Bitcoin has doubled investor wealth in 2020 — and industry insiders say there's more to come
Bitcoinhas smashed past the $20,000 mark for the first time, doubling in value since the beginning of 2020.
- Bitcoin has seen growing interest and participation from renowned global investors, including billionaire Alan Howard and insurance giant MassMutual.
- Industry insiders believe there’s more to come in this bully rally in the cryptocurrency.
- Payment giants Visa, MasterCard, and PayPal have also thrown their weight behind Bitcoin, leading to a boost in investor confidence.
- Check out the latest news and updates on Business Insider.
AdvertisementBitcoin has gone past the crucial $20,000 barrier for the first time, setting a new record in the cryptocurrency’s history. The latest breakout in Bitcoin comes after it was hovering around the $20,000 mark for the last one month.
Since the beginning of 2020, Bitcoin has doubled in value – it has increased from $11,100 in the beginning of this year to $22,000 as of December 17, and there are two more weeks left this year.
That is a 100% increase in Bitcoin’s value, making it an increasingly lucrative option for a lot of investors.
At the time of writing this story, 1 Bitcoin was valued at over $22,000, which is another crucial range for the cryptocurrency. Industry insiders believe there’s more to come.
“The more respected companies that join the BTC rally, the more reputable and wanted of an asset it becomes. Not to mention, those large buyers created somewhat of a shortage in Bitcoin liquidity. The price is only going upwards from this,” said Ray Youssef, co-founder and CEO of Paxful.
“This time BTC has not just revisited $20,000 but has gone ahead to rally beyond $22,000. We are noticing more and more BTC (Bitcoin) leaving exchanges across the world, 19% more transfer than the 2017 price increase, which is a signal that investors are holding BTC as long-term investments,” said Vikram Subburaj, co-founder and CEO of Giottus Cryptocurrency Exchange.
Investor backing has helped Bitcoin double its value in 2020
The rally in Bitcoin is not just because of a demand-supply gap. Industry sources believe Bitcoin investments from renowned global investors has also stoked the bull rally.
Sumit Gupta, CEO and co-founder of CoinDCX said, “Bitcoin breaking above $20,000 is a milestone in a year which saw numerous ups and downs in the global economy. This is mainly due to numerous global renowned investors, institutions putting their weight behind Bitcoin.”
Some of the big names investing in Bitcoin recently include billionaire Alan Howard-backed One River Asset Management, insurance giant MassMutual, Ruffer Investment, among others.
“With more players joining the bandwagon we will be noticing more price increases in the days to come,” Subburaj further added.
Alan Howard’s firm is eyeing holdings to the tune of $1 billion in Bitcoin and Ether by 2021.
Bringing Bitcoin to the masses
Payment giants like Visa, MasterCard, PayPal and even Square have thrown their weight behind Bitcoin and other cryptocurrencies. MasterCard has invested in Bitcoin company Digital Currency Group, while Visa has launched a credit card that rewards purchases in Bitcoin.
PayPal has announced that it will allow users to buy and sell cryptocurrencies, giving Bitcoin a big push to the masses.
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An incoming Senator believes bitcoin is a better store of value than paper money and plans to teach Congress how to use it to reduce the national debt
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