By Eurasia Business News, August 23, 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 soars to $ 50,000 again for first time since the beginning of May.
On August 23, Bitcoin was worth $ 50,348 at 11:39 am Paris time. At the closure of August 22, Bitcoin price was $49,397.03.
Bitcoin price hits to $ 64,829 in April 2021, but then began to fall, having lost more than half of its value in the period from mid-May to the end of June.
Bitcoin rose in price in April 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 growth of Bitcoin has been more 70% since December 2020.
Despite the fact that $ 50,000 is a round number, experts believe the next level of resistance is the $ 51,000 mark.
The Bitcoin capitalization, according to Coindesk, is now more than $ 945 billion.
This growth of Bitcoin should fuel investments in the cryptocurrency, as as it is used to hedge against inflation and the consequences of coronavirus pandemics worldwide.
The Bitcoin rush is 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, JP Morgan 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 or have started to offer access to crypto-funds.
On August 20, it became known that Coinbase will buy $ 500 million worth of cryptocurrency, and will also invest 10% of the profit in digital assets.
The Bitcoin and Ethereum price, combined making up more than half of the $ 2 trillion crypto market, have surged in 2021.
Cryptocurrencies are now backed by financial institutions, exchanges, miners. The more actively the crypto-infrastructure develops, the faster Bitcoin and other cryptocurrencies rate will grow.
On July 21, the Tesla founder Elon Musk confirmed that he owns bitcoins and do not plan to sell them. The tech tycoon said this during the conference “The B Word”. 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.
Read also : Bitcoin crosses $ 30,000 for the first time
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