Why more people want more Cryptocurrencies

The demand for Bitcoin and cryptocurrencies is exploding

Data provided by Yassine Elmandjra – a crypto asset analyst at technology investment fund and research company ARK Invest – shows that “relative Google search interest” for the term “bitcoin” is at an all-time high in “several emerging countries” is approaching (first seen at the peak of the bubble in 2017-2018): Peru, Guatemala, Zambia, Uruguay, Kenya, Nigeria and Burkina Faso.

 

What is the cause of this trend?

Unfortunately, nobody has a specific answer. But there have been a number of trends that appear to support growing demand for investments in Bitcoin and crypto assets.

Central banks and printing money as if there was no tomorrow:

To prevent social unrest and an economic depression following the outbreak of the coronavirus, central banks and governments have started to take emergency measures by distributing money free of charge to consumers, the interest rates to boost spending and inject trillions of liquidity into bond markets to keep the economy going.

The halving of Bitcoin is imminent:

 In about 6 weeks, the number of BTC generated daily will halve due to the so-called “halving”. This makes cryptocurrency scarcer than gold and fiat if you assume an annual inflation rate of 2 percent and an annual growth in physical gold inventory of 2 percent.