It has been almost three years to the day that the price of Bitcoin was on the verge of breaking the $ 20,000 cap and came crashing down. On Wednesday, the arbitrary milestone of the hodlers’ dreams was finally realized.
Bitcoin has crossed the $ 20,000 threshold this morning with a value up around 6% at the time of writing. Increases surveillance checks, bigger institutional investment, nations plan their own digital currencies, and a major integration with PayPal have all played a role in the resurgence of the cryptocurrency market, which has seen its value quadruple since March. There is also all this apocalyptic plague raging around the world that could lead some investors to think outside the box.
It is not a call for you or anyone else to go plunge your savings into Bitcoin for another wave. Again, the last time he approached that kind of high, he lost about 80% of its value within a year. Barron’s reports that Claude Erb, a respected market analyst known for his valuations of gold, recently calculated that a fair price for bitcoin at the moment is closer to $ 12,000. Is Erb right? Nobody knows.
Earlier this year, veteran cryptocurrency promoter John McAfee called Bitcoin “old, tired and worthless,” but it seems like it was just a dodge to break its promise to eat its own genitals if the coin’s price doesn’t hit $ 500,000 in 2020. In the world of cryptocurrency, everyone has their own motivations and plays their own games.