The price of bitcoin reached an all-time high of nearly $ 20,000 three years after the cryptocurrency last reached this level.
One bitcoin was worth $ 19,850.11 (£ 14,880) on Monday afternoon, according to CoinDesk, a Bitcoin price index. On Monday evening, its value fell to around $ 19,223.
Demand for bitcoin increased in November, with supporters citing increased interest from institutional investors in the digital asset, which was not invented until late 2008 by a still anonymous developer.
The cryptocurrency, which relies on a decentralized ledger, called a blockchain, to record and verify transactions, has suffered wild price swings throughout its short history, even though its fans insist it will turn the world upside down. traditional financial.
The last time bitcoin approached $ 20,000, in December 2017, it crashed dramatically, losing a quarter of its value in a single day before dropping well below the $ 4,000 mark in late 2018. However , this still represented a dramatic increase in value over prices measured in the hundreds of dollars in 2016, and only the cents in 2008.
In 2020, the value of the cryptocurrency increased by around 170%. On Monday, it only rose 6% but its price had risen by $ 2,000 since Friday, demonstrating its extreme volatility.
The invention of bitcoin sparked a host of imitators who hoped to gain strength in the financial world, as well as a host of get-rich-quick schemes. It has also caused significant environmental damage, with the computing power being used to “mine” new bitcoins by solving increasingly complex mathematical puzzles comparable to those of small countries.
Tyler Winklevoss, a venture capitalist who was the first publicly identified bitcoin billionaire along with his twin brother, wrote that he believed a single bitcoin could possibly be worth $ 500,000 as it plays a growing role in the system global financial. On Monday, Winklevoss tweeted: “Onward and up, we’re going to the moon!”
Edward Moya, senior market analyst at Oanda, a foreign exchange firm, said: “Bitcoin and all major altcoins are rallying strongly, and it looks like the momentum of commerce is building as mass media embraces crypto coverage. . ”