LAST UPDATED: Jan. 3, 2021, 12:51 p.m.
New Delhi (Anish Yande): Bitcoin, the popular cryptocurrency, crossed another important benchmark during the first weekend of 2021. The cryptocurrency continued its rally in the new year, surpassing the $30,000 mark. The popular digital currency subsequently crossed the $33,000 mark.
Bitcoin rates cross $33,000 on Saturday:
On Saturday, Bitcoin reached a trading high of $33,099. In 2020, Bitcoin had risen by more than 300%. The digital currency surpassed the $20,000 a few weeks ago. Bitcoin has risen by more than 50% in the past few weeks.
The digital currency started trading in 2009, produced by ‘mining’ computers that compete to solve mathematical puzzles. The number of investors in Bitcoin has risen manifold in 2020. Some investors considered Bitcoin as a safe haven against economic instability during Covid-19.
Investors Cite reasons to invest in Bitcoin:
Investors tend to invest in Bitcoin, citing the potential for rapid gains in a short time.
Investors also cite the Bitcoin stock to flow, which has been predicted with 100% accuracy. Only a limited amount of Bitcoin is in circulation and the amount of supply in a year is restricted. The stock to flow is often associated with an upcoming eventual increase in bitcoin rates due to scarcity.
Payment apps adopt Bitcoin:
Due to a weak US dollar, the rising prominence of Bitcoin has led many investors to place their bets on the digital currency. The US Federal Reserve is expected to keep the interest rates on bitcoin at negligible levels for the upcoming years.
Payment apps such as Cash App had quickly adopted Bitcoin along with other payment methods. In Q3 2020, the revenue from Bitcoin for Cash App rose to $1.63 billion. Cash App recorded a gross profit of $32 million.
PayPal, which was previously unsure about including Bitcoin, has sped up the launch of Bitcoin services on its platform. PayPal allows users to buy and sell Litecoin, Ether, Bitcoin, and Bitcoin Cash. Various payment platforms are recognizing Bitcoin as a payment method.
Image Credit: Google