Bitcoin price is rising regardless coronavirus outbreak
Bitcoin price has reached a mark of $10.000 which can mostly be explained by an effort of investors to find a safe haven amid the recent outbreak of coronavirus that has seriously affected many companies as in Asia, so as in other regions.
On Sunday, Bitcoin was traded at $10,335 on the bitcoin and cryptocurrency exchange based in Luxembourg – Bitstamp. That marked a high price for a 10-year-old cryptocurrency that has experienced struggles back in December 2018, when it hit a low of $3,196.
As trading in the cryptocurrency implies certain risks and is by its nature very volatile, even after its latest bull run, Bitcoin is far behind its all-time high of $20,000.
While many agree that coronavirus which has received an official name Covid-19 is the primary factor of the Bitcoin price surge, others believe that it is actually the upcoming Bitcoin ‘halving event’ in May that influenced the coin price. Meaning that miners will have twice as less coins available for mining than they were. The same happened back in 2016, which also resulted in price doubling and surging to a record high in the following year.
Russ Mould, the investment director at AJ Bell said:
“If bitcoin keeps going, this could well rekindle the debates as to whether bitcoin is money. That in turn fuels discussion over whether it is worthy of consideration as investment as part of a balanced portfolio.”
The cryptocurrency, especially Bitcoin, has a great potential to become a widely accepted alternative for traditional payment means like credit cards.
However, at the same time, experts are concerned that a wide adoption of Bitcoin can lead to serious consequences that users might not understand yet.
Russ Mould also added:
“The case for considering bitcoin to be money is that cryptocurrencies are money as they facilitate transactions over time and distance and represent a trusted medium (at least by some), just as cowrie shells, cows, metal, slips of paper and plastic cards have since time immemorial. [But] unless bitcoin can be used to buy groceries or pay taxes, they have limited use and thus value, no matter how many you have, goes the argument.”