Cryptocurrency

Bitcoin keeps hitting new highs after Tesla backing.

Bitcoin keeps hitting new highs after Tesla backing
Bitcoin keeps hitting new highs after Tesla backing.

Much talked-about cryptocurrency Bitcoin has continued to hit record highs having broken through $50,000 (£35,700) last week.

On Sunday, Bitcoin hit another peak rising above $58,000 because it continues its strong momentum this year.

The cryptocurrency has risen quite 90% since the beginning of January, pushing its total market price above $1tn.

The recent spike has been fuelled by Tesla and other big companies accepting it as payment.

However, Bitcoin features a diary of untamed price swings and has fallen sharply variety of times since it had been created in 2009.
Bitcoin started the year at roughly $28,900, consistent with figures from cryptocurrency news site CoinDesk.

When it broke through the $40,000 mark in early January, it triggered a downward trend that saw it drop to around $30,000 by the top of the month.

However, having passed $50,000 on 16 February, it’s continued its upward momentum breaking through $58,000 on Sunday.

Going mainstream
The Bitcoin rally has been largely spurred on by well-known companies adopting it as a way of payment.

Elon Musk revealed last week his electric carmaker Tesla had bought $1.5bn worth of Bitcoin and would be accepting it as payment for its cars in future.

Mastercard also plans to simply accept Bitcoin as a sort of payment while BlackRock, the world’s largest asset manager, is exploring ways it can use the digital currency.

“Who’s next and what is going to tip (Bitcoin) over the sting and trigger subsequent surge?” said Craig Erlam, an analyst at New York-based foreign-exchange firm Oanda.

The Covid-19 pandemic has also played its part in Bitcoin’s price rise, as more people go browsing for shopping, moving further faraway from physical coins and notes.

But critics have argued Bitcoin is a smaller amount of a currency and more of a speculative trading tool that’s hospitable market manipulation.

Prominent economist and Bitcoin critic Nouriel Roubini has said it’s little or no practical use and doesn’t provide a gentle income sort of a bond or a share.
“Elon Musk could also be buying it but that does not mean everyone else should imitate ,” he tweeted recently.

Not for the faint-hearted
Novice investors still got to remember of the risks involved said Matt Dixon, founding father of cryptocurrency rating platform Evai.

Talking about January’s slide from $40,000 to $30,000 during a matter of weeks, he said: “Though undoubtedly panic-inducing for the uninitiated, this is not anything particularly remarkable for long-term holders.

“New investors got to ensure their hands remain steady to avoid any undue loss from Bitcoin’s regular shakeouts. The upside potential could also be vast, but the risks are often even as high.”

Kurt Wuckert may be a long-term Bitcoin investor having stumbled upon it in 2012, when he accepted it as payment for alittle side project.
“I agreed to simply accept the Bitcoins fully expecting them to be some quite computer game tokens or something, but decided to be cool about it. Then I need to reading about it online and doing my very own research.”

Since then, he has been regularly investing within the cryptocurrency and considers himself an “investor within the more proper sense”.

But he warns others to try to to their research first before jumping onto the Bitcoin rollercoaster.

“To today , I tell curious friends to line aside their beer money but not their rent money because it’s what I even have always done.”


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