Investors’ attention towards cryptocurrency is increasing daily. Bitcoin price has risen more than 300% since last October, and the highest price it reached was 58k dollars. The cryptocurrency market is being activated at an amazing rate as cryptocurrency traders are increasing every day and institutional investors are steadily buying Bitcoin and major altcoins (cryptocurrency other than Bitcoin). Besides, big companies like Tesla are starting to buy Bitcoin, and it is beginning to be used as a payment method as companies like Paypal and Visa are developing on it. There are many reasons for investors to choose Bitcoin, even though it is still a risky investment product.

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Many cryptocurrency pessimists say that buying Bitcoin means buying something with no actual value. Indeed, Bitcoin does not exist in the real world, and it is an asset in a digital form. Therefore, this is solely affected by the market’s property of supply and demand. Due to this, the volatility of cryptocurrency is very high compared to other forms of assets, which naturally means the risk of investing in it is very high. Despite the risk, many investors buy cryptocurrency, which means that they think the demand for cryptocurrency will increase while the supply compared to the demand will decrease. This is not so illogical because the issuance of Bitcoin is limited, and it is estimated that the issuance of Bitcoin will end at 2100. Therefore, the scarcity of Bitcoin is increasing every day as more and more investors continue to accumulate it. Also, some investors view that the value of currencies like dollars will drop and use Bitcoin as storage means. In long term, the value of one dollar has dropped, and countries are continuously printing out money. In contrast to this, Bitcoin price is showing low relations to values of currencies and other assets. For these reasons, optimists consider that the cryptocurrency market has immense potential.

The cryptocurrency market, which started in 2010, has shown a huge development. Nobody can estimate the exact potential of this market, and the attention of people, companies, and countries towards it is increasing. Bitcoin has reached 8th in the market cap ranking of all global assets, and cryptocurrency is starting to occupy a significant part of the global economy. Moreover, countries are developing CBDCs (Central Bank Digital Currency) to jump into the market. The development rate of the cryptocurrency market shows that now it is not something to be neglected.

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