Bitcoin Exceeds $ 20,000 for the First Time

Finance
Bitcoin exceeds 20.000 Dollars for the first time

VIRTUAL CURRENCY: The most famous cryptocurrency, Bitcoin broke its record this Wednesday

Bitcoin, the first cryptocurrency decentralized, exceeded the $ 20,000 threshold for the first time in its history Wednesday, taking advantage of an appetite for risk markets that has almost tripled its value in a year. At around 3:20 p.m. PST, bitcoin cost $ 20,612.40 and saw its value nearly triple over the year, moments after hitting an all-time high of $ 20,787.35, according to data compiled by the Bloomberg agency.

The recent rise in bitcoin was sparked by the launch of a cryptocurrency buying, selling and payment service by online payments giant Paypal on October 21st. In addition to this service intended for individuals, investment funds are increasingly interested in this asset in sudden price movements, although they have long been wary of it.

An alternative to gold as an investment

“The use of bitcoin by traditional investors is only just beginning,” warned analysts at JPMorgan bank, who compare digital and decentralized currency to gold. For many followers of bitcoin, the latter draws its appeal from its decentralization: created by a network itself invented by anonymous people in 2008, it, therefore, does not depend on any institution.

Cryptocurrency, therefore, offers a more modern alternative than gold to the dollar, which is currently evolving at very low levels due to the monetary easing measures of central banks, taken to revive the economy in the face of the Covid-19 crisis.

“The holiday season could be quite pleasant for bitcoin, which would be carried by the wave” of optimism in all markets, believes Craig Erlam, an analyst at Oanda, who notices that the increase comes precisely when the US Federal Reserve (Fed) meets. This flexibility of central banks benefits other risky assets: Tuesday, the US Nasdaq index, predominantly technology, finished with a new record.

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