Bitcoin reached its 12th anniversary on the last Sunday, 3rd January, 2021. On the occasion of its anniversary, Bitcoin reached a new height of success by breaking through $34,000 mark. Due to the increasing interest from financial institutions, Bitcoin has been constantly rising on the charts.
There are speculations that it might replace the dollar as an international medium of payment.
Bitcoin’s value continued to increase in the year 2020 and started 2021 by surging to new heights at an hourly interval. Within three weeks of its first-time trading above $20,000, Bitcoin crossed the mark of $30,000.
On its Twelfth anniversary, Bitcoin’s charts went as high as $34,800 on Sunday.
The current rapid surge in the value of Bitcoin feels more like a déjà vu from 2017. In 2017 Bitcoin surged from about $1000 but stopped just over $19,000. However, by the end of 2018 Bitcoin slowly and gradually started to go down and reached a value of $4,000.
The 2020 surge came from the growing interest of institutions in Bitcoin- which re-emerged as the best asset class for investment purposes. It was also believed that Bitcoin was going to replace gold as an entity for storing and securing investment. In the words of the majority of crypto experts, Bitcoin has already outperformed gold.
CTO of one of the top crypto exchanges “Bitfinex”, Paolo Ardoino, said that the future of crypto-investors is looking very bright. He stated that the charts were constantly on the rise and the crypto industry was never been so bullish before.
Russ Mould of AJ Bell said that if governments didn’t stop gaining debts then none can stop gold and Bitcoin. He further added that the central banks would need to manage their loans better and should consider interest free lending. Mould also believed that both, gold and Bitcoin, have intrinsic values even though they do not generate cash.
Bitcoin also saw a rapid surge last year when PayPal allowed its customers to buy/sell Bitcoin etc. through its network. Analysts said that the current surge may also be because of the reason as PayPal had been buying newly created coins. This would mean that creating a shortage of Bitcoins in the market will boost the surge further.