Bitcoin, on Tuesday, surged above $50,000 to a new record high, building on a rally sparked by signals that institutional investors are increasing recognition of the world’s biggest cryptocurrency.
With Bank of NY Mellon and Mastercard having affirmed it last week, bitcoin holders who see it as the prospect of finance are moving a big move forward.
The intervention of Musk, Tesla boss Elon, has fueled excitement, and the more people who change it and use it as capital, the greater the probability that it could be taken on board as a popular currency. At the same time, that would spark more speculative activity.
“The possibility of interference exists (by central banks). It is possible to change the rules… Although the more individuals continue to use it and lend it greater credibility, the more difficult it is for central banks to step back”.
The use of corporate cash by Tesla to acquire Bitcoin ignited the debate about whether other big corporations would follow suit. Last week, Uber CEO Dara Khosrowshahi told that the company had debated the possibility of purchasing bitcoin, but was immediately rejected, but is debating whether to embrace cryptocurrencies as payment.
These advances have prompted many investors in cryptocurrencies to conclude that the current bull run is different from previous rallies. In late 2017, Bitcoin skyrocketed to almost $20,000 before losing over 80 percent of its worth the following year.
The new cycle is being fueled by demand from institutional investors, Bitcoin believers claim.
