The Outpour of Bitcoin Continues, Market Cap Hits 1 Trillion

Bitcoin in physical form

As it soared to yet another record level on Friday, Bitcoin reached a market capitalization of US$1 trillion, dismissing investor concerns that this is a “economic complement piece” and a poor hedge against a decline in stock prices.

As it reached the new mark, Bitcoin traded at just below $54,000 per coin this Friday, and climbed beyond $55,000 later in the session, as per Coin Metrics. Over the past six months, the value of bitcoin now has risen around 350%. Bitcoin has never exchanged over $20,000 until the massive uptick.

The astonishing 12 month run can be visualized below.

https://www.barchart.com/crypto/quotes/%5EBTCUSD/performance

After Bitcoin soared to this record high, The CEO of Tesla, Elon Musk, said that the prices “seem high”. This is after him earlier converting some of his balance sheet money into bitcoin and said Tesla would begin accepting digital tokens as payment.

Tweet from Elon Musk about Bitcoin price being too high

“Money is just data that allows us to avoid the inconvenience of barter,” he stated. “That data, like all data, is subject to latency & error. The system will evolve to that which minimizes both.”

On a possible landmark moment for both the crypto-currency and ETF industries, the first exchange-traded fund tracking Bitcoin in North America started trading in Toronto on Thursday. Buyers purchasing the Bitcoin ETF can now do so with $BTCC.B, the Canadian dollar denominated trades, alongside the American dollar denominated edition, $BTCC.U.

Although the surge continues, Bitcoin has strongly bisected the financial world. There are still a number of analysts who see this is a useless currency that is going to collapse again.

Nouriel Roubini, an economist for NYE, expressed his thoughts on how he believes bitcoin “is a bubble.”

“Fundamentally, bitcoin is not a currency. It’s not a unit of account, it’s not a scalable means of payment, and it’s not a stable store of value.” He went on to say that “The Flintstones had a better monetary system than bitcoin.”

Other analysts aren’t too fetched off from this, as they agree that widespread acceptance raises the association of bitcoin with assets, that rise or fall with economic changes, thereby decreasing the incentives of expanding into cryptography.

Will the bull run continue? If so for how long? With some analysts expressing this isn’t a certified currency and it will collapse, alongside others who are very optimistic, who do you believe is right?

Let us know!

Written by: Ali Malik

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