Economy

Bitcoin is going through the roof, currency has doubled in value in two months

Those who bought the digital currency at the beginning of 2020 even have a return of more than 300 percent. 2020 was a year of ups and downs. Under pressure from the first corona wave, the bitcoin price initially plummeted to below $ 5000. After that, the price rose. Especially from the autumn it went fast.

Bitcoin was launched in early 2009 and was only worth a few cents back then. Crypto coins often had a shady image for years. Because they allow for anonymous payments, they are also a popular tool for money laundering by criminals and other malicious people.

Paypal

Meanwhile, more and more large well-respected companies are seeing the currency and it is slowly becoming commonplace. For example, PayPal will facilitate payments at online stores in cryptocurrency.

According to the large investment bank JP Morgan, the increasing interest from large investors means that more money is being invested in crypto coins. In August, asset manager Fidelity announced the launch of a Bitcoin mutual fund.

Several tech companies, such as Square Inc, have converted some of their cash reserves into Bitcoin.

In addition, the dollar is doing poorly and the government debt in several countries is rising due to the support packages from the governments. Investors are afraid of inflation and the crypto coin seems like a good alternative.

Other cryptocurrency such as the Litecoin, Ethereum, XRP have also appreciated in value in recent months. The coins can be bought for the fraction of the value of the Bitcoin and are bought and traded en masse.

Future

The question is whether the coins will not fall sharply in value again later this year. Central banks such as the ECB (European Central Bank) and the US Fed are studying their own digital currencies. They do not want to leave the initiative to companies such as Facebook, which has plans for the libra, which has now been renamed diem.

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