Bitcoin hits record high of over $34,000
Bitcoin keeps hitting new highs after it recently surpassed the $30,000 mark on its 12 year anniversary.
This all-time high comes after many investors have been showing great interest towards the cryptocurrency as it is set to become a mainstream payment method. In 2020, Bitcoin surpassed its peak of $20,000 and the cryptocurrency is not showing signs of slowing down any time soon as 2021 saw Bitcoin break through the $30,000 hurdle, reaching a high of around $34,800.
The events of 2017 (which saw the cryptocurrency go from $1,000 to $19,000 and then decrease in value to $4000) are not expected to be repeated in this case, due to many financial institutions supporting the cryptocurrency as an “asset class”, possibly replacing gold as a store of value.
CTO of Bitfinex, Paolo Ardoinio, said: “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.”
The pandemic has undeniably played a major role in the rise of bitcoin due to many different governments handing out economic relief packages to most businesses and individuals, as Russ Mould, director of AJ Bell, indicated:
“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”
Businesses have kept showing a growing interest in Bitcoin. The investment firm Ruffer has held £550m in Bitcoin in an attempt to counter the delicate monetary system and financial markets. PayPal also gave the cryptocurrency an astronomical boost after allowing its users to buy, sell and utilise Bitcoin on the platform, which surely resulted in PayPal buying newly created bitcoins.
As of now, there are over 18 million Bitcoins being traded, while the system has a set maximum of 21 million coins.