Bitcoin is about to catch up with December 2017 all-time high as it steps in the direction of $20,000 mark. This makes bitcoin less than $2000 away from its all-time high.

Image from Coin Desk

Some key reasons might be responsible for the steady growth of bitcoin, and that as well might affect its upward trajectory going forward.

Adoption of Cryptocurrency by PayPal

PayPal earlier announced that its users and merchants can now buy, sell, hold and accept bitcoin and other cryptocurrencies as a form of payment.

PayPal has over 350 million active users who will now be able to use cryptocurrencies. PayPal is also the owner of Venmo, which has about 40 million active users, making the accessibility to bitcoin and other cryptocurrencies more significant.

Increased adoption by payment application will give people more easy access to start using cryptocurrencies in their everyday lives, making it more valuable in the future.

Increasing Inflation 

Another reason for the growth is rising. This has pushed more people into more safe-haven assets like real estate, bitcoin etc., More people want to get their money out of their bank accounts where it is depreciating, into more hard and investment-type assets, so that even if the dollar plummets, the value of investments will still be increasing.

Investments by Large Institutions

There are also other massive institutional companies investing in cryptocurrency.

MicroStrategy, a notable business analytic company, for example, has converted 425 million dollars’ worth of cash in its treasury into bitcoin.

Also, Square, a payment company, made a 50-million-dollar purchase of cryptocurrency. Other publicly traded companies have also joined the train in holding bitcoin.

The more cryptocurrencies get utilized in businesses, shopping centres, e-commerce, the more the price will keep on exploding, and the more companies adopt cryptocurrencies, the more it becomes a legitimate asset.

Image from Coin Desk