Bitcoin continues to evolve, reaching $ 33,000 in value

Just weeks after breaking its longstanding aspiration to hit $ 20,000, Bitcoin is up to the task again. Saturday, the cryptocurrency passed $ 33,000 in value, according to CoinDesk, before dipping slightly throughout the day.

Bitcoin’s new gains represent a record high for the currency, an astonishing turnaround given its situation nearly a year ago. In March, Bitcoin lost 50% of its value in two days, dropping to less than $ 4,000, reflecting volatility on Wall Street during the early days of the pandemic. Nonetheless, the world’s leading cryptocurrency ended the year with an increase of over 300%, per CoinDesk. At the time of this blog posting, it had grown 10.62% in the past 24 hours and had a market cap of $ 605 billion.

Nevertheless, as we have said before, this is not intended to encourage one to go out and buy Bitcoin. (Since we are currently in a global health crisis, please do not use your hard earned savings to buy Bitcoin). Cryptocurrency is notoriously brooding, and in recent years has generated as much excitement as it has despair.

Case in point: in 2017, the last time Bitcoin reached a value close to $ 20,000, it lost more than 80% of its value the following year.

Bitcoin has undoubtedly benefited from increased scrutiny, such as the creation of the FICO cryptocurrency risk assessment solution for banks, as well as more investment and institutional support In November, the Guggenheim Macro Opportunities Fund announced that it could look to invest up to 10% of its net assets value in Bitcoin. PayPal also gave Bitcoin and other currencies a boost last year when it announced it would. accept cryptocurrency for online payments and also allow its users to buy, sell and hold crypto-currencies.

Other powerful investment players, such as Rick Rieder, director of global fixed income investments at BlackRock, the world’s largest asset manager, have said that Bitcoin is “here to stay” and that he had the potential to replace gold. Having said that, from November Rieder hadn’t added Bitcoin to any of his investment portfolios.

Bitcoin’s new record caused a stir, with some financial experts claiming it was on the way to increase even more. Other to disagree and say it’s way overpriced, maybe over 50%, and its true fair value is around $ 12,000.