As the first cryptocurrency invented in 2009, Bitcoin definitely is one of the most essential discoveries of 21. century. At some point, Bitcoin remains a mystery to this day, just like the person who made it and hid behind the pseudonym Satoshi Nakamoto. This virtual currency’s value is continually changing, seemingly without any particular rule, but one thing is sure- it’s growing day by day. It’s complicated, almost impossible to predict what will happen to it within the next two days, several months, or even years. But, people still want to know the story behind its massive rise in December 2020.
How Did It Start?
At the beginning of 2020, Bitcoin was underestimated by wealthy people under the pretext that it has no value at all. Investing in this cryptocurrency was a waste of time. Suddenly, its value began to grow, and in December, it reached a peak- more than $28,000. Thanks to the blockchain eCommerce technology, it was evident that this virtual currency might change finance forever. It would be great to look at the growth of Bitcoin chronologically:
- In January, there were some speculations about whether the U.S. dollar could survive as the world’s dominant currency for international payments. The dollar seemed to be definitely the most stable currency. Until then, almost no one had invested in cryptocurrencies, but it didn’t take too long for the opinion about Bitcoin to change. After many geopolitical riots in the first few weeks in January, as a result, there was a greater demand for cryptocurrencies. Suddenly, Bitcoin jumped to $7,300.
- The coronavirus hit the global economy in March, and it seems to be a problem in the crypto market, but it was nothing compared to Wall Street. One day, on March 12, Bitcoin went down to $3,850. With stocks in upheaval, global authorities were taking action to keep the financial system from freezing up. The response came quickly, with billions of dollars pumped into markets by the Bank of Japan and the European Central Bank. By the end of October, Bitcoin reached $10,800.
What Happened In December?
Blockchain network continued its growth, and many new customers wanted to invest. On the other side, the dollar was weakening, and there was a sign that central banks and the government would curtail the flow of money soon. At that moment, Bitcoin doubled its price. Then, something changed drastically: some big corporations and money managers started to pile into virtual currencies. They shifted millions of dollars into Bitcoin. Then, PayPal and other payment companies allowed customers to hold Bitcoin and other virtual currencies and use digital assets to shop. On December 16, it reached a new price record, $23,000, and a few days later, $28,085. The one thing was sure- Bitcoin became a mainstream global investment.
Conclusion
Looking behind, Bitcoin was one of the bright spots in the year of the pandemic. The global economy suffered a lot, given all the events in March, but a virtual currency’s growth was just one step towards a completely different future. Cryptocurrencies are here to stay. What do you think will happen next?