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Thursday, December 2, 2021

Bitcoin reaches record high of $20,000

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On Wednesday, For the first time, virtual currency Bitcoin traded above $20,000. It is worth noting that the cryptocurrency has sustained its high run in the past weeks.

In the 12th year of its launch, Bitcoin traded at a record -high of $20,398.50. After that, it pulled back to $20,145. But, it was still an intraday gain of a close 4% for the virtual currency giant.

Since March, the Bitcoin has seen a swift rise, as it stood at 5000USD. One of the reasons for this dramatic rise is the push provided by online payments giant PayPal. In one of its statement, PayPal said it would allow account holders to use cryptocurrency.

Meanwhile, banks have observed the rise of cryptocurrencies and the decreasing global use of cash. Furthermore, many federal banks have announced plans for bank-backed digital units.

Federal banks of China, Sweden even the US Federal Reserve are testing digital applications. One of the reasons for these sudden announcements and testings might be the social media giant Facebook. It is already known that Facebook is planning to launch its own cryptocurrency, Libra.

Central banks do not govern cryptocurrencies. Therefore, making Bitcoin an attractive option for investors with the desire for exotic appeal. Besides that, criminals are also under-the-radar for using digital currencies.

In the meantime, a debate has started over the status of digital currency.
How to treat cryptocurrency? As a form of money, asset, or commodity has come out as a question, which needs an answer from governments.

Launched in 2008, Bitcoin surpassed $1000 in 2013. After that, it has grabbed the attention of many financial firms. Also, experiencing wild swings in value.

Also read: Gold prices, the fluctuations explained

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