be my pleasure to have any opinions on the concerned topic.

[Poker Player]

Bitcoin was created as an alternative to central banks. The idea of Satoshi was to create a P2P electronic cash system but nowadays, although it can be used for P2P payments is seems it is succeeding as an alternative to gold. Or better said as the best of store of value in the world. Note that although this changes the initial idea a little, it doesn't deviate much from it either. Bitcoin succeeds as central banks print more and more money. It's a decentralized, autonomous system based on mathematical security.

As for the other factors behind the recent rise in price, it would be above all the brutal increase in demand by institutional investors, also, the start of the FOMO for small investors and the reduction in supply (halving and withdrawals from exchanges to cold wallets)

[Kristine John]

Bitcoin was created as an alternative to central banks. The idea of Satoshi was to create a P2P electronic cash system but nowadays, although it can be used for P2P payments is seems it is succeeding as an alternative to gold. Or better said as the best of store of value in the world. Note that although this changes the initial idea a little, it doesn't deviate much from it either. Bitcoin succeeds as central banks print more and more money. It's a decentralized, autonomous system based on mathematical security.

As for the other factors behind the recent rise in price, it would be above all the brutal increase in demand by institutional investors, also, the start of the FOMO for small investors and the reduction in supply (halving and withdrawals from exchanges to cold wallets)

This added a lot more information to my knowledge. Thank you.

[Fesatmas]

In my opinion, Satoshi's background in creating Bitcoin was due to his dissatisfaction with the fiat financial system, which became a financial limitation that could only be used non-virtual at that time. then based on branching management with third parties is a strong reason that fiat money is very vulnerable to dangerous inflation. As an alternative to solve the various problems facing fiat, Satoshi came up with a brilliant idea. Bitcoin is present as a digital-based medium of exchange which is in full control of the owner without any party interfering in freedom of transactions.

[avikz]

Everyone these days is prone to the digitization and are adopting virtual currency, especially during the pandemic of COVID-19.

But the question arises that why people think it is a good investment?

What is the main reason of bitcoin market, pushing cryptocurrency market values up to 1$ trillion?

It would be my pleasure to have any opinions on the concerned topic.

There are many reasons behind the emergence of bitcoin in recent time. However, I have added the reasons below which I think played the major role,

1. Additional liquidity from corporate spending - As more and more companies are becoming increasingly fond of bitcoin, they are pouring millions of dollars into the market and creating additional liquidity for long term.

2. Demand is high - a normal demand supply curve is playing here as well because the demand of bitcoin is usually high at this time while the supply remains constant.

3. Positivity around bitcoin - that is triggered by corporate spending on bitcoin. A lot of people had actually became interested about bitcoin after they saw the corporate spending on it. Also exchange services are pushing for it as well to get a bigger market share of the business creating a positive vibe around bitcoin and cryptocurrency in general.

There might be other micro factors available which had influenced bitcoin to reach the current level but I think I have covered the major points!

[BrewMaster]

bitcoin's adoption is always increasing because it is useful and is providing a necessary utility to all the people around the world. this rise of bitcoin didn't start recently to cause any confusion, it started 11 years ago and hasn't stopped because the adoption is still ongoing.

the only reason why the rise speeds up at times is because the bitcoin market keeps having 2 big and long stages: a massive bull run followed by a prolonged bear run.
each time the bear trend ends the market starts rising back up again slowly at first then things become increasingly fast for nearly a year and we are currently at the start of that year.

[dothebeats]

Perhaps because people are lising confidence and trust to fiat currencies? The recent performance of fiat in forex is kinda underwhelming, which goes to show the public’s general sentiment towards it. They need something that can get them easy and large profits, and 2020 showed them that bitcoin can give them just that. It started with huge companies dropping millions of $ in bitcoin in Q2 2020 and most people followed suit, hoping to not miss the train. You may call it FOMO on the way up, but if you compare fiat’s performance with bitcoin, you can see that people are starting to lose confidence on fiat and looking for some place to hedge their money while fiat is unstable due to numerous reasons brought forth by the pandemic.

[lifeforcepools]

There are many prerequisites for this. But it had to happen. It's just time for it.

[Welsh]

Honestly, I'd really like to say; that people are waking up to how the world operates, and are completely disgusted by it. So, they would like to truly own what they own, and become responsible for it themselves.

In reality, its making money. The majority of people coming into Bitcoin, are here to make money, and probably to withdraw any profit back into their bank accounts. This is still good for adoption, because it will catch certain people during this process, but I'd expect the vast majority don't actually care much about Bitcoin as a technology, and the benefits of using it over traditional methods.

[bosede1]

From my perspective, I think the emergence of bitcoin is to make the world of payment digitalized instead of going with currency all over

[Coinsfera]

The main purpose of Bitcoin is to change the payment system we are used to. With Bitcoin technology peer to peer (P2P) system; that is, it works directly between peers without any intermediaries.

Increasing the money supply in circulation increases in direct proportion to inflation. However, this system does not apply to Bitcoin. As of its technical design, a maximum of 21 million Bitcoins can be produced. Therefore, the inflation risk of Bitcoin is very low.