By Eurasia Business News, April 15, 2021

Bitcoin increasingly stands as a potential rival for gold as a store-of-value investment because, like gold, it is a hedge against currency devaluation due to inflation. Picture : View on a Bitcoin coin, photo credits : Pexels.

Bitcoin price continues to rise as investors and traders eye on Coinbase Global Inc., the famous cryptocurrency exchange, that was listed on the the Nasdaq on Wednesday April 14.

Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, listed on the Nasdaq stock exchange on Wednesday April 14, (NASDAQ : COIN) marking a milestone in the journey of virtual currencies from niche technology to mainstream asset.

After opening at $381 on April 14, Coinbase shares (NASDAQ : COIN) soared to as high as $429.54 before dropping more than 100 points over the next hour and a half to close at $328. As of April 15, at 5:55 AM ET – PRE-MARKET, Coinbase shares price was $361.85 on NASDAQ :

The last wave of growth in the Bitcoin rate began on March 25, after the cryptocurrency dropped to $ 50,000. The cryptocurrency continues to rise in price amid listing of Coinbase shares on NASDAQ on April 14. The company became the first-ever public crypto exchange. Coinbase Class A Common Shares are now traded on the NASDAQ under the ticker COIN.

“The listing is significant in that it marks the growth of the industry and its acceptance into mainstream business,” said William Cong, an associate professor of finance at Cornell University’s SC Johnson College of Business, to journalists of Reuters in April.

In January, Coinbase launched a limited-market share sale on the Nasdaq Private Markets platform to determine the price for the listing. In February, the value of Coinbase shares reached $ 373, which increased the company’s valuation to $ 100 billion. However, in March, the private market transactions estimated the value of Coinbase at $ 68 billion.

A price growth to last ?

Bitcoin is likely to continue to rise in value as it is used to hedge against inflation and the consequences of pandemics. This bitcoin rush would be favoured in particular by the status of the cryptocurrency against the depreciation of “classic” currencies, by the interest aroused among an increasingly wide range of institutional investors and the growth of the blockchain industry.

Large investors, banks from Goldman Sachs to Morgan Stanley, investment fund like  SkyBridge Capital, fintech like Paypal or Square Inc. and industrial tech companies such as Tesla Inc have invested significant funds in Bitcoin.

In addition, the US Federal Reserve Chairman Jerome Powell called Bitcoin “a substitute for gold” in his speech at an event hosted by the Bank for International Settlements (BIS) on March 22.

On March 24, the tech billionaire Elon Musk announced on Twitter that it was now possible to buy a Tesla car with Bitcoin and that Bitcoin paid to Tesla will be retained as crypto and not converted to fiat currency.

As some may worry that Central Banks and States may adopt restrictive regulation against crypto-currencies and Bitcoin, we should keep in mind that today millions of medium and large investors have chosen Bitcoin as an asset generating value. Any restriction that could hit the value of crypto-currencies chosen by large investors such as Banks and tech companies could cause harmful financial losses. Amid fragile global economic recovery and fears of inflation, Central Banks and States cannot afford it. This contributes to the growing role of Bitcoin as a store of value, in spite some volatility.

Read also : Bitcoin crosses $ 30,000 for the first time

Read also : Bitcoin surpasses $ 19,000 for the first time in three years

Thank you for reading us !

Sign up and get our business news right in your inbox !

© Copyright 2021 – Eurasia Business News