Bitcoin price broke $50000 for the first time, up more than 74% this year

The US media reported on February 18 that the price of bitcoin broke through the $50000 mark for the first time on Tuesday, doubling in less than two months. According to the website of the Wall Street Journal on February 16, the trading price of the digital currency was once as high as US $50584.84, up about 5% in a single day and more than 74% this year, according to the data from bitcoin counter. The total market value of bitcoin in circulation rose to $940 billion. After that, bitcoin fell back from its high level to close at $48642.45, up 0.95%. Brian Melville, head of strategy at Cumberland, a supply and demand imbalance trader, said $50000 was “the psychological gateway for market people.”. But it’s also a simple result of supply and demand, he said. He estimates that from August to December last year, about 150000 new bitcoins were dug up. The company estimates that about 359000 bitcoins were purchased over the same period, and that the imbalance between supply and demand will continue in 2021. “This is a very important indicator,” he said The report pointed out that this purchase demand not only led to the rise in the price of bitcoin, but also made people more and more accept and recognize this asset which was once the object of ridicule by regulators and legislators. In February alone, Bank of New York Mellon said it would start treating bitcoin like other financial assets. MasterCard said it would incorporate bitcoin into its payment network this year. In addition, Tesla Motors said it had purchased the $1.5 billion cryptocurrency and plans to start accepting bitcoin as a payment method for its products. In addition, billionaire investors such as Paul Tudor Jones and Stanley druckerenmiller also joined in, making bitcoin attract more attention. Interest from financial professionals – investors and institutions – has been the main driver of bitcoin’s rise. More financial services companies are now allowing customers to trade bitcoin, including Robin Hood’s popular trading app and squill’s platform, the report said. Last year, PayPal said it would allow cryptocurrency transactions. But skeptics say bitcoin is largely a game of speculation by investors chasing high returns in the fast money era. As prices rise, investors have flocked to the bitcoin market in recent months. Although companies like Tesla have recently allowed bitcoin as a payment method, many financial executives remain skeptical about investing in bitcoin because of its volatility and lack of practical use. Technology frontier bitcoin is created by a process called “mining”: people use powerful computers to solve complex mathematical problems to unlock or mine new coins. According to the original design of this cryptocurrency, the number of bitcoin protocols is limited to 21 million. Bitcoin itself can be almost infinitely divided to eight decimal places. Caitlin Lang, founder of Avanti bank, which specializes in cryptocurrency, said bitcoin was nothing more than an anarchic plan in its first few years. That has changed. “Right now, bitcoin is still avant-garde, still at the forefront of technological development, but it’s mainstream now,” she said Melville said increased demand from retail and institutional investors has led to an imbalance between supply and demand for bitcoin, which has pushed up prices. Bitcoin was launched in 2008 and officially launched in January 2009, according to the report. The real identity of its creator is still unknown. Bitcoin was conceived as a digital version of physical cash, which quickly attracted a group of programmers, anarchists and libertarians. The early history of bitcoin is a mixture of hope and scandal. It is seen as a solution to problems ranging from inflation to poverty to government oppression. However, its trading community is full of various frauds and Ponzi schemes. Most of the early exchanges, especially the high-profile Cox hill company, went bankrupt for various reasons. Around 2013, Silicon Valley and a new group of entrepreneurs began to invest in real money to create financial services that would make bitcoin more stable. Many of the biggest companies in the industry were born out of this effort. Speculation? Critics say bitcoin is not so much a currency as a speculation, and its price may be partly caused by manipulation. Nouriel Roubini, an economist and outspoken critic of bitcoin, said that most commodities, even gold, have some use, but bitcoin has little practical use and cannot generate stable income like bond or stock dividends. “A lot of people are buying bitcoin at ridiculous prices,” he said. They will burn themselves, and once they are hit hard, they will be hard to turn over. ” Christina Lagarde, the president of the European Central Bank, is a bitcoin skeptic. Bitcoin is not a real currency and the ECB will not buy or hold it, she said in a recent interview. In recent months, she has called for stronger regulation of cryptocurrencies, pointing out that they are used to launder money. According to the report, to some extent, this concern is reasonable. According to a report by chain analysis, the total amount of illegal activities using cryptocurrency will be about $10 billion in 2020. However, this figure is lower than the $20 billion in 2019. In any case, bitcoin continues to attract new attention. Miami mayor Francis Suarez said on Thursday that the city is exploring the use of bitcoin, which could pave the way for city employees to receive part of their income in the form of bitcoin and residents to use the digital currency to pay fees and taxes.

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