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Despite a sharp drop in value in early 2021, Bitcoin continued to benefit from a few stellar weeks of lag.
First, the market-leading crypto token hit a new high of $ 48,635 last month, following a huge, Elon Musk’s Tesla invest $ 1.5million (£ 1.1million) solidify.
This week, Bitcoin’s price rose again to $ 48,635 amid news of potential partnerships with financial giants MasterCard. Overall, the token saw its value climbs by more than 364% over one year, because it continues to disrupt traditional financial models and exceed the limits of the general consumer public.
But is Bitcoin really going to disrupt and arguably break the traditional financial mold, or will it exist forever on the fringes of the tax services industry?
Yesterday and Today – Bitcoin in the past 12 months
Interestingly, Bitcoin also had an exceptional 2020 despite the coronavirus pandemic, increasing nearly 300% during the year and outperforming the combined gold and Dow Jones index gains by a factor of 10 in the process.
Bitcoin also mirrored gold’s performance and trajectory through October of last year, leading some to speculate that the asset is emerging as a relative safe haven currency in times of turmoil. economic.
This is confirmed by the fact that Bitcoin is less sensitive to macroeconomic factors than other assets such as stocks and currencies, allowing it to avoid seismic losses as the traditional market depreciates.
As a result, Bitcoin has evolved in the minds of investors to be viewed as “ digital gold, ” eschewing its old categorization as a large speculative asset or just a cash alternative.
Of course, the coronavirus has also created a need for change and increased flexibility in the financial services space, with a number of established tax companies considering partnering with Bitcoin (and more recent third-generation blockchains) to create increasingly secure and scalable payment solutions.
Can Bitcoin Support This Growth?
Of course, critics will point out that this is Bitcoin’s third major price rally in its 11-year history, with the previous two resulting in huge fixes that impacted the entire market. cryptography.
This was especially evident in 2018, which saw Bitcoin hang 50% of its value after a bull run that saw it surpass $ 20,000 for the first in the previous 12 months.
However, there is no doubt that Bitcoin is a more stable and cohesive asset now, and one which holds increased value as a secure store of wealth. The technology behind the token has also evolved to offer increased functionality in recent times, which is why MasterCard has decided to integrate Bitcoin into its payment network until 2021.
It also increases the demand for Bitcoin as an investment option, as it is possible to trade and speculate on the asset through credited brokers and buy tokens to create a secure store of wealth.
With these points in mind, this latest Bitcoin price spike looks much more sustainable than previous iterations, especially with the asset finally set to break into the mainstream of consumers in 2021.