New York (AP) — Bitcoin showed record backlash on Wednesday, surpassing $ 66,000 for the first time in a wave of excitement about how to do it. Financial institutions are accepting more and more The rise of digital currencies.
Bitcoin was trading at $ 66,439, up 5.9%, after previously rising to $ 66,974.77 at 12:40 EST. After falling below $ 30,000 during the summer, it surged above the previous record set in April. So far, the highest price was close to $ 64,889, according to CoinDesk.
More companies, professional investors, and even the El Salvadorian government have surged as they bought Bitcoin, further expanding its foundation beyond the core of the original fanatics.
The latest converts entered the world of crypto on Tuesday. The first exchange-traded fund linked to Bitcoin It attracted a great deal of interest from investors. ProShares BitCoin Strategy ETF shares have changed 24.1 million times with an overwhelming debut. Wednesday was off to a good start with trading volumes exceeding 19.6 million within the first three hours of trading.
ETFs do not invest directly in Bitcoin. Instead, it invests in the Bitcoin-related futures market, but the industry sees ETFs as bringing a new class of investors. People with old-fashioned securities accounts can buy ETFs, for example, without opening a cryptocurrency trading account.
Investors are constantly looking for assets that fluctuate in price independently of everything else in their portfolio, which has led to a growing interest in Bitcoin. According to one school, Bitcoin can provide investors with protection from high inflation, and some fans consider Bitcoin to be similar to “digital gold,” but it’s long to back it up. There is no track record.
More enthusiastic fans say digital assets are just the future of finance, allowing transactions to avoid brokers and fees in currencies not found in any government.
However, cryptocurrencies are still far from beating everyone. Critics point out that they are not yet widely used as a payment method. They also criticize how much energy is being used by cryptosystems, which increases climate change emissions. On the other hand, the biggest threat is the scrutiny of all the regulations that shed light on it.
For example, China last month declared Bitcoin transactions illegal. US regulators aren’t very advanced, but the chairman of the US Securities and Exchange Commission says the crypto world doesn’t have enough protection for investors.
Cryptocurrencies are also famous for their rapid price fluctuations. When Bitcoin hit a record high last time, the price dropped in half in about three months.
Gilluria, a technology strategist at DA Davidson, said the main reason for this volatility is how wide the future potential of Bitcoin is.
On the one hand, if Bitcoin goes out of fashion, or if another cryptocurrency replaces it, Bitcoin can go to zero. On the other hand, it can take the role of the US dollar and other currencies and become “all money”. More people take the middle position, believing that Bitcoin is useful and worth some.
Luria said the “all money” scenario is only 1% likely to occur, which is a better chance than we saw five years ago.
“To make all the money, you have to carry a lot of people,” he said. And last year, as Bitcoin became a hit record and became more mainstream, many new people appeared in Bitcoin.
“The higher Bitcoin, the more self-fulfilling prophecy,” he said.
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Bitcoin exceeds $ 66,000 and sets a record as crypto becomes mainstream | Work
Source link Bitcoin exceeds $ 66,000 and sets a record as crypto becomes mainstream | Work