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Bitcoin Surges Past $30,000 In Value For First Time


01/03/2021


Bitcoin Surges Past $30,000 In Value For First Time
The value of the digital currency Bitcoin surged further and increased its record breaking rally at the beginning of the new year with its value increasing more than $30,000 for the first time in its history as more and more investors and traders showing confidence in the crypto currency that it is on its way to being recognized as a payment method in the mainstream financial world.
 
On Saturday, the price of the most popular crypto currency of the world was as high as $33,099 as almost all other markets remained closed over the first weekend of 2021. It was last up about 12% at $32,883.
 
For the entire of 2020, the value of Bitcoin surged by an astounding more than 300 per cent and with its latest surge in value, it rose by more than 50 per cent since it had gone past the psychological $20,000 value mark just about two weeks ago.
 
It was only about a decade or so that the block chain currency was launched and there has been an increase in its demand from larger investors in the United States in 2020 because of them being attracted to the digital currency as it is being perceived to be have inflation-hedging qualities as well as for its potential for allowing quick gains. There is also a growing and wide spread expectation that this crypto currency will soon become a mainstream payments method.
 
In recent days, the upward moves of the crypto currency were powered by the limited supply of bitcoin, said investors. Bitcoin is produced by the so-called “mining” computers that validate blocks of transactions by competing to solve mathematical puzzles.
 
This crypto currency was also viewed some investors as a safe-haven play such as gold during the uncertainty in the equity markets because of the Covid-19 pandemic.
 
“It’s very likely that the asset will eventually pass $100,000 per coin,” Sergey Nazarov, cofounder of Chainlink, a global blockchain project, wrote in an email on Saturday.
 
“People have been steadily losing faith in their government currencies for years, and the monetary policies resulting from the economic impact of the coronavirus have only accelerated this decline,” Nazarov added.
 
Currently numerous exchanges allows trading of Bitcoin out of which the largest one is Coinbase, which is itself preparing to go public and become the first such platform to list on Wall Street.
 
Block chai, or electronic ledger based technology similar to that of Bitcoin is also used by multiple competitor crypto currencies. The second biggest crypto currency is Ethereum which has gained as much as 465 per cent in total in 2020 with an almost 7 per cent surge being recorded on Saturday alone.
 
(Source:www.economictimes.com)