On February 16, the price of bitcoin for the first time in history exceeded the $ 50,000 mark. The growth was preceded by a fall in the price to about $ 46,000. It took a little more than a month for the cryptocurrency to rise in price by $ 10,000. Over the course of the day, the cost of bitcoin increased by 4.83%. The capitalization of digital gold has reached $ 930 billion, which is already more than the capitalization of Facebook, Tesla and many other companies in the world.
Earlier, Galaxy Digital founder Mike Novogratz predicted bitcoin’s growth to $ 100,000. The real growth of the first cryptocurrency makes crypto investors believe that bitcoin will really show explosive growth this year.
How Tesla accelerated the price of bitcoin to a new record and what will happen next
A few days ago, Tesla announced the purchase of bitcoins for $ 1.5 billion. Tesla also indicated that it plans to start accepting bitcoins as payment for its products “in the near future” and noted that it does not plan to get rid of bitcoins “for a long time”.
This is because bitcoin is a much more stable asset class today than it was three years ago. Large companies began to take an interest in Bitcoin since March 2020. According to analysts, this trend will continue in 2021.
Nevertheless, skeptics consider Bitcoin a speculative asset and fear that it could become one of the largest market “bubbles” in history, which will eventually “burst” again, as it did in 2017. By the end of 2017, bitcoin price almost reached $ 20,000, but then lost almost 80% of its value. In this regard, some economists warn against buying bitcoins.
However, many companies are following Tesla’s lead and continuing to invest in bitcoin. For example, the company MicroStrategy this Tuesday announced a new round of selling convertible bonds worth $ 600 million. They intend to invest the proceeds in bitcoin.
Investment arm of Morgan Stanley with a turnover of $ 150 billion, known for its skill in picking rising stocks, is considering adding bitcoin to its betting list.
Development of the cryptocurrency sphere
It should be noted that cryptocurrencies continue to be introduced into various fields of activity in huge steps:
– iPhone owners have the opportunity to spend bitcoins on any purchases through Apple Pay using the BitPay service;
– The oldest bank in the United States, Bank of New York, announced that it will soon begin to carry out operations with bitcoins and other cryptocurrencies in the interests of its clients. It is expected that the main cryptocurrency services will become available to the bank’s clients this year;
– PayPal payment system made it possible for customers to buy, store and sell cryptocurrencies in a wallet on their platform;
– Mastercard said it will start working with cryptocurrencies in 2021.
The very perception of the digital world by investors is changing. In the past, we have heard a lot about the fact that bitcoin is “unsupported” and is just a digital code multiplied by reputation and popularity. However, there are more and more examples of the success of such projects on the wide market. Regarding further predictions of the bitcoin rate, Patrick Heusser, head of the Swiss crypto trading company Crypto Finance AG, believes that bitcoin now needs the help of spot buyers to fix above $ 50,000.