It’s finally reached the pinnacle, folks. After months of waiting, bitcoin has shot beyond the $9,000 mark and is now trading for an impressive $9,039 at press time.
Bitcoin Is Firing on All Cylinders
While this is relatively small compared to where the world’s number one cryptocurrency has been in the past, it does represent a shift of sorts for BTC and solidifies the bull market that enthusiasts have been so excited about for the past few weeks.
BTC initially slumped to the mid-$7,000 range last November after it had spent the early part of that month traipsing through $9,000 territory. It had hovered throughout this region since late October, but ultimately failed to keep the momentum up. It dropped at the midway point of the following month and continued to endure small slumps through the end of the year.
At first, it looked like 2020 was going to continue this trend. A day after the New Year holiday, bitcoin was already falling to the high $6,000 range – the lowest it had been in some time – though a harsh political environment between east and west and bitcoin futures trading brought on by the CME Group in Chicago, Illinois ultimately gave bitcoin the push it needed to regain its footing.
It has been on a bullish path ever since, and today marks a solid jump forward in the continuation of that path.
However, not everyone is convinced that bitcoin’s power is true. Germany-based multinational bank Deutsche Bank has explained that bitcoin isn’t terribly reliable given that it’s still too vulnerable to wide price swings and volatility.
To an extent, even the most die-hard crypto fans can understand this sentiment. While bitcoin may have extraordinary power and can perform wonders for the world, one can’t help but notice that it can also rise and fall with ease at any moment.
In a new report, Deutsche Bank is advising everyone not necessarily to ignore bitcoin, but to always keep cash at the top where it allegedly belongs. The report suggests that BTC will never take over cash’s place in the financial space, and it would be wise for people to invest their money in wiser venues.
Not Everyone Is a Believer
This is the exact opposite of the sentiment offered by players such as Jack Dorsey of Twitter fame. In a recent interview, Dorsey claimed that bitcoin payments were likely to become as common as cash payments in the coming years, and that changes were necessary to provide it with a more common status.
By contrast, billionaire Ray Dalio seems to share the sentiment of Deutsche Bank and advises people to focus not so much on cash, but on gold, which in many arenas is considered just as strong and stable as cash during periods of economic turmoil.