Bitcoin surpasses $20,000 to hit new high

(qlmbusinessnews.com via news.sky.com– Wed, 16th Dec 2020) London, Uk – –

The volatile cryptocurrency has risen by 170% over the year though sceptics dismiss speculation about a continued rally.

Bitcoin has hit a new all-time high at above $20,000 as the volatile cryptocurrency saw its latest surge in valuation.

It jumped 4.5% to as much as $20,440, news agency Reuters reported on Wednesday.

Bitcoin has gained more than 170% this year against a backdrop of wider market turmoil amid the coronavirus crisis.
The FCA argues that cryptocurrencies such as Bitcoin have no intrinsic value

It has been buoyed by demand from large investors keen on its potential for quick gains as well as expectations about it gaining more widespread traction as a payment method.

The rise of Bitcoin has coincided with a drop in gold – a traditional safe haven in times of volatility – in recent months.

But it has been a bumpy ride for investors, with the cryptocurrency passing $19,000 in November before dropping sharply.

A previously rally in 2017 saw it surpass $20,000, according to one valuation, before dropping by 80%.

Bitcoin is the most valuable and popular of a range of digital currencies and some have suggested it could pass $100,000 next year.

But others dismiss such predictions as outlandish.

Carney: Cryptocurrencies must be regulated

Different figures are given for the cryptocurrency's all-time high – depending on the exchanges that value it in dollar terms.

A $20,089 valuation reached in December 2017 is among those cited while others say today's rise was the first time it has breached the $20,000 mark.

Bank of England governor Andrew Bailey recently said he was “very nervous” about people using Bitcoin to make payments.

He has also warned that people who invest in the cryptocurrency should be prepared to “lose all their money”.

In October, the Financial Conduct Authority said crypto derivatives – financial products based on the price of Bitcoin and other cryptocurrencies – were to be banned from sale to retail consumers from next January.

It said consumers were at risk of “sudden and unexpected losses” from the investments – effectively bets on cryptocurrency prices – and that the ban would save them about £53m a year.

The FCA says cryptocurrencies have no intrinsic value.

But its supporters point out that Bitcoin is accepted by companies including Starbucks and Microsoft as a form of payment.

 

 

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