One year ago, on January 10, 2020, Bitcoin was priced at $7,808. And it was recently as October that it was hovering in price around $11,000. But for many and almost out of the blue, the value of Bitcoin took off past the $41,000 mark to hit a new all-time high of $41,660 within the past day.
Bitcoin prices recovered from a multiyear slump in 2020. It breached its 2017 record near $20,000 in November, and it’s gone parabolic ever since, sitting well above $40,000 as of this publication.
The resilience of that digital coin and others – and the reasons behind it – have many excited not just about the prospects for this young asset class in 2021, but also for the general adoption of this burgeoning financial technology.
With a little help from the media, the general population has become wondering about the fascination women have for the brand new venture known as bitcoins. As a currency, it stands out among all others. The problem is that a lot of people still don’t understand how it works or just how to use it.
This growing macro case for bitcoin has vindicated long time bitcoin believers that have cheered the recent price explosion.
It’s not just one analyst of digital currencies who is exuberant about the potential for 2021 and providing a towering bitcon price prediction after a colossal year that saw soaring Bitcoin take center stage.
What may basically help to make this time different, however, is not that Bitcoin rates hit new highs in 2020 and finished the year with a mind of steam. It’s that the cryptocurrency succeeded in its first trial by fire.
What Is Bitcoin?
Let’s review the basics:
Bitcoin is one of many digital currencies. Unlike traditional “fiat” currencies created and operated by a government and central bank, Bitcoin is “mined,” or produced by those which solve mathematical problems with computing power. Transactions are kept on the blockchain, an encrypted and decentralized ledger which protects the integrity of Bitcoin while also ensuring the privacy of the user.
It was the birth of an entirely new financial paradigm.
As far as whether or not the costs are going to continue to increase is a little something that only you are able to decide. One thing is actually for certain though; the more investors that start trading the currency the more the value of the coins will increase.
Bitcoin More Than Survives In 2020
Bitcoin prices crashed after sharp rallies in 2013 and 2017, but these declines weren’t precipitated by any significant event spanning multiple asset classes. While it is possible for the prices to fall back down once again, you can find yourself being incredibly wealthy from this investment in case you wait it out long enough.
So the bear market of 2020, short as it was, marked the first time Bitcoin along with other digital currencies faced a truly global crisis which threatened numerous sorts of investments.
Bitcoin bounced quickly, as most of the huge institutional funds moved in once they saw how the bitcoin price continued to move higher.