Tue | 05.01.2021
FX & Currency
Bitcoin has hit a new all-time high: breaking through $30,000!
The volatile virtual currency has gained more than 170% this year amid stock market turmoil.
End of December, right before closing the year, Bitcoin jumped 4.5% to as much as $25440 buoyed by demand from large investors keen on its potential for quick profits.
There are also expectations that it may gain more widespread traction as a payment method from the likes of Starbucks and Microsoft. But it has been a bumpy ride for investors. It took the virtual currency nearly three years to top its previous record, when it peaked about $137 lower.
Analysts suggest some investors have treated it as a "safe haven asset" at a time of uncertainty caused by the coronavirus pandemic, but others warn that it remains volatile. Bitcoin fell below $3,300 at one point after reaching its previous high.
Other factors that have supported its recent rise include PayPal allowing its platform to be used to buy and sell the virtual coins in October, and a number of large institutional investors declaring interest in buying into funds tied to the crypto-currency. These include Guggenheim Partners, a Wall Street firm that announced on Friday it might put as much as $530m into a Bitcoin-related investment trust.
"It seems that barely a day goes past when we don't read a headline about a mainstream fund or company expressing an intention to put some of their holdings into Bitcoin," said Rhian Lewis, author of The Cryptocurrency Revolution.
"Price predictions are notorious for being wrong, so it's entirely likely there will be more dips and volatility.
"But this time it feels very different from the 2017 high - there seems to be more real demand, and the narrative is more measured."
She added that another factor was that investors are concerned that central bank efforts to deal with Covid-19 will fuel inflation.
Un Bank yourself!
As cryptocurrency is on the rise, so is its popularity on a grander scale. Where it was first a something for early adapters and investors, the use and the way people use them brings to light the advantages. A new trend is emerging in the business realm, where companies transfer their capital from their traditional bank account into to cryptocurrency. Constantin Rotariu (founder of Bitcoin Romania) “The reason for this migration is the growth in capital they foresee in the long term. An fixed amount in a bank account gives the security that when untouched, a few years later this amount remains. However the cost combined with the little to none interest they receive, makes it so that the purchasing power of that money is of lesser value than at initial deposit. But by putting it in the right cryptocurrency, that amount is bound to be growing, leaving you a profit. Everyone can see for example the growth of Bitcoin since it initial release. That information is easy to be found. Not only companies can do that, also individuals.”
For some more insight on this, check out Twitter CEO Jack Dorsey who shared how and why digital payments Company Square bought 4700 Bitcoins for $50 million.
Check out the statistics of Bitcoin growth 2013- December 2020.
Connecting the online and offline world: Crypto ATM’s
So far, cryptocurrency is in the online world. On platforms people trade (buy or sell). However since a few years there are multiple Crypto ATM’s which connect the online world with the offline world. In Romania are several operators, of Which Bitcoin Romania is one. However unlike the other operators the Bitcoin Romania ATM’s are not limited to trade Bitcoins only, instead you can trade in the 6 most popular (successful) crypto currency, which include of course Bitcoins, but also ETH and Light coin. The principle of the ATM machines remain the same. Which is lowering the barrier for anyone who wants to step into the world of cryptocurrency: you can just put some cash money in these machine and transfer that into your preferred crypto coin (means buying), to have your amount grow. Also the selling you can do trough these machines on the spot, which translates into cash money in your hand. At this moment there are 30 Bitcoin Romania ATM machines in Romania. Read full interview, Bitcoin Romanian ATM Network.
Check out the best performing Cryptocurrency.
This article is provided by our Cryptocurrency Partner, Bitcoin Romania.