The week could not have been better for the crypto community. With digital assets gaining importance, bitcoins have also seen an impressive increase in value. Overall, the dollar price increased by 2.5 percent during this trading week. Even so, it was still a slight decrease from the recent height of $13,400.
Last week, Bitcoin dropped by 4% in a matter of twenty-four hours in value. However, the stock market analysts are still positive that the cryptocurrency will advance towards $20,000. They estimated that this growth will take place by early March. However, for this value to grow, several factors will have to go right for Bitcoin. One such factor includes banks following PayPal’s suit and accepting cryptocurrency. Another factor includes the federal government releasing the second round stimulus package to combat COVID-19 hit declining economy. Last but not the least, the hash rate and its pattern will also affect Bitcoin’s future.
Stock market experts also anticipate volatility sometime this month. The market will reach its $750 M expiry date later this month, which is when the BTC market will be the most volatile. Meanwhile, huge numbers of bitcoin are being exchanged. Just recently, a whale moved bitcoins with an appropriate value of $1billion.
Is Bitcoin The Digital Gold?
Even if we are not sure about it, many experts have claimed that bitcoins are, in fact, digital gold.
Recently, Morgan Creek Digital co-founder, Anthony Pompliano, said that the stock market volatility would not affect the tremendous growth of bitcoin. He believed that this cryptocurrency has become an investor’s safe haven. Even Mike Novogratz thinks the same way. He went so far as to call bitcoins the digital gold.
One thing to note is that experts do not believe that digital currencies will be widely used as money at least for the next 5 years. However, they say that bitcoins are excellent to store monetary value. It also looks like the fame of bitcoins has negatively affected other digital currencies. Unlike bitcoins, other altcoins have not been doing so well. For instance, Ethereum hasn’t been able to catch up with Bitcoin, despite the growing popularity of cryptocurrencies since the pandemic.
How Have Companies Profited From Digital Currency Investment?
One of the biggest success stories on cryptocurrency investment is the story of MicroStrategy. The company earned over $100 million from its investments in bitcoin. The crazy news is that the profit from bitcoin investment is more than what the company made through its actual business.
Currently, the company is under the US DOJ’s investigation. They are looking at MicroStrategy’s acquisition of a fintech company called Plaid.
The US government is also investigating several social media companies. Some of them are Twitter, Google, and Facebook.