Bitcoin has gained immense popularity in the world throughout the past few months. For large organizations, buying bitcoin has become a norm and more and more companies are investing in cryptocurrency.
The most popular news came when Tesla announced that they had accumulated bitcoin worth $1.5 million to their assets. The company also announced that their plans for the future include allowing customers to pay for Tesla automobiles using bitcoin. As the news spread, other companies were quick to follow in the same footsteps.
One of the oldest banks in the U.S., BNY Mellon recently announced that they would now be allowing customers to hold and trade cryptocurrency using their accounts. This news was followed by the explanation that the world is experiencing a surge in demand for digital assets, thus leading BNY Mellon to their announcement.
Mastercard also announced that they are working on a system that would allow customers to hold various cryptocurrencies in their accounts as well. However, these payments would be converted into local currency before it enters the Mastercard account.
The Reason Behind Bitcoin Popularity
As large companies started purchasing Bitcoin as part of their assets, many analysts began to wonder why there has been a recent surge in popularity for the cryptocurrency. According to research, here are a few reasons why companies are suddenly buying Bitcoin in large quantities:
1. Belief in Bitcoin
As Tesla announced their purchase of Bitcoin, the price of the currency rose significantly. This led other large organizations to believe that the future for Bitcoin is bright and that they should invest in Bitcoin themselves too. The founder and CEO of Tesla, Elon Musk, recently spoke on Twitter regarding his belief in cryptocurrency as well.
CEO of Square, Jack Dorsey, has also expressed his interest in Bitcoin openly in the past few years. When such large organizations begin accumulating Bitcoin as assets for their companies, others tend to gain confidence in the cryptocurrency as well.
2. Marketing
Even though there are only a few ways that Bitcoin can actually be used, marketing plays a significant role in the currency’s recent surge in popularity. This was obvious when Tesla’s purchase of Bitcoin led to an increase in the value of the currency.
Additionally, Tesla’s announcement of accepting Bitcoin as a form of payment has resulted in positive marketing for the cryptocurrency as well. There is a popular belief that in the future, other companies may begin accepting Bitcoin as a form of payment for cross-border transactions as well.
3. Consumer Demand
Since BNY Mellon has a reputation for being very careful with their investments, their purchase of Bitcoin certainly resulted in a rise in consumer demand. No large organization wants to stay away from an opportunity to profit in the future, which is why Bitcoin has recently become far more popular than the past ten years.
It is also important to note that Bitcoin has progressively grown the infrastructure through which it operates. This may mean that the future of finance could be in the hands of cryptocurrency after all.