Bitcoin has quadrupled in value this year
Bitcoin has quadrupled in value this year

Bitcoin continued to rise at the end of the year, reaching a new high of over $ 28,500.

Today, Wednesday, the cryptocurrency rose more than 5% to $ 27,835, up 47% from early December, and experiencing the largest monthly increase since May 2019.

With growing interest from institutional investors, Bitcoin's value has nearly quadrupled this year.

With the depreciation of the US dollar and concerns that the massive government stimulus package brought about by the Coronavirus pandemic will fuel inflation, Bitcoin has become a more attractive investment.

In the basket of currencies, the dollar fell to its lowest level since April 2018 on Wednesday.

As investors move to higher risk-weighted assets, the US dollar is under pressure and a promise that a coronavirus vaccine will hit the market next year to fuel a strong economic recovery.

People expected Bitcoin to become the most popular payment method that fueled Bitcoin as well, and PayPal launched a cryptocurrency transaction service through its platform.

It is said to have bought nearly 70% of all new Bitcoin traded products, and some hedge fund managers this year announced that they have invested in this cryptocurrency.

Bitcoin is touted as an alternative to gold and traditional investment as a safe haven. Gold fell after hitting a record high of more than $ 2000 an ounce in August and is currently closing at $ 1,879 an ounce.

Some analysts predict that Bitcoin will have a competitive advantage over gold next year.

Paolo Arduino, chief technology officer at Bitfinex cryptocurrency exchange, said Bitcoin could attract audiences more than just fund managers.

He added: While the increased institutional influence is part of the current boom, we can see the increased retail interest in Bitcoin as a form of digital gold.

Other cryptocurrencies (such as ether) have also increased, but people are still concerned about the speculative nature of cryptocurrencies and there are regulatory issues.

The US Securities and Exchange Commission last week accused Ripple and its CEO of selling $ 1 billion in virtual tokens without registering for commission, making investors the third largest market misleading of the cryptocurrency XRP in the world.

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