Is Bitcoin the New Gold?
All time records
Bitcoin’s value hit an all-time high today, trading above $ 68,000 on Tuesday morning – and investors predict its surge is not over yet, reports CNBC.
The price settled back to around $ 66,700 at the time of writing, but the appetite for Bitcoin is still great and investors are more excited than ever about the near-term future of cryptocurrency. However – as we have seen many times before – it is impossible to predict when exactly the bitcoin sauce train will run out of breath and start to sink again.
The new gold
Analysts suggest that soaring inflation caused by stimulus programs and government spending could be behind the rise in Bitcoin and other cryptocurrencies, including ether.
With inflation, “the value of money will decrease over time, while Bitcoin has a fixed limit on the number of coins that can be created,” Susannah Streeter of financial services company Hargreaves Lansdown told The Evening Standard.
In other words, investors are starting to treat Bitcoin like gold, an inflation hedge that allows them to hold in value over the long term.
“Inflation is an important issue for investors today, and the younger generation of investors often prefer cryptocurrencies as a hedge against gold,” Wilfred Daye, head of the Securitize Capital trading platform, told The Guardian.
Wall Street also expects the trend to continue, with JPMorgan doubling its prediction that Bitcoin will eventually soar to a whopping $ 146,000, according to CNBC.
Upgrades
Not only financiers are enthusiastic. Twitter CEO Jack Dorsey called during a call to investors last week that Bitcoin was the “home currency for the Internet”.
The digital currency will also get its first upgrade in four years, called taproot. The technology enables transactions to achieve a new level of privacy and efficiency and lays the foundation for the “smart contracts” popularized by Ethereum.
How much leeway there is still for the value of Bitcoin remains to be seen. However, with inflation expected to continue to rise, the digital currency could continue to rise in the coming months.
CONTINUE READING: Bitcoin hits a new all-time high of over $ 68,000 as cryptocurrencies expand their rally [CNBC]
More about Bitcoin: Bitcoin hits the highest price in its entire history
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