On a recent note, the US dollar hit its lowest level since April 2018, sparking concerns among investors about potential inflation due to stimulus packages. With hopes resting on the efficacy of vaccines to restore normalcy, investors are increasingly turning to riskier ventures. In such a speculative environment, Bitcoin, a prominent cryptocurrency, has surged to new heights.
Bitcoin’s value has experienced a remarkable surge over the past few days, currently standing at nearly $30,000. Since the start of December, Bitcoin’s value has soared by over 47%, marking its most significant increase since May 2019. With notable investments pouring in, its overall value has nearly quadrupled.
Besides being viewed as a more appealing option compared to the weakening US dollar, many anticipate a rise in Bitcoin’s everyday usage in the near future. PayPal, after integrating a crypto trading platform, now holds approximately 70% of all circulating Bitcoins. Numerous hedge fund managers have also disclosed their own investments in Bitcoin.
$29,000 #Bitcoin. $540B market cap. pic.twitter.com/6tobgL8TUf
— Bitcoin (@Bitcoin) December 31, 2020
Some are now comparing Bitcoin to digital gold, turning to it as a safe-haven asset. Gold, having peaked in August, has been on a decline and currently sits at around $1,879 per ounce. Speculations are emerging about a potential investment showdown between gold and Bitcoin in 2021.
“With the ongoing narrative of increased institutional involvement, we may witness a surge in retail interest in Bitcoin as a digital gold alternative,” commented Paolo Ardoino, the chief technology officer at Bitfinex crypto exchange.
