The rally in the crypto currency bitcoin has been very good so far this year and topped it up as the virtual currency hit another milestone as it rose by 8 per cent to reach an all-time high value of $19,800 on Monday.
That surpassed the previous highest for the crypto currency of $19,783 which it had attained in December of 2017.
With a growth in value of more than 175 per cent since the end of 2019 when the novel coronavirus pandemic started to engulf the world, the current year has been a wild one for bitcoin. For example in March, its price went well below the $4,000 mark with the plummeting of markets around the globe because of the economic crisis induced by the pandemic.
However over the past few months, there has been a sharp rally in the value of the bitcoin even as the value of the dollar weakened to an extent. And another important aspect that has also helped surge in the price of the bitcoin is the fast acceptance of the virtual currency in the mainstream of global finance.
Trading, buying and purchasing of bitcoin is now being allowed by both payments giants Square and PayPal. A bitcoin fund for wealthy investors is also being launched by money management giant Fidelity. Trading on the Chicago Mercantile Exchange is also being done by bitcoin futures contracts.
Bullish forecasts for bitcoin have also been given by some of the most prominent investment managers such as Paul Tudor Jones, Stanley Druckenmiller and Mike Novogratz. According to some analysts, 2020 also marks the year as the end of the days when bitcoin was considered to just be a fringe instrument for investment. The total value in US dollars of all the bitcoins that are currently in circulation all over the world is more than $365 billion.
One of the most noted strategists at the largest asset management firm of the world BlackRock had recently made suggestions that one day, gold could be replaced by bitcoin as a safe-haven currency of choice for investors, which has also been a big boost to this virtual currency.
(Adapted from CNN.com)