has more than doubled in value this year, though few can clearly point to why. One of the reasons may be that the conversation surrounding the market-leading cryptocurrency has matured, according to a metric by data analysis firm Indexica. In essence, the first cryptocurrency has “grown-up.”
Bitcoin’s explosive rise this year has been met with disbelief. After a year-long bear market, the flagship cryptocurrency has emerged from the ashes stronger than ever — and many analysts are scrambling to understanding why.
The general answer for the cryptocurrency’s rise is that BTC has simply matured as an asset
Bitcoin started as a cryptocurrency plagued with accusations of it being related to ‘organized crime.’ However, in the past few years, this impression has changed drastically.
Indexica has outlined three major factors which might explain the famous cryptocurrency’s current upward momentum.
- Conversations surrounding Bitcoin have become more complex. Key industry players have changed their opinions. According to Indexica, more academics and financial experts have been talking about BTC than ever before.
- Fear over it being a ‘scam’ have waned. Bitcoin clearly did not die after its price collapse in 2017 — which indicated to many its longevity. The fact that only one percent of Bitcoin’s transactions can be related to criminality according to Chainalysis indicates that its association with crime has all but disappeared. That’s good news for long-term growth.
- Future-oriented discussions on Bitcoin are becoming more common. Interestingly, Indexica has found that — based on its ‘futurity metric’ — the conversation surrounding Bitcoin has shifted. Rather than it being talked about in the past tense, April was a notable point when discussions on BTC began to be overwhelmingly future-oriented. The excitement over the future indicates strong momentum moving forward, evidenced by Indexica’s collected data.
These positive indicators tell us that Bitcoin has effectively matured as an asset. Trust is building. That’s likely one of the major reasons why it has surged nearly 60 percent from around $5,000 on April 15 to its current price of $7200 at the time of writing.
Do you think Bitcoin is now seen as a legitimate financial vehicle? Let us know your thoughts in the comments below.
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