Bitcoin hits new highs after surpassing the $30,000 mark on its 12th anniversary as financial institutions continue to express growing interest
The newly recorded high comes after a number of investors continued to show their interest towards the cryptocurrency as it is tipped to become a mainstream payment method. The year 2020 saw Bitcoin surpass a number of highs including surpassing the $20,000 benchmark and it seems like the cryptocurrency is showing no signs of slowing down as 2021 saw Bitcoin break through the $30,000 barrier, reaching a high of $34,800.
According to the Guardian, it is expected that the latest growth will not replicate that of 2017, were the cryptocurrency went from $1,000 to $19,000, only for it to decline back down to $4,000 by 2018. This is due to several financial institutions backing the cryptocurrency as an “asset class”, even potentially displacing gold as a store of value.
CTO of Bitfinex, Paolo Ardoinio (left), stated that: “The number keeps going up as the market has seemingly never been more bullish. We see a very bright future ahead for all bitcoin holders.”
Furthermore, the pandemic has also played its part in the rise of bitcoin due to several governments handing out economic relief packages to businesses and individuals alike, as Russ Mould, director of AJ Bell, said:
“Some will argue that there is more to come from both gold and bitcoin, especially if governments keep piling up debts and central banks do their best to fund that borrowing through the backdoor with quantitative easing, zero interest rates and bond yield manipulation, thanks to the scarcity value relative to cash”
Meanwhile, he also argued that many people will consider gold and bitcoin to have no “intrinsic value” due to their inability to generate cash.
However, this has not stopped businesses from showing interest in Bitcoin. Investment firm, Ruffer, has held £550m in Bitcoin in a bid to counter the delicate monetary system and financial markets. While PayPal also gave the cryptocurrency a massive boost after allowing customers to buy, sell and use Bitcoin on their platform resulting in PayPal buying newly created bitcoins.
Presently, there are over 18 million Bitcoins circulating in existence and the system has a hardwired maximum of 21 million coins.
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