Cryptocurrencies are popular


The rally of digital assets reflects a drop in demand for fiat currencies in the face of increased price pressure, reducing the purchasing power of the dollar, euro, pound, yen and most other traditional means of exchange. The value of cryptocurrencies is determined directly by supply and demand without any interference from the government.

And it’s not just speculative madness that is pushing cryptocurrencies to growth; the possibility of using tokens as a payment tool has also contributed.

The support of Block (NYSE:SQ) CEO Jack Dorsey and Tesla (NASDAQ:TSLA) founder Elon Musk contributed to the success. By the end of 2021, the number of companies accepting cryptocurrency as a payment instrument has greatly increased, while many representatives of the corporate sector create their own stocks of tokens, and investors use digital currencies as an inflation hedging tool.

Speculators continue to heat up prices

Nothing can provide more support to the markets than a bullish trend. In 2010, one bitcoin was worth five cents; this means that those who invested $100 at the time could sell their tokens for $94 million at the end of 2021.

The potential for incredible profits attracted speculators. If this trend continues in 2022 and beyond, appetites will only grow. Bull markets can be fueled by their own movement, as the chance to get rich attracts new players.