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Published image, Reuters
Bitcoin has appreciated in value over the past year
The value of the Bitcoin digital currency has risen to over $ 34,000, setting a new record for this leading cryptocurrency.
The currency’s gains this year have been estimated at around $ 5,000, although the price dropped by 5:00 p.m. GMT to around $ 33,000, according to the Coindesk website.
The reason for the decline is due to large investors looking to reap quick profits.
It comes after the value of Bitcoin rose 300% last year, with the prices of many other digital currencies rising sharply as well.
Some analysts predict that Bitcoin’s value could rise further as the US dollar depreciates.
As the value of the US dollar rose last March with the start of the spread of the coronavirus epidemic, as investors sought security under uncertainty, it has since declined due to the big boost from the Reserve federal government. The currency ended last year with its biggest annual loss since 2017.
Bitcoin is traded in the same way as real currencies, such as the US dollar and the British pound.
Digital currency has recently gained growing support as a form of online payment, and the e-commerce site PayPal is among the new users of digital currency.
But cryptocurrency has also proven to be very volatile.
The higher price raised fears that Bitcoin is heading for a dramatic price correction, as happened three years ago when the value collapsed after a surge to the rise.
During the 2017 rally, Bitcoin nearly crossed the $ 20,000 mark, hitting all-time low and falling below $ 3,300.
Bitcoin broke the $ 19,000 mark in November of last year, before falling sharply again.
And last October, the Governor of the Bank of England, Andrew Bailey, warned against the use of Bitcoin as a means of payment.
Bayley said: “I have to be honest, it’s hard to see that Bitcoin has what we tend to call intrinsic value,” adding: “Maybe its value was external, meaning that value came from people’s appetite for Bitcoin. “
Bailey said he was “very concerned” about people using Bitcoin as a payment method, noting that investors should realize that its price is very volatile.
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