Bitcoin continues to break records. During the week, cryptomoney crossed the symbolic $50,000 threshold. This Friday, thanks to a new surge in the price, the value of all Bitcoins created since 2009 exceeded $1 trillion. The market is mainly boosted by the enthusiasm of some large companies and despite the concerns of regulators. At around 5:40 pm, Bitcoin reached a new historical high of $54,790, up 5.5% over the session.
With more than 18.6 million bitcoins created since its launch in 2009 by anonymous companies, the whole market potentially represents 1,015 billion dollars, according to Coinmarketcap.com. Since the beginning of the year, the price of bitcoin has risen by 89%, a performance that has led some market players to fear that a bubble similar to that of 2017 could burst. On Friday, Elon Musk, whose company Tesla participated in the price hike by announcing that it had bought 1.5 billion dollars in bitcoin, defended his group’s decision on Twitter. « When the currency suffers from a negative interest rate, you’d have to be stupid not to look elsewhere, » he argued, adding that « Bitcoin is almost as bad as paper money, I stress ‘almost' ».
To be clear, I am *not* an investor, I am an engineer. I don’t even own any publicly traded stock besides Tesla.
However, when fiat currency has negative real interest, only a fool wouldn’t look elsewhere.
Bitcoin is almost as bs as fiat money. The key word is « almost ».
>> Also read – Bitcoin scam, banking is now banned
Businesses are jumping on the bandwagon
Bitcoin enthusiasts see the decentralized network, created by anonymous individuals in 2008, as a means of protecting themselves against the actions of central banks. In recent months, many financial companies have also shown interest in Bitcoin. From the online payment giant Paypal in October to the BlackRock investment fund mastodon at the end of January, via the oldest bank on Wall Street, BNY Mellon, many US financial players have announced that they are preparing to launch services to buy, sell or use encryption.
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But the insatiable growth of bitcoin is worrying market observers, who believe that with a price that has quintupled in one year, a sharp correction, or even the bursting of a bubble, is likely. « Musk’s tweets have changed everything in the last few weeks, we’re not dealing with rational buying, » says a crypto-broker who has asked to remain anonymous. Central banks, for their part, regularly criticise the cryptoskills, such as European Central Bank (ECB) president Christine Lagarde, who described Bitcoin as a « highly speculative asset » in February.
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