It seems that recently cryptocurrency news has been running rampant, and today is no exception. Just after setting a previous record earlier this week at just over €39,000, bitcoin has finally passed the €40,000 mark in a pretty big way. For those unaware as to what bitcoin even is and what the hype is about, bitcoin and other cryptocurrencies are essentially computer code that hold value and are able to be exchanged to accepting merchants and held in a virtual wallet. Since its origin, it has been widely subject to skepticism, as the value of it is hard to determine and many merchants are still hesitant to even call it a valid currency over just an asset or risky investment. Nevertheless, this is a big deal for many people and here’s why.
The value of not just bitcoin, but many other cryptos such as Ether, have been skyrocketing as of late. Bitcoin ended the year at around €24,000 and jumped all the way to approximately €33,000 in just a week’s time. The most obvious culprit for this surge is Tesla CEO Elon Musk, who as of last week purchased just over €1.2 billion in bitcoin and announced plans that Tesla plans to accept the crypto as payment in the near future. Mastercard was also among those to hop on the trend making the statement that they will start to slowly allow customers and merchants to transact in cryptos, but only specific ones approved to be safe and well regulated. However not all companies are as eager to support bitcoin as currency just yet as Adyen said that they have no plans to support bitcoin transactions despite supporting the idea back in 2015.
As far as investors in bitcoin are considered, it has been cautioned that they should be wary of this sudden boost in value as bitcoin is known to go through continuous cycles of booms and busts over its lifetime. Just as it had decreased in value around 30% last month, the same can be true very soon as all this news of bitcoin acceptance has most likely got many intrigued in buying some for themselves.
The crypto, and specifically bitcoin, trend is all very exciting but also daunting news. If you are considering investing in it or even using it to make transactions based on this current buzz, it’s strongly recommended you contact a financial advisor for sound advice on the situation. Afterall, with someone like Elon Musk having such a large influence on the price of bitcoin, and even a meme crypto dubbed “Dogecoin”, there’s really no telling as to what the future holds for this mostly adolescent market.