Bitcoin soars past $33,000! Bitcoin soars past $33,000 after flirting with $30,000 for the past few weeks. Bitcoin hits a new all time high.
Bitcoin has tripled in value during 2020, growing steadily even as the stock market plunged into recession territory in the early days of the pandemic. As the US dollar has weakened, investors have been drawn to cryptocurrencies throughout this year.
With the Federal Reserve expected to leave interest rates near zero for several years, Bitcoin and other cryptocurrencies may win new fans, hesitant and fearful of inflation.
Rick Rieder is one of those new fans – he said that digital currency could replace Gold as a reserve against inflation. PayPal has embraced Bitcoin as well, after years of hesitancy and reluctance.
Bitcoin has seen dizzying growth before – the most well known example was the run up in 2017, when it hit a then-record high of just over $20,000. It crashed to just over $3,000 by early 2019, a period known as the Crypto Winter.
Despite bitcoin and other cryptocurrencies becoming accepted by more and more mainstream players, the currency is still used by fraudsters, giving it negative attention. In July of 2020, hackers took over Twitter accounts belonging to Musk, Gates, and others in an apparent effort to earn income by scamming people out of crypto.
Once you send crypto, it is notoriously difficult, if not outright impossible, for it to be returned after losing it in a scam, as there is no central authority. Decentralization is one of the reasons why it’s such a favorite of scammers – the same decentralization is what attracts technophiles and investors alike, however. It will be interesting to see how Bitcoin and Crypto continues to evolve and be accepted in 2021.
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