Bitcoin’s growth sparks new dispute amid Coronavirus Pandemic
Bitcoin’s rally over $ 15,000 has again started the discussion on whether the cryptocurrency is nominal digital gold or a hazardous risky bet as investors struggle with the coronavirus pandemic.
In the last three weeks, the world's most favored virtual entity has obtained more than 30% in value in comparison to December 2017 highest record of $ 20,000. After the announcement of U.S. online payments provider PayPal enabling the account holders to use cryptocurrency, it began its latest spectacular rise on October 21.
In 2008, bitcoin was formed by pseudonymous Satoshi Nakamoto and was treated as a substitute for traditional currency. It was considered an attractive option for investors as it is not regulated by any central bank. It also attracted the attention of financial institutions after it exceeded $ 1000 for the first time in 2013.
PayPal declared that users would be allowed to buy and sell using bitcoin as well as other cryptocurrencies like Litecoin and Ethereum. The interest of central banks and consumers in digital currencies has increased. The migration from traditional currencies to digital currencies and payments continues to accelerate its value, driven by the coronavirus pandemic.
The European Central Bank and US Federal Reserve are carrying discussions on launching their own virtual currency. From April, China’s central bank has started exploring digital payments in four cities. Analysts have started comparing the cryptocurrency to gold after the announcement of PayPal. As an alternative currency, bitcoin could compete more fiercely with gold in the upcoming years.
As per the reports, it is noted that the total capital of the crypto market is 10 times lower than gold. On Thursday, bitcoin’s price was nearly 9 % and due to the impact of the US election, gold rallied 2.45%. The rise in values provoked new comparisons between the two assets.
Crypto Business World
CBW - External Analyst