Bitcoin has been rising since 2021 and tripled in value since November 2021. And the optimism is justified. The digital currency has increased by 70% since the start of the year, bringing the total worth of the crypto market to $2 trillion.
The hype surrounding decentralized applications and decentralized finance (DeFi), the rise of non-fungible tokens (NFTs), and the massive potential for blockchain-based gaming in the metaverse have all fueled cryptocurrency investor interest.
Since March 2020, the total value of digital currencies has surged more than fourteen-fold to 2.14 trillion dollars. It is similar to the 35-fold gain in overall market value between March 2017 and January 2018, which occurred over the last ten months.
People can be thrilled about blockchain technology‘s future potential. DeFi allows for almost immediate cross-border payments at low costs, and it can democratize the process so that even residents of emerging markets can participate. Blockchains with smart contracts have the potential to alter supply chains.
For example, Bitcoin (BTC 0.17%) gives the impression of a limited token supply, with a maximum of 21 million. With the US money supply growing, investors regard Bitcoin as a safe haven investment that will help them store and increase their wealth — at least better than the ever-diluting dollar.