Bitcoin has been flirting with the $ 30,000 mark for weeks and finally broke its all-time high on Saturday. The virtual currency is now valued at over $ 33,000, which is a record high.
Bitcoin
Bitcoin (XBT) has tripled in value in 2020, rising steadily even as the stock market plummeted in the early days of the pandemic. Along with other cryptocurrencies, investors were drawn to it, as the US dollar weakened.
Bitcoin is now valued at over $ 33,000
While the Federal Reserve is expected to keep interest rates close to zero for several years, Bitcoin may continue to gain new fans.
Well-known names add to Bitcoin's general appeal. Rick Reader, BlackRock (BLK) Fixed Income Investments Manager, said the digital currency could replace gold. Payments giant PayPal (PYPL) has embraced Bitcoin, after the reluctance to do so.
This is not the first bitcoin price hike. It was a hit in 2017 and hit its then all-time high of over $ 20,000. But its price dropped to just over $ 3,000 in early 2019 as China continued its crackdown on
cryptocurrency companies. It then recovered to $ 8,000 in May 2019. It jumped above $ 20,000 in December and rose rapidly last month. Bitcoin experts remain optimistic about the currency.
“When the price of an asset rises so rapidly for an extended period, I exercise caution and urge anyone who trades BTC not to indulge in euphoria,” said Nicolas Pelikanos, Head of Trading at NEM cryptocurrency.
However, you would expect bitcoin to hit $ 50,000 by Valentine's Day. "I think we are at the start of what is going to be a huge bull market."
Bitcoin
However, even as Bitcoin became mainstream, the currency was still commonly used by crooks, giving it negative attention. Last July, hackers took control of Elon Musk, Bill Gates, and Barack Obama's Twitter accounts in an apparent attempt to earn income by cheating people with Bitcoin.
Due to the decentralized and almost anonymous nature of the currency, it can be difficult to recover funds after being lost to a scam, as there is no central authority - like a bank - to intervene.
Decentralization has made cryptocurrency a favorite among crooks, even when it attracts both technologists and investors.
Source: CNN Business
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