As three financial institutions have already collapsed, with Credit Suisse on the verge of collapse, concerned capitalists may turn to Bitcoin as a safer alternative outside the traditional banking system. In recent times, financial agencies in the US have been focusing on undermining the cryptocurrency industry, neglecting the disintegrating state of the banking sector right in their face.
Despite having a market cap of a little over $1 trillion, the cryptocurrency industry has been subjected to significant scrutiny and accusations of widespread illicit activities by mainstream media. Meanwhile, the banking industry has a total value of roughly $7 trillion and appears to be in a state of collapse.
In this context, it begs the question of why more attention should be given to the crisis in the banking sector and why there is a growing movement toward Bitcoin.
Why Is Bitcoin Price Rising Lately?
Despite banks losing their clients alarmingly, Bitcoin has been holding up remarkably well. This raises the question of what exactly is attracting people to it. One possibility is that Bitcoin is a digital asset that exists outside of the chaos of the traditional banking system.
It is impervious to the government and its agencies’ manipulation. Additionally, unlike in the banking system, bail-outs and bail-ins are non-existent in the BTC network.
Despite the skepticism of the traditional financial sector towards Bitcoin, its value continues to increase, reaching an all-time high in 2021. This is because Bitcoin’s decentralized nature makes it less susceptible to economic turmoil and political instability, which are more likely to affect fiat currencies.
Additionally, its fixed supply of 21 million coins makes it a scarce asset, adding to its appeal. Furthermore, the growing adoption of Bitcoin by institutional investors and major corporations, such as Tesla and PayPal, has increased its legitimacy and mainstream acceptance.
It currently trades at $26,554 and is up 6.72% in the last 24 hours, according to Coinmarketcap data.
A Hedge Against Inflation
This has led to more people viewing Bitcoin as a legitimate investment option and a hedge against inflation, increasing its price even further. While traditional financial institutions may dismiss Bitcoin as a “pet rock,” its resilience and growing value in the face of economic turmoil have made it an attractive investment option for many.
Even though financial agencies in the US focus on suppressing the crypto industry, the banking sector needs reform. The increasing popularity of Bitcoin is a testament to its appeal as a decentralized, scarce, and specific asset, rapidly gaining acceptance among retail and institutional investors.