3 hours ago
Image Released, Reuters
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Bitcoin has increased in value over the past year
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The value of the digital currency Bitcoin rose to more than 34 thousand dollars, setting a new record for this leading cryptocurrency.
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The currency’s gains this year were estimated at about $ 5,000, although by 17:00 GMT, the price had fallen to about $ 33,000, according to the Coindesk website.
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The reason for the decline is due to the large investors seeking to reap quick profits.
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This comes after the value of Bitcoin rose by 300 percent last year, with the prices of many other digital currencies also rising sharply.
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Some analysts predict that the value of Bitcoin may rise further as the US dollar falls.
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While the value of the US currency rose last March with the beginning of the spread of the Coronavirus epidemic, as investors sought safety amid uncertainty, it has since decreased due to the great stimulus from the US Federal Reserve. The currency ended last year with its biggest annual loss since 2017.
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Bitcoin is traded in the same way as real currencies, such as the US dollar and the British pound.
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The digital currency has recently gained increasing support as a form of online payment, and the e-commerce site PayPal is among the newest users of digital currencies.
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But the cryptocurrency has also proven very volatile.
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The higher price sparked fears that Bitcoin might head for a dramatic price correction, as happened three years ago when the value collapsed after an upward wave.
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During the rally in 2017, Bitcoin came close to breaking the $ 20,000 barrier, only to hit its lowest levels and fall below $ 3,300.
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Bitcoin crossed the $ 19,000 mark in November of last year, before falling sharply again.
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And last October, Bank of England Governor Andrew Bailey warned against using Bitcoin as a method of payment.
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Bayley said, “I must be honest, it is difficult to see that Bitcoin possesses what we tend to call intrinsic value,” adding, “Perhaps its value was external, meaning that that value comes from people’s appetite for Bitcoin.”
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Bailey said he was “very concerned” about people using Bitcoin as a payment method, noting that investors should realize that its price is very volatile.
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