- Bitcoin has seen a surge in institutional demand from various industries and private banking customers
- More mainstream institutions and investors are beginning to embrace blockchain technology
- Now, banks in the United States must deal with laws prohibiting investors from exchanging physical cryptocurrencies
Despite the global pandemic wreaking havoc on all major economies on the planet, the cryptocurrency market has continued to grow. Several crypto companies have sprung up to meet the ever-increasing demand for Bitcoin and other cryptocurrencies during this pandemic.
Rise in demand of cryptocurrencies due to institutional adoptions
Cryptocurrencies, especially Bitcoin, are now regarded as safe-haven assets against market volatility and inflation. People are keeping less cash and staying hedged against market fluctuations because of the current social and economic climate. There has been a recent trend among public corporations to turn their cash treasuries into cryptocurrency. Many governments are attempting to control the industry as several private investors continue to embrace cryptocurrency as a means of exchange.
Mathew McDermott, head of Goldman digital asset, works to relaunch its cryptocurrency trading desk as the company noticed a strong demand for digital assets from various institutions. Following this, Microstrategy, a publicly traded corporation in the United States, converted millions of cash reserves to Bitcoin, believing it to be a more reliable store of value. Since then, several businesses have joined the fray. The confidence that corporate giants have placed in cryptocurrencies has increased its value as a currency and value store. So, Goldman digital is ready to dive into the same.
But why are cryptocurrencies in such high demand?
1. High Liquidity
Investors prefer liquid assets, and cryptocurrencies are among the most profitable on the digital market. As long as you have a secure internet connection, you can easily access it online. As a result, buying and selling the currency is simple and convenient. A large price swing can be recorded in a matter of minutes. Digital assets are becoming more common among investors due to their high liquidity.
2. Simple Trading
In contrast to conventional alternatives, cryptocurrencies are much easier to use and handle. There is no need to recruit consultants, fill out paperwork, or visit financial firms to track your savings. To get a crypto account and wallet, all you have to do is sign up. Then, whenever you want, you can start monitoring your digital assets.
3. Favourable Predictions
Experts advise investing in digital currencies for the long term to reap large returns soon. According to industry forecasts, the crypto market would boom in a few years, and investors would reap massive profits.
Investing in cryptocurrencies will outperform investing in any other financial asset in the coming years for the reasons stated above and more. This is due to the ease with which cryptocurrencies can be treated, as well as the fact that they are one of the world’s fastest-growing asset classes.
Get this news hand-delivered to you on Telegram. Join our Telegram for similar News and Information related to CRYPTOCURRENCY, BITCOIN, BLOCKCHAIN NEWS, and Price prediction.