“Bitcoin briefly climbed above the $16,000 mark on Thursday, hitting a level not seen since early January 2018,” CNBC writes.
Remind me again, what is Bitcoin? It’s the world’s best-known and most-valuable cryptocurrency (a digital asset designed to work as a medium of exchange). Bitcoin has surged in 2020, more than doubling in price and rallying similar to 2017 when it closed in on the $20,000 mark.
The cryptocurrency peaked at $16,019 around 5 a.m. ET this morning, according to CoinDesk. Just over three hours later, it was $15,845.
Why Bitcoin surged wasn’t immediately apparent. CoinDesk data says the last time it was this high was Jan. 8, 2018.
However, it’s become abundantly clear that several companies “appear to be warming to crypto.”
- Last month, PayPal announced new features to trade bitcoin, ether, bitcoin cash and litecoin. Early next year, the company plans to let users shop its network of 26 million retailers using crypto.
- Square, which is run by Twitter CEO Jack Dorsey and has “long offered crypto services to users of its popular Cash app,” announced it had bought $50 million of bitcoin last month.
So, why is Bitcoin surging so much? Some crypto fans say it could be the “unprecedented wave of stimulus from governments and central banks around the world aimed at tackling the coronavirus crisis. Such measures, they say, devalues fiat currencies, making bitcoin an attractive alternative.”
It’s good to see that I wasn’t crazy in the summer for saying that Bitcoin was my inflation hedge going forward. I do not doubt that Bitcoin will crash in the future, but I am hopeful that we see new highs of well over $20,000 before the next “crypto winter.” Two steps forward, one step back on this asset. Hold for a decade.