Bitcoin is on the rise once again as it appears consumers start to have confidence in it again as the UK enters another deep recession. The value of the cryptocurrency increased by 3% over the last 24 hours, therefore taking its overall value up to $12,000 for the first time in over a year. Although there was a small decrease at one point, it seems there is still confidence by followers. Indeed, the virtual currency is well short of the $20,000 high it managed to hit in 2017, however there are encouraging signs that give it hope that it will continue to increase.
Of course, users and followers of bitcoin will know that the virtual currency has a finite supply, with just 21 million bitcoins being possible to be mined, therefore making it extremely similar to gold. Because of the way it is structured, inflationary measures such as quantitative easing have no affect on it.
It’s quite possible that investors are seeing the cryptocurrency (along with other such digital currencies) as a kind of safety net in the turbulent times that have been created by the coronavirus pandemic sweeping the world. Cryptocurrency is so versatile, that online casino players can use the virtual currency for when they place wagers and bets – including those sourced from bonus.ca.
“Inflation is currently low but real yields are across the board negative — negative real yields and the monetary stimulus/spending has driven investors to seek out inflation hedges such as gold,” Seamus Donoghue, vice president of sales and business development at METACO, told Bloomberg.
“Given its limited supply and growing institutional acceptance, Bitcoin will also likely benefit from the market seeking inflation hedges.”
Indeed, there is certainly a market for the cryptocurrency as well, with Google trends data revealing highs in searches worldwide. “Buy Crypto” has exploded in the past few weeks and has been recorded at a two-year high, whilst “buy Bitcoin” searches have continued to jump since July, despite suffering a decrease prior to 2020.
According to Google trends, “buy crypto” searches reached an all-time high rather unexpectedly during the price increase of late 2017 and early 2018. As the market was exploding with double and even triple-digit price pumps daily, retail investors displayed a massive interest in the field.
However, as all cryptocurrencies went into a year-long bear market where prices fell by 95% on some occasions, so did Google searches. They picked up during the mid-2019s but dropped back down as the market cooled off. In the past few weeks, though, the trend has reversed.
Galaxy Digital, set up by millionaire investor Mike Novogratz, ran a large block ad on Aug. 13 in the United Kingdom-based business newspaper the Financial Times. The publication had over 1 million subscribers in 2019, with an estimated 18% of its readership being millionaires.
MicroStrategy, considered to be the largest business intelligence firm in the world, also clearly have confidence in the cryptocurrency as they made headlines recently as they invested $250 million directly into Bitcoin.