The value of the digital currency Bitcoin has stepped over the level of 17 thousand dollars, which is the maximum in the last two years. Apparently, the coronavirus crisis is beneficial for cryptocurrency. In Ukraine, there is still talk about the need to legalize digital money.
The cost of the world’s most popular cryptocurrency, Bitcoin, is breaking record after record. She has already crossed the $ 17,000 bar. This is the highest rate since January 7, 2018. In general, since the beginning of 2020, the price of Bitcoin has increased by 130%. To date, the total value of Bitcoin’s market capitalization has exceeded $ 315 billion.
However, it is worth recalling that international experts have repeatedly warned that this virtual segment of the financial market is a bubble. He can burst at any moment. So, in particular, it happened in 2017, when the cryptocurrency, approaching the mark of 20 thousand dollars, which is 15% more than its current value, fell below 14 thousand dollars, followed by a decline.
Bitcoin’s victorious march came to a halt after a warning from the Singapore Monetary Authority about the risks associated with investing in ICOs and cryptocurrencies. World financiers immediately recalled that digital money is not legal tender, is not issued by any of the governments and is not backed by assets. Speculations also played a role.
“You can’t do a business where the currency is taken out of thin air. It won’t end well … Bitcoin may be worth at least $ 20,000, but the problem will eventually ripen. This is a scam, and personally I am shocked that no one sees the real state of affairs, ”said James Dimon, chief executive officer of financial giant JPMorgan Chase at the time.
In his opinion, bitcoins are “worse than tulip bulbs” (in the 17th century, the excitement of demand for tulip bulbs in the Netherlands ended with a complete collapse of the business). But a number of experts believe: to prevent this from happening, you just need to regulate the cryptocurrency market at the state level.
The founder of the Kuna cryptocurrency exchange and the president of the Blockchain Ukraine Association, Mikhail Chobanyan, notes that there are no fundamental reasons for the current record growth in the value of Bitcoin, but there are long-term strategic reasons – the unstable situation in the world, both economic, political and geostrategic.
“People are trying to ‘escape’ into more secure assets. Where they can hedge risks from all volatility. And there are not so many such assets in the world. These are gold and cryptocurrencies. At the moment, this is a key aspect of Bitcoin’s growth. Plus, there are side factors, for example, the distribution of money in the United States and the European Union, the so-called unconditional basic income, which was wrapped in the form of assistance during the coronavirus crisis. Some of this money also poured into cryptocurrency platforms. In this way, they try to get rid of the traditional so-called fiat money and buy all kinds of assets that will survive the crisis more worthy, ”the expert noted.