Bitcoin Price News: Cryptocurrency bitcoin breached the $29,000 mark on Thursday, December 31, for the first time ever, scaling a new record for its exponential 2020 rally. The digital currency almost quadrupled in value last year amid greater interest from investors. The virtual cryptocurrency touched $29,300 before pulling back, most recently up 0.46 per cent at $29,063.7. Bitcoin has surged by almost half since breaking the $20,000 record for the first time on December 16, 2020. The cryptocurrency’s potential for quick gains and expectations of it becoming a mainstream payment mode has attracted a huge demand from larger US investors as well as from traders who usually stick to equities. (Also Read: Bitcoin Outperforms With All-Time High Record, Breaches $28,600 Mark )
Recent gains have pushed bitcoin’s market capitalisation past $536 billion, according to the industry website CoinMarketCap. The virtual currency has registered an uptrend that began in October 2020, after US-based online payments company PayPal allowed its customers to use bitcoin on its network. Almost quadrupling in value, it surged exponentially since entering a four-digit value for the first time in the year 2013. Fuelled by demand for riskier assets, it rallied more than 130 in 2020.
It has a reputation for being inflation-proof. In 2020, the digital currency outperformed attracting momentum from higher demand for riskier assets following the central bank stimulus measures, in order to tackle the COVID-19 impact. Many important central banks in the world are exploring the possibilities to allow the issuance of virtual currencies. Bitcoin’s journey has witnessed several ups and downs ever since its launch as it been plagued with controversies. Bitcoin is still not recognised as legal by many central banks.
Similar to any other real-world currency, a bitcoin is the equivalent of cash, but in electronic form. It gives its holder a direct claim on the central bank, bypassing the commercial banks, and offering a greater level of security as a central bank can never run out of the currency that it issues.