Bitcoin Value Surges To $34,000 For First Time Ever
It seems like there’s a headline about Bitcoin setting a new record every day at moment, and this seemingly unstoppable rise continued over the weekend, with the cryptocurrency hitting a new high of $34,000 (£24,850).
We’re only a few days into 2021, but this year Bitcoin has already increased in value by $5,000, and although the currency has settled at around $33,000 since peaking yesterday, there are no signs that the trend is slowing.
Bitcoin’s current run, which began midway through last year, has seen its value increase by 300% in less than 12 months, with analysts putting its popularity down to high-level investors looking to make quick profits off the currency’s fast growth rate.
Cryptocurrencies like Bitcoin and Ethereum have seen success at a time when the value of real currencies, like the US dollar, have been dropping due to the pandemic, with Ethereum logging an even bigger rise than Bitcoin itself, increasing by 465% in 2020. So perhaps it’s no coincidence that the virtual coins are increasingly being looked at as an alternative form of payment by major companies like Paypal, which recently introduced Bitcoin wallets to its app for US customers.
Most of us will have come across someone who believes that it’s only a matter of time before Bitcoin replaces real money as a dominant currency, but despite its current trajectory, there are plenty of other people urging caution on the cryptocurrency trend. Bitcoin went on a similar memorable run in 2017, coming within a whisker of breaking the $20,000 barrier, but a market correction soon saw the virtual currency come crashing down to Earth, collapsing to below $3,300.
Although Bitcoin’s current surge saw it break the $20,000 barrier shortly before Christmas, some have warned that a similar fall could be on the cards.
Economic professor Nouriel Roubini told Yahoo Finance:
The price of bitcoin is totally manipulated by a bunch of people, by a bunch of whales. It doesn’t have any fundamental value.
We’re close to the point where the hyperbolic bubble is going to go bust.
Bitcoin skeptics predicted that the currency was heading for a drop back in November, when its value slid by 13%, but since then its growth has gone on to hit new heights, culminating in this latest milestone on Sunday (Jan 3,) which coincided with the 12th anniversary of the cryptocurrency’s creation.
No one can be sure how – or even – this current run will end, but whether you’re all in or a skeptic, it looks like the Bitcoin hype train isn’t going away any time soon.
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