Bitcoin breached the USD20,000 level for the first time in history. Then 10 days later, it broke through USD 25,000, and then, with barely taking a breath, it crossed USD 30,000. Now only a few days into 2021, the price of bitcoin has crossed USD 40,000.
Nothing's new with the digital currency in the month since it crossed USD 20,000 - there's been no major change in how it can be used. Although some investors are now using the notoriously volatile currency as a "store of value," which is traditionally a title saved for safe haven investments like gold and other precious metals. "Will you be able to buy a cup of coffee with bitcoin?
Probably not with the current version of Bitcoin. It's largely become a store of value," said Mike Venuto, a co-portfolio manager of the Amplify Transformational Data Sharing ETF, a USD 391 million exchanged-traded fund that focuses on blockchain technologies and companies that deal with cryptocurrencies. Media attention to its rise has only added fuel to the rally. But investors in digital currencies and companies that trade or "mine" them are warning people to be skeptical of Bitcoin's recent rise and to be braced for a lot of volatility. It's been a wild ride for bitcoin the last three years.
Bitcoin pips USD29,000 Levels, Quadruples In 2020