Bitcoin has never been traded for such astronomical sums. Excluding last December and January this year, this virtual currency had the highest value at the end of 2017, when one coin traded at a peak for $ 20,410 (CZK 438,210). But then came a sharp fall to less than $ 4,000 (CZK 85,880).
–
Over the past two years, exchange rates have fluctuated widely, but still held around thousands of dollars. At the beginning of 2020, the exchange rate was only $ 7,291, ie CZK 156,540.
–
During the last year, however, despite smaller or larger fluctuations, the value had a constantly rising tendency, until at the beginning of December it again exceeded the 20,000 mark. In the past four weeks, one record after another fell, until on Saturday afternoon the value climbed to a record $ 31,509 (CZK 676,500).
–
Is it a bubble?
Many analysts have described the great fall at the end of 2017 as a bubble reminiscent of the infamous tulip crisis of the mid-17th century. There are also rumors this year that a sharp fall must come, as the CNBC server pointed out.
–
“Let’s just say that bitcoin is in a bubble now, but once it bursts, its price never drops below $ 10,000 apiece. Up to this amount, it is a safe haven. Above this amount is the effect of ‘hot’ and ‘stupid money’, which by their nature is more volatile than long-term, ‘smart money’. Above the price of $ 10,000 per piece, bitcoin thus becomes an extremely risky, highly speculative asset, which is much more driven speculatively and by the psychology of an inexperienced crowd than by fundamentals and real value, “stated economist Lukáš Kovanda.
–
“If we are really seeing another big bubble on the bictoin now, the crucial question is not only at what level the bubble will burst, but also where the price will then fall. If past collapse is a guide, it will still be significantly higher than the lows after the last collapse, ie significantly – probably three times – above the level of five thousand dollars, “added Kovanda, who is also in the team of the National Economic Council of the government (NERV).
–
It is necessary to emphasize that virtual currencies do not have a single price, they are traded on stock exchanges and exchange offices depending on volatility. Differences in prices can vary even in the order of several thousand crowns.
–
Bitcoins and other virtual currencies
There are many virtual currencies. One of the oldest and currently the most popular are the so-called bitcoins. They were created in 2009, but have enjoyed greater popularity in recent years. This currency was designed so that it could not be influenced by any government or central bank.
Cyber coins are “minting” a network of computers with specialized software programmed to release new coins at a steady but declining pace. The number of coins in circulation is expected to reach 21 million in the end, which is to be around 2140.
——
