Bitcoin rose to a new all-time high on Thursday, one day after the milestone of $20,000 (approximately Rs 14.7 billion) for the first time in one day after the increasing interest of large investors.
The world’s largest cryptocurrency jumped 10.5% to US$23,655 (approximately 174 trillion rupees), and its increase this year is more than 220%, thanks to the demand from large investors boosting its potential for rapid growth and people Think of the quality of the inflation hedge.
The smaller coin Ethereum, which usually moves in tandem with Bitcoin, has a transaction price increase of 1.75%.
Since the supply cap of Bitcoin is 21 million, investors have seen hedging tools to hedge against inflation risks in cryptocurrencies, because the government and central bank have initiated stimulus measures in response to the COVID-19 pandemic.
Deutsche Bank analysts wrote in a report: “Due to the continued depreciation of legal tender, an alternative currency will be sought.” “I do feel that Bitcoin will continue to be in strong demand.”
Cryptocurrencies appeared more than ten years ago, but were quickly associated with crime, transaction failures, hackers, and crazy price fluctuations. Only in the past few years have they begun to attract more mainstream interest.
Bitcoin is still less regulated than most traditional assets, but as better market infrastructure makes the crypto market more accessible, institutional investors have begun to express doubts about cryptocurrencies.
Increasing expectations are driving the 2020 rebound, and as PayPal opens its network to cryptocurrencies, it will become a mainstream payment method.
Despite this, few people or companies use Bitcoin for commercial transactions.
Yang Li of the digital foreign exchange trading platform Ziglu said that modern personal finance applications have always been at the forefront of ensuring easy, safe and fast access to cryptocurrencies.
Lee said: “Broader adoption will further increase the value of Bitcoin. This is just the beginning.”
© Thomson Reuters 2020
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