Bitcoin rose above $ 51,000 today, Wednesday, to a new record, continuing a rally fueled by indications that the world’s largest cryptocurrency is gaining acceptance among major investors.
Bitcoin reached a new peak estimated at 51,259 dollars, up 4.2% today, according to Reuters.
The cryptocurrency has increased by more than 72% since the beginning of this year, up from 28.8 thousand dollars per unit at the end of the 2020 sessions.
Most of its gains were achieved after electric car maker Tesla announced that it had bought $ 1.5 billion worth of digital currency, and Tesla added that it would also accept payment in that currency.
Notwithstanding, Tesla is just the most recent in a progression of enormous scope speculation activities that have bounced Bitcoin from negligible financing tasks to corporate asset reports and exchanging workplaces on Wall Street, as traditional companies and money managers in the United States have begun to buy this currency at high value.
And last week, Twitter chief Jack Dorsey and hip-hop mogul Jay Z announced plans to create a Bitcoin fund together.
Prior to that, MasterCard had pledged to accept cryptocurrencies in its payments network, and said it was in contact with central banks working on their own digital currencies.
Last October, the electronic payment giant PayPal launched a “purchase and payment” service in cryptocurrency, while the “square” payment services company announced that it had invested $ 50 million in Bitcoin.
Canadian and American organizations have attempted ineffectively lately to dispatch comparable assets for Bitcoin.
The quantity of exchanged units of the most well-known virtual cash in the worldwide market until Thursday arrived at 18 million and 624 thousand units out of 21 million, which is the complete number of units ready to move and course.
The number of encrypted digital currencies around the world is about 4493, with a market value of more than 1.380 trillion dollars.
Bitcoin holds the largest share of it, 62.6%, at a value of nearly $ 900 billion.
Tesla CEO Elon Musk considered owning Bitcoin as slightly better than holding traditional cash, but this slight difference makes it a better asset to own.
Musk also defended his company, Tesla, to invest in Bitcoin, and said that the difference from cash made it a suitable adventure for the company – included in the S&P 500 – to acquire the cryptocurrency.
Tesla’s purchase of 1.5 billion Bitcoin pushed the cryptocurrency to a record high this week above $ 50,000, while Musk’s recent promotion of Dogecoin pushed the price of this cryptocurrency higher.
Bitcoin settled just below a record high of $ 51,284 on Friday.
Is it digital gold?
Bitcoin’s performance undoubtedly lures heavy New York investors. With the digital currency reaching more than 51 thousand dollars on Thursday, it will have reached 5 times what it was a year ago, while the value of all Bitcoin currencies created since its launch in 2008 is about one thousand billion dollars (trillion dollars).
On the other hand, researcher Matteo Bovar of the Faculty of Economics in Toulouse said, “They are very volatile assets, which is risky, but at the same time, 10 years have passed since we said that Bitcoin will collapse and it is still there.”