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Just weeks after it broke its year-long aspiration to hit $ 20,000 in value, Bitcoin is at it again. On Saturday the cryptocurrency passed $ 33,000 in value, according to CoinDesk, before declining slightly throughout the day.
Bitcoin’s new gains represent an all-time high for the coin, a surprising change considering where it was almost a year ago. In March, Bitcoin lost 50% of its value in two days, dropping below $ 4,000, reflecting volatility on Wall Street during the early days of the pandemic. However, the world’s leading cryptocurrency closed the year with an increase of more than 300%, by CoinDesk. At the time of this blog posting, it had risen 10.62% in the last 24 hours and had a market capitalization of $ 605 billion.
However, as we have said before, this is not intended as an encouragement to go out and buy Bitcoin. (Considering that we are currently in a global health crisis, do not use your hard-earned savings to buy Bitcoin.) The cryptocurrency is notorious for its bad mood, and in recent years it has generated as much excitement as it has. despair.
Case in point: In 2017, the last time Bitcoin approached $ 20,000 in value, it lost more than 80% of its value the following year.
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Bitcoin has certainly benefited from increased oversight, such as the creation of the FICO Cryptocurrency Risk Assessment Solution for banks, as well as more investment and institutional support. In November, the Guggenheim Macro Opportunities Fund announced that it could seek to invest up to 10% of its net asset value in Bitcoin. PayPal also gave Bitcoin and other currencies a thumbs up last year when it announced that accept cryptocurrencies for online payments and also allows its users buy, sell and hold CRYPTOCURRENCY.
Other players with investing power, such as Rick Rieder, director of global fixed income investments at BlackRock, the world’s largest asset manager, said that Bitcoin was “here to stay” and had the potential to replace gold. That being said, as of November Rieder had not added Bitcoin to any of his investment portfolios.
Bitcoin’s new record has caused a stir, with some financial experts saying it is on its way to increase even more. Others disagree and they say that it is too expensive, possibly more than 50%, and that its actual fair value is about $ 12,000.
