After the mad rise and its competition for gold, the safe haven, everything you need to know about the currency “Bitcoin”
Bitcoin electronic money recorded a significant drop in price in trading today, Sunday, which fell to below $ 38,000 after previously surpassing a point of $ 40,000.
Over the past few days, Bitcoin broke the $ 23,000 barrier, or more than 350,000 Egyptian pounds, for the first time in history, so annual currency earnings rose 200% and the price of the currency rose 12% in two days, as demand for bitcoin increased. This results from investors’ hedging against inflation, with the outbreak of the Corona virus, according to “CNBC”.
According to economic reports, Bitcoin has grown by around 200% since 2020, supported by demand from large investors, who have been drawn to the currency in hopes of making quick gains, and thanks to expectations that it will become a payment method widely used around the world. .
What is Bitcoin?
A decentralized digital currency based on blockchain or “blockchain” technology, and this system is characterized by the limited number of its currencies and the absence of a manager for it.
On January 5, investment bank JP Morgan released a report indicating that the “Bitcoin” currency has become a competitor to gold and could trade at levels up to $ 146 thousand if it is established as a safe investment asset.
With the passing of days and the increase in the spread of the Corona virus across the world, Bitcoin rose to the highest level in its history and exceeded twenty thousand dollars, and reached a time, which was explained by the increased demand from large investors attracted to the controversial currency.
Analysts explain bitcoin was distracted / but was boosted by big investors converting their assets into cryptocurrency, while tech companies like Square and MicroStrategy used their balance sheets to buy bitcoin.
“It’s the domino effect when asset managers turn their portfolios into bitcoin,” said Charles Hayter, CEO of CryptoCompare.
So, big Wall Street companies like S&P Global and Cboe Global Markets are taking a big step forward in crypto market data services, and S&P Dow Jones Indices recently announced plans to launch crypto indices in 2021.
An analyst from crypto consultancy Quantum Economics says that growing institutional interest in bitcoin has led to its growing boom, as the race to secure bitcoin continues in a market where supply is shrinking, and organizations that were looking to do so now realize that they will have to act quickly to secure it.