The world’s most popular cryptocurrency, Bitcoin has ended 2020 with a bang, the digital currency breached more than $34,000 for the first time ever, on its 12th anniversary of creation. Beating gold and corporate bonds it is the most crowded trade which is gaining acceptance as a futuristic store of value.
Bitcoin was created to let users’ complete control over their finances. Bitcoin is not controlled by the government or banks and can be spent fairly anonymously although all the transactions are recorded in blockchain. As banks announced that it would allow customers to buy, sell and use cryptocurrency, Bitcoin received boost from PayPal. It is believed to be on its way to becoming a mainstream payment method. Bitcoin has seen demand grow from larger US investors.
The value of bitcoin has gone up and down over the years and some people do not think it is safe to turn real money into Bitcoins. The first real price increase of Bitcoin occurred in 2010 which went from $0.0008 to $0.08 for a single coin. And now has regained its losses and is pushed past its previous all-time high. There are more than 18.5m bitcoins in circulation and has a market capitalization of over $428 billion. With its all-time-high and having more infrastructures and institutional investments than ever, it does not seem to be going anywhere.
However, many investors and people believe that crypto currencies are scam and do not see it as an investment worthy asset class whereas some Bitcoin is the new gold. What are your thoughts about it?