Bitcoin has risen above $60,000 for the first time, setting another record. Bitcoin, whose value has more than tripled since the end of last year, continues to be supported by well-known companies that adopt it as a payment method.
The rise is due to the US stimulus package
Some analysts, however, say the latest increase is partly due to the massive U.S. stimulus package approved this week. In addition, bitcoin’s total market value last month exceeded $1 trillion.
However, Bitcoin has an interesting history of price fluctuations and has fallen sharply several times since it was created in 2009. The latest rises were triggered by big companies, the BBC reported.
As you may recall, in February Elon Musk announced that electric car maker Tesla had purchased $1.5 billion worth of Bitcoins and would accept it as payment for his cars in the future.
Mastercard, on the other hand, plans to accept certain cryptocurrencies as a form of payment, while BlackRock, the world’s largest asset manager, is exploring ways to use the digital currency.
The Covid-19 pandemic also played a role in bitcoin’s price increase, as more people go online for shopping, moving away from physical coins and banknotes.
Critics argue that Bitcoin is a speculative trading tool that is less than a currency and open to market manipulation. There are also concerns about its environmental impact, as a large amount of energy is needed to process Bitcoin transactions.
Bitcoin is trading at $60,619 as of Sunday, March 14.