Bitcoin rises to yet another high point, reaches above $52,000
Although bitcoin has become mainstream this year, experts say it is still far from becoming a wide form of payment.
On Tuesday, Bitcoin passed the $50,000 hurdle and the next day it surged to yet another record high, even though analysts warned that such prices elevated volatility and the sustainability of such prices was not sure.
Bitcoin is the biggest digital currency, with a market capitalization of $900 billion, and hit the record value of $52,577.50. The rise was fuelled by signs such as becoming the mainstream mode for investors and companies, Tesla, Mastercard and BNY Mellon to name a few.
The currency saw an increase of 6.3% last time around when it was $52,233. Despite being mainstream this year, analysts and experts suggest that it is still quite far from becoming a mainstream mode of payment.
Bitcoin has risen eight-folds since March last year and has been able to add $700 billion to its market capitalization value since September. Although it has been very volatile for some time, with the positions of centralized banks, its attraction is based on macroeconomics.
Currently, 78% of the issued bitcoins are either lost or held with little intention to sell. Only 4 million coins are available to be shared among future market players. The coin’s three-month realized volatility of 87% versus 16% of gold pointing that it has already more than doubled relative to gold in risk capital volatility.