The price of bitcoin just keeps shooting up, up, up. Thus, it looks like 2020 is shaping out to be one hell of a year in many ways. The currency – which just a day or so ago was trading for around $16,800 – has just shot up another $1,000, and the currency is now trading for well over $17,700, the highest it’s been in a long time.
Bitcoin Just Continues to Shoot North
It’s been mentioned that bitcoin could potentially hit its all-time high of roughly $20,000 by the time we’re ready to say hello to 2021. Well, granted the currency decides to keep up this kind of momentum, there’s no doubt in true believers’ heads that the asset will assuredly reach this level. The fact is that the appetite for bitcoin is still powering through the walls and barricades of the financial industry.
With positive COVID tests now expanding to even greater heights, it’s no wonder that bitcoin is doing so well. It’s likely people are looking to purchase even more BTC units and add to their portfolios.
Nikolaos Panigirtzoglou – an analyst at JPMorgan – commented on the present crisis and explained further how it’s potentially affecting people’s attitudes towards bitcoin. He states:
The virus crisis is propagating the reassessment of bitcoin. There is a reassessment about its value here as an alternative currency, as an alternative to gold.
The fact is that the dollar is still weak and in a state of recovery given how much it’s been bruised by the present economic conditions, and people are looking to bitcoin as a sort of saving grace. In addition, the asset is also being purchased by large companies such as MicroStrategy and Square, both of which have bought millions of dollars-worth of bitcoin in the last few months.
This is making a lot of people more confident in the coin. They see it as something that should be taken seriously. If many large firms are looking to purchase the asset, they should likely follow suit.
Still, however, bitcoin is having difficulty exiting the speculative space. At the end of the day, the asset – like all cryptocurrencies – was designed to serve as a payment tool. Something that the underbanked or financially independent could utilize to get their fingers on the supplies, goods and services they needed to remain stable in modern society. However, bitcoin has not quite permeated the walls of this ideology, and many investors say that this will ultimately hold the coin back.
Can We Use It for Anything?
Russ Mould – investment director at AJ Bell – comments:
The ultimate endorsement of crypto is whether you can buy your groceries with it and pay taxes with it. That would be the ultimate acceptance.
Bitcoin is not quite there yet, unfortunately, but with the relationships its forging with enterprises like PayPal, perhaps that day is closer than we think.