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Bitcoin breaks record and exceeds $ 20,000 for the first time

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The value of bitcoin, the most well-known cryptocurrency in the world, reached the highest point ever, surpassing the $ 20,000 barrier, registering at the time of this writing at $ 22,755 at Coinbase, currently approximately € 16,685 or R $ 115,872.

The cryptocurrency rose more than 6% yesterday, extending a winning streak this year by increasing interest among large investment firms attracted by its potential for rapid gains. The price of bitcoin has risen more than 400% this year, and had its lowest point in March, registering around $ 3600, when the coronavirus pandemic sparked a huge sale in the financial markets worldwide and like the cryptocurrency market. passed by.

Some analysts have pointed out that unlike previous situations, the value of cryptocurrency will continue to increase, as the pandemic and the expected crisis that will happen during 2021 points to many companies betting on this type of assets.

Nigel Green, the chief executive of deVere Group, a financial company that operates a bitcoin exchange, told The Guardian: “They are being attracted by the good returns that the digital asset class is currently offering, but more importantly , due to the enormous future potential it offers, not only in bitcoin, but in the varied offers that the market has. ”

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“As some of the world’s largest institutions, including multinational payment companies and Wall Street giants, are increasingly betting on cryptocurrencies, bringing with them enormous experience and capital, which in turn increases consumer interest.”

Bitcoin’s recovery comes after a 2017 peak in digital currency, when it rose more than 900% to get close to $ 20,000 in mid-December, with global financial leaders and economists warning of a price bubble and that the drop would be big , as it just happened in early February, with Bitcoin falling below $ 7,000, but never reached zero as predicted by some analysts at the time.

Investor interest has grown in bitcoin as a potential form of protection against rising inflation. Expectations among investors for higher inflation rates have been rising in recent weeks, fueled by the prospect of a stronger global economic recovery next year, thanks to the Covid vaccine and stimulus measures by central banks and governments in advanced economies.

Ruffer, a UK-based investment management company, last month placed a bet on bitcoin that is now worth around £ 550 million, in one of the biggest signs of growing demand among traditional investment managers. A spokesman said the idea was to diversify the company’s portfolios into gold and inflation-linked bonds. “[Isso] it acts as a hedge against some of the risks we see in a fragile monetary system and distorted financial markets. ”

Ayush Ansal, investment director at Crimson Black Capital said that public interest in bitcoin will be renewed at Christmas. “After being in a wasteland since the famous run of late 2017, cryptography and bitcoin in particular are back. Bitcoin has been approaching the $ 20,000 symbolic barrier for some time and has finally been overcome. ”

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Want to read GSMNigeria more news? See Related Posts below

Originally published on GSM Nigeria Blog! All rights reserved Nigeria GSM
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