Bitcoin surpasses $ 20,000 for the first time in its history

Is it safe to invest in cryptocurrencies? The impossible dream of bitcoin

The bitcoin has known the 20,000 dollars for the first time in its history, taking advantage of the markets’ appetite for risk, which has tripled its highly speculative value in one year.

The first cryptocurrency decentralized came to cost 20,612.40 dollars, with which it tripled its price since the beginning of the year, moments after having reached a historical maximum at 20.787,35 according to data from the Bloomberg agency.

Since the beginning of the year the bitcoin has risen close to 190%, driven by the interest of traditional investors who were suspicious before this cryptocurrency.

But the price really started to skyrocket at the end of October due to the launch of a buying, selling and paying service for cryptocurrency from the payment giant Paypal. Since then this cryptocurrency has earned more than 40%

Although this service is intended for individuals, this decision ended up granting the cryptocurrency a form of respectability before investment funds, which are now increasingly interested in this asset.

Until not long ago these funds ignored bitcoin due to its high volatility and sharp price movements.

“The use of bitcoin by traditional investors it is just beginning, “warn JPMorgan analysts.

Other reputable Wall Street banks, such as Citi, have also started to follow the stock price. cryptocurrency.

No dependency

Many followers of bitcoin consider that their interest lies in its decentralization: this cryptocurrency, invented in 2008 by a network of anonymous, does not depend on any institution.

However the bitcoin it has already experienced other spectacular increases, but also dizzying falls.

But the cryptocurrency proposes a more modern alternative than gold against the dollar, which is now at very low levels due to the monetary easing measures of the central banks to reactivate the economies, affected by the covid-19 pandemic.

However, other market players incite caution: “the last time the price of bitcoin it shot up, then fell back down quickly “recalls Laith Khalaf |, an analyst at AJ Bell, who advises investors, impressed by the results of bitcoin in 2020, to “invest small sums that one can afford to lose.”

In 2017, bitcoin it had started the year under $ 1,000, and then its price skyrocketed over the months, especially between mid-November and mid-December, when it quadrupled in less than a month.

After reaching a high of $ 19,511 on December 18, prices fell throughout 2018, ending at just over $ 3,000.

This volatility explains why – although the bitcoin interests investors – its use as a means of payment remains limited.