Bitcoin managed to break the $60000 mark for the first time Saturday morning, spurring more price increases as big businesses and financial firms begin using the digital currency as a tool for transactions.
According to Coinbase, the price the cryptocurrency has skyrocketed 1,263% since the previous year.
The price of Bitcoin keeps rising. The cryptocurrency rose to new heights on Saturday, shortly after it peaked out at $50,000.
The ongoing Bitcoin bull run has fuelled rumors that other businesses could suggest incorporating bitcoins or another crypto into their financial statements because the investment could be profitable. MicroStrategy has made no secret of its continual investment in Bitcoin.
Factors Behind the Bitcoin Bull Run
The appeal of Bitcoin to investors is seen as that it is thought to be a buffer against rising inflation of the US dollar.
In the event of future financial crises, many investors believe that bitcoin might take over from gold as a safe haven against fiat currency devaluation, currency depreciation. As such, bitcoin has seen a substantial rise while gold has suffered a decline through the past years.
After President Joe Biden signed the $1.9 trillion stimulus bill, we are back to predictions about inflation because of further Federal Reserve printing of currency.
As many believe, this stimulus could overheat the economy and increase costs.
Bitcoin has been supported by consumers realizing that it is a more scare option than other resources such as gold or rare metals.
The availability of bitcoins has a hard limit of 21 million added in, meaning there are just 21 million bitcoins on the planet. There are roughly 18.6 million BTC in circulation.
It’s not the only cryptocurrency that has seen a recent resurgence of interest. A number of alternative digital assets, including Ethereum, Litecoin, and Stellar, have seen a rise in the year since January 1, 2021.
Cryptocurrency exchange Coinbase, which plans to go public by the end of this year, is among the most anticipated stocks of the year ahead of 2021.
The reason for the recent surge in Bitcoin is that major financial institutions and traders are starting to participate in it as well as ordinary users, and this leads to greater demand for the cryptocurrency.
Enterprise Adoption of Bitcoin
Along with the news that Tesla and Mastercard have moved to adopt Bitcoin usage, both BNY Mellon and PayPal have recently made a number of attempts in this market.
Bitcoiners say that the new surge is distinct from recent runs, such as when Bitcoin nearly reached $20,000 in 2017, as the market plummeted 80% shortly after.
Others maintain that the price of cryptocurrency is totally unsustainable and fear that it might turn out to be the greatest speculative bubble of all time.
Merchant services like Square and PayPal enable their customers to trade it. Mastercard and Visa are accepting cryptocurrency for credit card processing as well.