Bitcoin set a new record on Tuesday, surpassing $ 50,000 for the first time. It is a new record for cryptocurrency, which in the past 12 months has more than 10 times increased in value.
All-time high was reached during the afternoon session, when it touched $ 50,547.70. Then, it fell to $ 49,505.35, accumulating in any case a 2.7% increase in the session and more than 70% so far this year.
The rapid rise in prices is generating a fierce debate about the future of cryptocurrencies. While some observers are concerned about the volatility of this decentralized market, which is not dependent on any asset, others believe the situation is very different from 2017, when prices rose just as enthusiastically before the crash in early 2018.
“The increased interest of companies in cryptocurrencies has changed the market compared to 2017,” said Neil Wilson, analyst at Markets.com. Last week, electric car maker Tesla announced by surprise that it had invested $ 1.5 billion in bitcoin. The head of Tesla and the world’s richest man, Elon Musk, has no hesitation in glorifying the advantages of cryptocurrency on social networks.
Likewise, MicroStrategy, a US software company, announced a $ 600 million donation to buy the cryptocurrency, which some analysts have begun to consider the new digital gold.
The institutional adoption of cryptocurrencies began to accelerate in 2021 with numerous announcements from banking and financial groups increasingly interested in Bitcoin. Last week, the oldest bank on Wall Street, BNY Mellon, as well as MasterCard announced new projects in the cryptocurrency sector. The impact of these announcements on reputation is one of the factors that drive higher prices for these financial assets.
Many economists, despite the bitcoin buying craze, argue that this phenomenon is a bubble that will end up exploding sooner rather than later. They criticize the irrational energy use of the digital currency and that the decentralization proposed by Bitcoin does not actually materialize in practice, as most of the operations are ultimately performed through centralized platforms.