Bitcoin is hitting record highs, again.
After a couple of big crashes that destroyed billions in value, the digital currency has broken record after a record in the last two months, crossing $38,000. The cause: a flurry of developments that suggest Bitcoin has taken some big steps toward going mainstream. In October, global payments giant PayPal Holdings Inc. started permitting its customers to buy and sell Bitcoin and other cryptocurrencies from their accounts. A number of tech companies, including payments player Square Inc., have begun holding portions of their cash reserves in Bitcoin. And in August, Fidelity Investments, the asset management firm with $3.3 trillion in assets, announced the launch of its first Bitcoin mutual fund.
Every year there are more signs that crypto is becoming a viable new asset class. Hot startups such as Robinhood and Revolut make crypto a key part of their trading and banking apps. Fidelity Investments CEO Abigail Johnson and Ark Investment Management CEO Catherine Wood have introduced popular funds that let investors add crypto to their portfolios. Meanwhile, a number of central banks, including the Federal Reserve and the European Central Bank, are studying how to digitalize their own sovereign currencies, a validation of the blockchain code underpinning Bitcoin.
As crypto stages its comeback investors will be casting a more sober eye on its fortunes. The hope is that the industry is entering a more mature phase less susceptible to hype and speculation (and crime).
With stalwarts like PayPal and Fidelity now in the picture, more investors may look on crypto as a valuable complement to stocks, bonds and commodities. One thing is for sure — with pandemic-induced lockdowns forcing people to shop online the shift to cashless societies is picking up steam, and that may bode well for digital money in whatever form it takes.
Whether or not you’ve heard of Bitcoin, it’s a word and a concept that is not going anywhere. There is a reason why the most prestigious university endowments, such as those affiliated with Harvard, Stanford, and MIT, all invest in crypto funds.
Crypto is building in credibility. If for no other reason than curiosity, investigate Bitcoin and digital assets and see what everyone is talking about. After all, crypto will keep going while we are locked in our homes—a surefire sign that, pandemic or not, crypto is a huge part of our future.
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This post was written by jeffaltadmin