Bitcoin Hits $ 41,000 This 2021: Analysts Believe it May Displace the Gold

Bitcoin News Hits
Bitcoin News Hits

Bitcoin, the flagship cryptocurrency, continues to record new highs at the start of 2021. This week it rose 8% to a record $ 41,000..

At 15:15 around the world, the digital currency traded at $ 41,000 , an absolute record. On the closing of the markets on Wall Street, it cut the daily rise to 6%, in the area of ​​$ 39,000.

It was on January 3, 2009 when the world economic panorama underwent a clear metamorphosis. This was the date chosen by Satoshi Nakamoto (a financial genius whose true identity is unknown) to mine the first block of Bitcoin, the first electronic currency that has not stopped growing exponentially, leaving everyone stunned.

Among the main characteristics that define this payment system, it should be noted that it is not subject to the regulation of a government or central bank . It lacks – at least for now – legislation, and therefore, it is the users themselves who mark its real cost through the trust deposited and by the mere action of supply and demand.

Although its price is around $ 41,000 today in this 2021, its value has not always been the same. In fact, in 2010 it cost only 20 cents on the dollar, a situation that people like Laszlo Hanyecz took advantage of, an American programmer who used the 10,000 bitcoins he had in his possession for the first time when paying for two pizzas for $ 30. To get an idea of ​​the magnitude of this currency, this transaction today would be around 300 million US dollars.

History of bitcoin. From 2011 to the present

As of 2011, its face value began to grow like foam. By the middle of that date it was around the figure of 20 dollars per unit. Confidence in this currency was such that some of the institutions at that time began to accept it as a form of payment when receiving electronic donations, apart from the more conventional ones such as PayPal or Visa.

However, in 2013 Bitcoin suffered its first “hit”. BTC lost almost 25% of its real value because the FBI closed the website known as Silkroad, a portal that used this cryptocurrency to finance the black market for drugs.

Despite this delicate situation, it didn’t take long for bitcoin to recover. At the end of that same year, it exceeded the threshold of $ 1,000, a figure that was 4,000% more than on the date of its launch.

From this moment, millions of anonymous people, small companies and even large multinationals began to make their first investments in bitcoins. This fact prompted the UK government to carry out an in-depth study in 2015 detailing the risks and the need to start regulating it.

“Bitcoin gained in ten months, since March 2019, more than 900% , as governments increase spending to cushion the economic impact of the coronavirus, raising fears of an advance in inflation and a depreciation of the dollar”

The cryptocurrency is also gaining ground among more mainstream investors who are increasingly convinced that Bitcoin will be a lasting asset, and not a speculative bubble as some analysts and investors feared.Bitcoin accumulates a 900% rise in ten months, since last March the coronavirus began to impact global economic activity

Sergey Nazarov , co-founder of Chainlink, a decentralized network that provides data to electronic blockchain contracts, told Reuters that there is a “lack of faith in traditional institutions that is driving this huge surge in crypto assets.”

“While outsiders may view the value of the over $ 1 trillion cryptocurrency industry as an incredibly significant milestone, it is actually still in one of its early stages of development and growth,” Nazarov said.

The market capitalization of all cryptocurrencies rose 10% to $ 1.042 trillion on Thursday, according to data from CoinMarketCap. Bitcoin represents about 69% of the total market capitalization. Ethereum follows with 13%.

Cryptocurrencies rival gold

In the search for a refuge of value , in the face of a prospect of devaluation of traditional currencies, Bitcoin became a rival of gold and its price could reach USD 146,000 if it is established as a refuge asset, said a report from the investment bank JP Morgan (JPM).

Investors see the world’s leading cryptocurrency as a hedge against inflation and an alternative to the depreciation of the dollar. Its price tripled in the last six months to the record high of 39,300 for this wheel.In the first week of 2021, Bitcoin accumulates a gain of 37%

“Bitcoin’s competition with gold has already started in our minds,” JPM strategists said in a note, citing recent $ 7 billion gold leakage and more than $ 3 billion of revenue at the Grayscale Bitcoin Trust.

That could mark a new dawn for the volatile digital currency, after years of being seen as a game for speculators and retail gamblers.The irruption of the millennial generation in the financial world catapulted the valuation of cryptocurrencies

“Considering how large the financial investment in gold is, a displacement of gold as an ‘alternative’ currency implies a great advantage for Bitcoin in the long term,” said JP Morgan.

Bitcoin is likely to overtake gold as millennials become a more important component of the investment market , over time and given their preference for “digital gold” over traditional bullion, JP Morgan added.

Unstoppable Bitcoin: exceeds $ 41,000 and has only needed three weeks to double in value

Bitcoin has already passed the barrier of US $ 40,000. A milestone for the most popular blockchain-based cryptocurrency of all. But if the $ 40,000 is surprising, it is even more so that three weeks ago it was only worth half of what it is worth now.

For just a few moments and before it goes down again, Bitcoin has been above $ 40,000. This means that 1 bitcoin is worth $ 40,000. Currently and at the time of writing, the price is around $ 39,000 according to CoinMarketCap.

This is causing its market capitalization to go through the roof as well, at more than $ 700,000,000,000 right now. A figure that makes the record $ 328,898,790,192 from November 2020 now laughable.

More and more trust by institutions

What has been the factors that have caused this surge of madness in recent months is not entirely clear. However, some ideas can be glimpsed. It helps that more investors begin to bet on Bitcoin and, above all, it helps that large platforms such as PayPal begin to trust and operate with cryptocurrencies.