Cryptocurrency bitcoin’s value has reached a new record level by shooting past the $34,000 mark on Sunday.
Although, the BBC reported that the value shrunk back below the $33,000 mark on Sunday.
The rise has been attributed to big investors seeking quick profits. Moreover, bitcoin’s rise over the last year has also been attributed to it being seen as a safe, valuable and rare alternative asset in a similar way to gold.
The precious metal is often equated to being a safe investment, particularly through troubling times such as the market uncertainty brought on by Covid-19.
However, while the value of bitcoin jumped by about 300% in 2020 and rival cryptocurrency ethereum increased by 465% in that period, cryptocurrencies have proven to be volatile.
Although, some investors have been calmed by the fact that more established companies have recently embraced bitcoin.
For instance, PayPal announced in October that its American customers could from then on trade cryptocurrencies like bitcoin directly on the app. Several other FinTech companies like challenger bank Revolut offer similar services.
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