Bitcoin Price Reaches New Record, Is Now Above $30,000

Bitcoin’s value has exceeded $30,000 (€22,000) at 13:13 GMT on Saturday for the first time in its history, going on with a sharp rise that started ending last year.

The virtual cryptocurrency soared above $20,000 for the first time in 2020. However, just weeks after, it hit $30,823.30.

Larger investors, who were looking for ways to generate quick profits, developed interest in Bitcoin in the past year.

Thanks to it, the Bitcoin value has almost quadrupled. Besides, some analysts predicted that it could rise even further as the US dollar plunges.

Investors sought safety alternatives to capitalize amid the uncertainty derived from the beginning of the coronavirus pandemic in March, making the US currency rise during the first quarter of 2020.

However, it has dropped since then due to significant stimulus from the US Federal Reserve. The currency has welcomed 2021 with the biggest annual loss since 2017.

Bitcoin is traded in a similar way as the US dollar, pound sterling, and other real currencies.

For the last few months, it has been gaining growing support as a form of payment online. Last year, PayPal decided to adopt digital currencies, prompting traders to rely on it.

However, it has also showed its volatile side, proving to be an unstable investment.

There was a rally three years ago that saw the Bitcoin value coming close to reach the record $20,000 level. But it also plunge to extreme lows, falling below $3,300 before.

Then, in November 2020, it passed $19,000. But it dropped sharply and suddenly again.

Andrew Bailey, Bank of England Governor, warned people over using Bitcoin as a payment method in October.

“I have to be honest, it is hard to see that Bitcoin has what we tend to call intrinsic value,” he said.

“It may have extrinsic value in the sense that people want it,” he added.

Mr. Baily finished saying that he was very nervous about people using the virtual currency for payments. He pointed out that investors should bear in mind that Bitcoin price is extremely volatile.