Crypto Global

The current strength of Bitcoin

Nov 17, 2020

In this article we would like to take a moment to take a look at the current Bitcoin price movement.

Bitcoin once again impressed traders with its recent surge to the $16,000 mark, its highest level in nearly three years. The last time Bitcoin traded at this high was in January 2018, and many analysts believe another spike towards $20,000 - Bitcoin's all-time high - could be in the immediate future. Bitcoin got a hype this year and more than doubled in 2020 alone. Analysts say well-known investors are getting into crypto, which many people needed to build confidence in order for some more mainstream investors to have the confidence to invest in Bitcoin. Investors buying the world's most popular cryptocurrency therefore increasingly have some very famous investors among them, including well-known investment expert Paul Tudor Jones.

Analysts point out a few other factors as well. The big argument for buying Bitcoin is that it is an inflation hedge. If the euro is weaker and less stable in this environment, people will look to other currencies and consider Bitcoin and things like gold to be more stable assets because there is a certain amount in circulation rather than other assets (like the euro or US dollar) correlate.

Recently, several new Bitcoin credit cards have been introduced by several crypto platforms. Coinbase announced a US expansion for its credit card two weeks ago, which is already available in Europe. Paxful, a Bitcoin peer-to-peer marketplace, is also offering its users a new crypto credit card that they can use to purchase items and services with digital assets. And then En+, one of the largest aluminum and electricity producers in the world, dares to collaborate with BitRiver, the largest crypto miner in Russia. The new mining facility will initially offer miners 10 megawatts of power with the potential to expand to 40 megawatts. Additionally, PayPal announced its crypto offering in the past few weeks, announcing that the product will be available to PayPal customers this week. PayPal with other providers can solve one of the biggest problems of cryptocurrency and Bitcoin so far, namely the applicability of cryptocurrencies in everyday life. So far, you can buy Bitcoin, but you can't really spend it on things like coffee. A company that deals with crypto like Paypal could potentially make it a lot easier for everyday payments.

With the number of COVID-19 cases rising around the world, there is speculation about possible strategies for weaker fiat currencies and an acceleration of the digital economy. Coronavirus is only making Bitcoin even more popular as an investment option. According to a survey conducted by a market research company on behalf of Grayscale among 1,000 US consumers in the summer, almost 40% said that the Covid-19 crisis made Bitcoin more attractive as an investment. It has been recognized that the coronavirus pandemic and subsequent economic recession are driving governments, businesses, small businesses and individuals to invest in innovations like Bitcoin. Investing in areas of digitization and digital currencies could therefore make more sense for investors in this environment.