There are a number of reasons for the recent cryptocurrency boom in blockchain based technology stocks like Bitcoin, Ethereum etc. Cryptocurrencies boom today also represents an exciting new, though relatively untested, approach to the storage and transfer of wealth.
Firstly, Bitcoin came into being in 2009 and ever since its developers and the cryptocurrency community have faced security challenges, implementation and challenges of scalability. Facing all of these challenges Bitcoin and other cryptocurrencies have stabilized themselves and remains to be the most stable and viable alternative to store of value. Over the period Blockchain as a technology has been able to establishes trust across anonymous parties thus enabling integrity of transactions amongst parties unknown to each other.
Secondly, the increasing awareness of Bitcoin has led to a cryptocurrency boom. It is leaving the realm of techie hobbyist and entering in to the mainstream investment alternative. Not only as a viable currency, but what it means to ‘store value’ outside of normal conventional methods, e.g., cash, banking, investments, stocks, gold etc.
Bitcoin is the market leader in cryptocurrency sector and is driving boom in the sector as a whole. Other cryptocurrencies like Etherium etc. are also being used for storing value as an alternative and are moving in sympathy with the its market leader.
Thirdly, the increasing acceptance of Bitcoin and other cryptos by the big player in business establishments is an indication of faith that the community has in it. The key to success of any medium of exchange is `faith’ the Bitcoin has been able to establish faith of the community. That’s why it is increasing in value.
And last but not the least, the upper cap of Bitcoin’s generation is 21 million which limits its availability. With the demand increasing with a limited supply, the demand and supply economics is working to its advantage in pushing the price further.