Today, Bitcoin recorded an all-time high value of over $50,000 for the first time ever. The highly in-demand cryptocurrency surges past the $50K milestone on the back of rising interest in digital currencies among established institutional investors on Wall Street.
The main aim of enabling people to carry their own unique digital wallets is to lessen reliance on currency notes that are susceptible to losing their value subject to a high inflation rate.
Another important function Bitcoin performs is that it eliminates the need for middlemen between buyers and sellers. This hands an average person complete control over undertaking economic transactions without the interference from potentially overbearing government regulators.
Bitcoin is at $50,000 and the government is about to flood the market with another $1.9 trillion.
I wonder what is going to happen next…
— Pomp 🌪 (@APompliano) February 16, 2021
— Bitcoin (@Bitcoin) February 16, 2021
The Bitcoin cryptocurrency rapid momentum gain comes in the wake of several companies announcing plans to diversify cash holdings in order to protect against a future cash-nominated asset value decline as a result of governments across the globe having to inject large amounts of money to rejuvenate their respective economies amid the COVID-19 pandemic.
Adopting Bitcoin as a cash replacement will allow businesses to use digital assets for investment purposes or as a payment method to charge customers.
Although Bitcoin has experienced several episodes of sharp dips following meteoric increases in the past, the favorable confluence of macro and micro indicators points in a different direction this time around. The most critical of propitious factors is the formal backing from established financial institutions and multinational companies.
That said, Bitcoin is not the only cryptocurrency but it is the most well-known. However, it remains unknown whether the euphoria surrounding the digital currency system will persist long into the future. Besides, it is far too early to convincingly predict the long-term viability as well as the practical utility of Bitcoin and other cash substitutes in everyday scenarios.