By Oisin Sweeney • 01 December 2020 • 21:38
BITCOIN investors rejoiced today as the crypto-currency reached a new record value of just below 20 thousand dollars.
The digital currency, which has been growing in popularity and controversy in recent months, peaked in value at $19,920.53 per ‘coin’, or roughly 16,528.06 euro. It has taken three years for Bitcoin to pass its previous record in 2017, which was just $137 lower than today’s figure.
The currency has soared in value by 170% since January, with many analysts attributing this to its perceived stability as a ‘safe-haven asset’ against a world economy in turmoil from the global pandemic. However, finance writer Frances Coppola has warned that ‘Bitcoin is a speculative asset and has a history of sudden crashes’. Even after today’s peak, its value has since sunk below $18,000.
Its rise has led more mainstream investors to the cryptocurrency market, which was previously treated with greater skepticism. Guggenheim Partners, a major Wall Street firm, has expressed an interest in splashing over half a billion dollars into a Bitcoin investment fund. The ability of PayPal users to now trade the currency on the popular platform has also led to a spike in interest and demand.
Rhian Lewis, author of the Cryptocurrency Revolution, says that this new rise in value ‘feels very different from the 2017 high – there seems to be more demand and the narrative is more measured’. She said that ‘barely a day goes past’ without a major fund or company expressing an interest in Bitcoin, though conceded that ‘price predictions are notorious for being wrong, so it’s entirely likely that there will be more dips and volatility’.
Frances Coppola warns potential investors lured by the positive projections that ‘borrowing to invest in Bitcoin is a bad idea unless you’re a professional trader’ and that ‘It’s not worth risking your house or your life savings’ on the volatile crypto market.
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Oisin is an Irish writer based in Seville, the sunny capital of Andalucia. After starting his working life as a bookseller, he moved into journalism and cut his teeth as a reporter at one of Ireland's biggest news websites. Since joining Euro Weekly News in November, he has enjoyed covering the latest stories from Seville, Spain and further afield - with special interests in crime, cybersecurity, and European politics. Anyone who can pronounce his name first try gets a free cerveza...
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