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The cost of bitcoin at the auction on February 16 reached a record high of 50 thousand dollars. Half a year ago, the cryptocurrency was worth about 11 thousand dollars. Since that time, its value has increased by 350%.
The rapid growth of quotations began in the fall of 2020. Back in October, Bitcoin was worth about $ 11,000, and in December, its value exceeded $ 20,000. In January, quotes exceeded $ 40,000.
After that, bitcoin’s cost returned to the level of 33 thousand dollars, but in February, there was a recent jump in the rate. The auction was influenced by the news that the car manufacturer Tesla has invested $ 1.5 billion in bitcoin and will accept cryptocurrency as payment.
How Bitcoin grew in price during the coronavirus?
Bitcoin began to rise noticeably in March 2020 after the outbreak of the coronavirus pandemic. In connection with the coronavirus’s spread, the governments of various countries have introduced restrictive measures, which led to a slowdown in business activity.
The US and EU have decided to stimulate their economies with additional spending. Many investors believe that massive stimulus measures will weaken the euro and dollar. There are also fears that an increase in money supply will lead to an acceleration in inflation. Against the backdrop of these concerns, investments in bitcoins have increased, the supply of which is limited.
Also, experts and investors expect the use of cryptocurrencies in the traditional financial system to increase. The decisions of individual companies indicate this. For example, earlier payment services Square and PayPal, which about 300 million people in total use, added the ability to buy cryptocurrencies to their applications.
The previous maximum of quotations was recorded in December 2017, when the cost of bitcoin was approaching the $ 20 thousand mark. Then the quotes rose sharply in a few weeks, and then there was a collapse, and in a few months, bitcoin fell in price to 3.2 thousand dollars.
However, the current growth is different from what happened in 2017. At that time, the cryptocurrency was bought mainly by private investors from Asia, and now institutional investors and large companies, mainly from the USA and Europe, participate in trading.
Some experts still consider bitcoin as a “bubble,” the value of which will collapse sooner or later. Even investors anticipating the growth of quotes warn that cryptocurrency trading remains exceptionally volatile, and sharp price fluctuations should be expected.
However, questions remain as to whether cryptocurrencies have any value. Some experts fear that investments in bitcoin and its analogs may be lost.