Three years ago, the rapid rise in the value of bitcoin ended with the bursting of the bubble. Now it has almost reached its old peak.
Cryptocurrency the value of bitcoin has risen at such a pace in recent weeks that it is already alarming the record figures for the turn of the year 2017-2018.
The value of Bitcoin on Friday was 15,400 euros.
Three years ago, Bitcoin rose from the hobby of computer-oriented millennia to the pages of world financial magazines, as its value rose during 2017 from less than 1,000 euros to nearly 17,000 euros.
Then the value collapsed. A year later, the value of the virtual currency was only about 3,000 euros, and many interpreted it as last winter’s Lumia.
The new rise in Bitcoin has been extremely bumpy, but since October, the direction has remained sharply upward.
Many are seeing signs that Bitcoin is breaking into a range of new investor categories.
Even large institutional investors, according to industry publications, have begun to put slices of their assets in bitcoin, although there is no hard data on the significance of this phenomenon.
Bitcoin the rise has been supported this year by signals of wider acceptance.
In October, the payment giant Paypal began According to Bloomberg accept their customers’ Bitcoin purchases and sales.
American listed companies Square and Microstrategy said they have invested in bitcoin.
Fund and asset management giant Fidelity, meanwhile, said it will open its first Bitcoin fund. Fidelity also released data in the summer from a survey that found institutional investments in cryptocurrencies had become more common.
In addition, the President of the European Central Bank Christine Lagarde said the ECB was seriously considering the creation of a digital euro.
For large investors, the attractiveness of digital currencies may have been boosted by the widespread negative interest rates in Europe. Institutions have to pay banks to keep the traditional currency in their accounts.
In addition, the ultra-light monetary policy of central banks may destabilize the value of paper money in the eyes of some in the longer term.
Forbesin a well-known investor on the billionaire list and a well-known advocate of bitcoin Mike Novogratz said this week According to Business Insiderthat investors increasingly see bitcoin as a means of preserving value and no longer as a purely speculative investment product.
“People are joining bitcoin because no more than 20 million bitcoins are being mined. Scarcity is complete. People believe it is a store of value. ”
At least under the current structure, the supply of bitcoins is limited to 21 million units, of which about 18.5 million have already been mined.
Also director of asset management company Blackrock Rick Rieder said On CNBC believing that Bitcoin has come to stay.
“It’s hard to say if it’s worth its current price. But do I think it’s a sustainable system that takes the place of gold in a big way? I believe so, ”Rieder said.
Although cryptocurrencies have gained wider acceptance, they are still very unpredictable investments with high risk. Their value is not tied to any production, commodity, or debt, but is based entirely on the price at which other people are enthusiastic about buying them in the future.
Bitcoins have also been hacked and stolen and are generally not welcomed by government.