The early months of 2021 saw a tremendous increase in the value of Bitcoin, one of the best-known cryptocurrencies today.
On Tuesday, the bitcoin price rose to the above U.S. $50,000, which presents the highest value the cryptocurrency ever had.
Even though Coin Metrics showed that it fell to the U.S. $48,952 hours after the record, the overall increasing trend of the Bitcoin price encourages those who remained confident in the cryptocurrency during its tumultuous history.
It was all ups and downs for Bitcoin, however…
Since its introduction in 2009, Bitcoin experienced intermittent periods of ups and downs.
The highest surge before the current one occurred in December 2017, when one Bitcoin could have been bought for nearly U.S. $20,000.
Unfortunately, the cryptocurrency lost almost 80 percent of its value during 2018, eventually managing to recover in 2019.
The record from 2017 was broken in late November 2020, and ever since the cryptocurrency only kept rising.
From the current perspective, the Bitcoin price from previous years seems inconceivable.
Big companies started investing in Crypto
Electric car company Tesla is seen as a major culprit for the new growth of Bitcoin.
On February 8th, the company announced that it had purchased U.S. $1.5 billion worth of Bitcoin as part of its plan to maximize the profits by diversification of its investments.
The company also said that it is ready to accept Bitcoin as a payment method for its services.
Moreover, Tesla founder Elon Musk has recently vigorously tweeted in favor of cryptocurrencies.
He defined Bitcoin as ‘his safe word’ and expressed support for Dogecoin, saying that he wants to make it ‘the Internet currency’.
Musk even added the hashtag #bitcoin to his Twitter bio, which is seen as a move that prompted a 20 percent increase in the value of Bitcoin.
However, Tesla is not the only company that opted to support the famous cryptocurrency.
While Mastercard announced that it would permit the use of some cryptocurrencies on its platform, BNY Mellon, the well-known investment banking company, said it would start offering assistance with the Bitcoin operations of its clients.
There are some indications that giants such as Morgan Stanley and JP Morgan will either invest or otherwise support Bitcoin. According to JP Morgan Co-President Daniel Pinto, it is only a matter of time when the market demand will necessitate his company’s involvement with Bitcoin.
All these moves suggest that Bitcoin is on the verge of entering the mainstream. Sergey Nazarov, a Co-Founder of Chainlink, told Business Insider that the events of Bitcoin surpassing the U.S. $50,000 threshold and Tesla’s investment signal that the process of the normalization of Bitcoin is underway.
Sumit Gupta, who is a Co-Founder of the CoinDCX cryptocurrency exchange company, hinted that companies such as Samsung Pay and Google Pay could enter the cryptocurrency market via BitPay.
He also underscored that the recent events might lead to an introduction of new Bitcoin-related products. This, along with the continuation of the involvement of both small and institutional investors, is expected to lead to the further growth of Bitcoin.