Bitcoin Keeps Rising! It Exceeded $ 23,000 and This Is the Coinbase CEO's Advice for Investing in Cryptocurrencies
Free Book Preview Money-Smart Solopreneur
Yesterday Wednesday, Bitcoin surpassed $ 20,000 for the first time in its history . Less than 24 hours later, the world's most popular cryptocurrency surpassed its own record and is now worth more than $ 23,000 per unit , it is unstoppable!
This Thursday, Bitcoin registered a gain of 10.5% , reaching 23,655 dollars (about 468,000 Mexican pesos). This represents a 220% increase in its value so far in 2020.
The rise of Bitcoin responds in large part to the demand of large investors , captivated by the possibility of obtaining quick profits. In addition, thanks to its limited supply of 21 million , it can be a good hedge against inflation risk .
On the other hand, there are expectations that in the not too distant future it will be a conventional form of payment. Last October, Paypal launched a cryptocurrency purchase, sale and payment service. There are still few companies that accept Bitcoin and the like in their transactions, but it is expected that as crypto markets improve their infrastructure, they will become more accessible.
"There will be a search for alternative currencies due to the constant degradation of fiat money ," Deutsche Bank analysts wrote in a note. "It feels like Bitcoin will continue to be in high demand ."
Expert advice for investing in cryptocurrencies
Created more than 10 years ago, cryptocurrencies generated a lot of mistrust in the beginning. In addition to the constant fluctuations in price, they were associated with criminal groups, hacks and operational failures. However, in recent years institutional and private investors have lost their fear and are increasingly betting on Bitcoin , Ethereum and other similar units.
If all this is convincing you to invest in cryptocurrencies , you should check the advice of Brian Armstrong, CEO of Coinbase, one of the largest cryptocurrency trading platforms.
This Wednesday, before the sudden rise of Bitcoin , Armstrong shared on his blog a post where he points out that he and his company have a "long-term view of the market ." However, he emphasizes that investing in cryptocurrencies "is not without risks ."
"While we are always excited to see the growing interest in cryptocurrencies, it is also important to note that this is not just a time of high volumes, but also of price volatility," wrote the Coinbase CEO . "The market can move in any direction much faster than the stock markets ."
The specialist alerted investors that they could be focusing on short-term speculation. He also encouraged his clients to "seek resources" and consult financial experts to gain a better understanding of the crypto market.
- See also: What business will be like in 2030