Since early fall, cryptocurrency prices have been skyrocketing. On Wednesday, the price of Bitcoin surpassed the $ 18,000 mark, a record high since the start of 2018.
Its surge has prompted analysts to predict a further increase that could go even higher than the all-time high, reached in December 2017, when a Bitcoin was valued at $ 19,041. This phenomenon is related to the fact that Bitcoins are somewhat of a “safe investment” for some, and also because the online payment system Paypal recently authorized the use of this cryptocurrency on its platform.
As many governments around the world unveil fiscal stimulus packages to revive their economies, in terms of investment, the trend is now towards risk-taking. Cryptocurrencies, with extreme exchange rate volatility, are increasingly attractive to investors. Perhaps surprisingly, they are seen as a safe long-term investment for some, as gold is for older generations.
Bitcoin can potentially be of interest to anyone as long as they own a computer or smartphone. Some Internet users take them as a more or less long-term investment, others use them for money laundering. If a member of the general public wants to start playing with cryptocurrencies, they can do so by investing a few euros or dollars in Bitcoin or Ethereum.
But the recent dramatic surge in the price of Bitcoin is also linked to Paypal’s announcement that its platform now accepts Bitcoin transactions in the United States, and will begin to do so elsewhere in the world in 2021. This opens up new possibilities. new horizons for cryptocurrencies, like the online payment system is used on millions of websites (notably eBay). Until now, spending Bitcoins online has been rather confidential, as you have to sell them to exchange them for local currencies.
The most optimistic economists predict that the price of Bitcoin could climb to $ 250,000 by the end of 2021 (tenfold growth in a year!) While more conservative experts believe its price will drop in a few months. Three years ago, after hitting a record high ($ 19,000), the price of Bitcoin collapsed within a few weeks, dropping to around $ 7,000 in the following months.
Analysts note that while Bitcoin remains the most popular cryptocurrency, others are also seeing growth in value, particularly Litecoin and Ethereum. NVG
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