For the first time, Bitcoin touched the $1trillion market cap after a month that saw its value jump more than 60 percent.
The digital currency hit the mark when it touched $54,000 thanks to significant investments from firms like Mastercard, Tesla, and BNY Mellon.
According to Ava Trade’s chief analyst, Naeem Aslam, BTC touching the trillion-dollar mark is the most exciting news in 2021 for crypto lovers.
“This was long-awaited, and the truth is digital currencies are just ten times away from exceeding the gold market limit. This new cap shines a beam of hope on the sector and may not have been reached without smart money. The integration of payment avenues is a crucial driving factor for BTC’s increasing value, and we may see more interesting news.”
Most investors and market experts remain cynical of the less-controlled and largely volatile asset that hasn’t entered mainstream commerce. According to JP Morgan, BTC’s current rates are well beyond the brackets of fair value. Widespread use boosts bitcoin’s correspondence with other assets, which fluctuate with the economy, thereby lowering the pros of branching out into crypto.
“Digital assets remain the worst hedge for major investments in Equities, with doubtful diversification advantages at prices way beyond production costs, while correspondence with other assets are increasing as crypto ownership popularizes,” JP Morgan said.
The bank even described BTC as an “economic sideshow,” terming it as a significant step in financial tech. It is “the real financial transformational story of the Coronavirus era.” according to JP Morgan.
Meanwhile, some investors still maintain that the crypto’s volatile nature is the primary challenge to mainstream adoption as a payment avenue. On the flip side, Bitcoin lovers consider the crypto “digital gold” strong enough to stand against risks like inflation triggered by the enormous federal bank & government funding disbursed during Coronavirus.
Whether BTC is “the real financial transformational story of the Coronavirus era” or a potential life-saver from the dangers of the massive COVID stimulus remains a topic of discussion. Still, trends show more mainstream adoption and the likelihood of becoming a staple payment avenue.
Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high risk merchant account processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.