By Eurasia Business News – November 24, 2020
Bitcoin, the famous cryptocurrency created in 2009 surpassed $ 19,000 for the first time in three years – Photo credit : Pexels
Slightly forgotten in recent months, bitcoin is back. The rate of the most famous of crypto-currencies continued to rise on Tuesday and surpassed $ 19,000 for the first time in three years.
Bitcoin is currently trading at $ 19,231, up 4.76% from the previous day’s close, revealed the CoinDesk platform. This is very close to the all-time high of $ 19,783, which was recorded in December 2017.
Since January, the bitcoin has risen in price by 155%, including over the last month its price has risen by more than 50%. This rally attracted the attention of a wide range of people, including large investors, which supported further buying growth.
It appears that the cryptocurrency is likely to continue to rise in value as it is used to hedge against inflation. This bitcoin rush would be favored in particular by the status of digital currency against the depreciation of “classic” currencies and by the interest aroused among an increasingly wide range of investors.
Like many investors, the strategist of the Deutsche Bank, Jim Reid, considers that Bitcoin would be partially replacing gold to hedge dollar risk and inflation. He wrote about it in the firm’s “Imagine 2030” report on 24 alternative ideas for the next 10 years.
Last October, the payment company Square Inc. bought 4,709 bitcoins, worth approximately $ 50 million. This amount represents about 1% of Square’s total assets as of the end of the second quarter of 2020. Square Inc. listed at the NYSE, explained in a press release that :
“Square believes that cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company’s purpose.”
In addition, the online payment company PayPal Holdings Inc. announced in October that its US customers are now eligible to buy, sell and hold cryptocurrencies directly with PayPal wallet. While it will take a few more months for this service to be accessible to all of its 26 million merchants worldwide, the most fervent supporters of cryptocurrencies say it is only a matter of time before other large companies follow in the footsteps of PayPal.
However, history shows how Bitcoin prices are volatile. In March, quotations fell to $ 3,867 – more than 60% compared to the end of last year, which was due to the general negative in world markets due to the COVID-19 pandemic. Since the prices of cryptocurrencies seem to be highly sensitive to the state of the world economy, anyone willing to buy and own digital assets such as bitcoin should keep it in mind.
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