Bitcoin hits $40,000 for first time, doubles in less than a month

Bitcoin hits $40,000 for first time, doubles in less than a month

Bitcoin has reportedly climbed above the $40,000 mark for the very first time in its history after doubling up its value in nearly less than a month.

The record jump came just days after the cryptocurrency hit the milestone of above $34,800 on a Sunday, which was also the 12th anniversary of the bitcoin network being formed. Bitcoin first broke the $20,000 mark in December mid.

The asset has become immensely popular with established institutional investors. Meanwhile, supporters say that it is beginning to replace gold as a store value.

Experts at the U.S-based investment bank JP Morgan stated that bitcoin could ultimately hit nearly $146,000 if it strengthens its reputation as a substitute to the valuable metal. The experts further stated that cryptocurrency was also becoming an alternative for investors who were looking for protection against inflation but have grown weary of the depreciating US dollar.  

Meanwhile, there are above 18m bitcoins, formed by the miners who give the computational power assisting the blockchain. The blockchain is known as a decentralized record of nearly all transactions made by using bitcoin which is preserved by a network of over thousands of computers around the globe. The system has hardwired almost 21m coins.

Some doubters have cautioned that the cryptoboom might be heading for some trouble and that the coin has no essential value of its own. However, chief market analyst, AvaTrade, Naeem Aslam, stated that cryptocurrency has continued to prove its detractors wrong.

Aslam added that a major price level has been topped and bitcoin has proved that no one would like to mess around with this asset class. Proving all the doubters wrong.

Continuing further, Aslam stated that the ones who got the rally going were the institutional traders. The upcoming crucial moment for the cryptocurrency would be when it breaks through the $50,000 mark.

Source credit: https://www.theguardian.com/technology/2021/jan/07/bitcoin-tops-40000-dollars-investors-seek-hedge-against-inflation