The leading Digital currency Bitcoin saw its surge beginning this year with its price passing $30,000 for the first time with more investors and traders betting that it is on its way to become a mainstream payment method.
Analysts noted that “the appetite for risk,” buying the Bitcoin remains unshakeable.
In 2020 Bitcoin advanced more than 300% in 2020, the Cryptocurrency saw its growth from U.S. Investors, attracted by its quick gain quality and with an expectation that it will become a mainstream payment method.
Bitcoin has seen a rapid raise since March, when it was at $5000, impelled by online payments gaint paypal saying it would enable account holders to use Cryptocurrency.
JP Morgan Chase compared the Cryptocurrency to gold
“Bitcoin could compete more intensely with gold as an
‘alternative’ currency over the coming years given that millennials will become
over time a more important component of investors’ universe,” they said.
A Huge number of central banks have responded to the rise of Cryptocurrencies
and the decrease in global use of cash by announcing plans for bank-backed
digital units.
United States Federal Reserve and central banks of Sweden and China are also testing digital applications in response to Facebook’s recent moves to produce its own digital unit, Libra.
Many saw it as a safe-haven play during the COVID-19 pandemic, similar to gold.
Unregulated by any central bank, bitcoin emerged as an attractive option for investors with an appetite for the exotic — although criminals have also picked up on its under-the-radar appeal.
Debate has meanwhile raged over the status of the digital asset, launched in late 2008, as to whether it should be seen as a form of money, an asset or a commodity.
