Last year had been really astounding for Bitcoin in terms of value increase. Bitcoin rose from the value of approximately $3,900 apiece and broke all previous records of its high price. With the entrance of retail investors in 2017 Bitcoin saw huge surges in its value, rising near to $20,000 apiece. However, by the end of 2020 Bitcoin had surged over $29,000.
With its Twelfth anniversary on January 3rd, 2021 Bitcoin finally surged over $32,000 per coin in value. It was a huge breakpoint for Bitcoin and market analysts were really optimistic about its future. Speculations in the market were that it might go close to the $35,000 mark in a matter of few days. Bitcoin proved everyone wrong and went as high as almost touching $42,000 price mark.
During this phase, huge investments were made by institutional elements and companies like MicroStrategy and MassMutual entered the crypto trade. Along with other institutions these companies purchased a large number of Bitcoin against to dumping US$. CEO and Founder of Metal Pay, Marshal Hayner said that Bitcoin has entered the next phase of adoption in the trade market. He believed that Bitcoin is now in the acceptance phase of the trade market.
Hayner said that Bitcoin has reached its all-time high in such a short time with great meteoric rises. He said as the oldest and most traded cryptocurrency Bitcoin has gained a hedge over fiat currencies like US$ and Euro. He said that Bitcoin is now in its fourth wave of adoption waves. Exuberance, speculation, utility were the previous three waves of adoption and now Bitcoin is in a run for acceptance he added.
Bitcoin was officially launched on January 3rd, 2009 with a price of nothing as compared to the US dollar. In 2010, a computer programmer Hanyecz paid around 10,000 Bitcoins for two pizzas that h ordered. Gradually Bitcoin rose in its value and achieved the milestones of $1, $10, $100, $1,000 and eventually $10,000 in value. Which Bitcoin’s popularity many other parties created numerous digital currencies which are now termed as alternate coins. However, none of them enjoy the status similar to that of Bitcoin in terms of market acceptability.
With its ability to secure value and hedge over the US dollar many institutional investors shifted their investments towards Bitcoin. MicroStrategy has disclosed that they have invested over $1 billion in Bitcoin. There are many other companies that have invested even more in the crypto trade leader.
PayPal announced in October 2020 its acceptance of cryptocurrencies as a mode of payment. Coins like Bitcoin, Ether, and Litecoin can now be used at PayPal to have funds secured.
Hayner stated that FinTech giants like PayPal including cryptocurrencies on the platform and the national level banks have accepted crypto. He said the acceptance by banks under the OCC signifies a huge step forward for acceptance of Bitcoin and crypto. National banks of US also received approval from the OCC to accept and utilize cryptocurrencies in their operations.
Hopes are high for digital currencies in 2021 and they are likely to become a normal entity in market. Crypto analysts are calling this year the year of crypto.