Bitcoin is the new gold
Bitcoin's value hit an all-time high today, trading at $68,000 on Tuesday morning. Investors are anticipating that it will continue to rise, CNBC reports.
Although the price of Bitcoin has slowed to $66,700 as of the writing of this article, there is still a lot of interest in the currency and investors are more optimistic about its short-term prospects than ever. As we have seen, it is impossible to predict when the Bitcoin gravy train will stop running and plummet again.
The New Gold
Analysts believe that rising inflation may be the reason behind Bitcoin's and other cryptocurrencies like Ether, as well as stimulus spending and government spending.
According to Susannah Streeter from Hargreaves Lansdown financial services company, inflation "will see the money's value decrease over time." However, Bitcoin has a limit on how many coins can be created. Susannah Streeter spoke out for The Evening Standard in the UK.
Investors are now starting to treat Bitcoin as gold, an inflation hedge that allows them to keep their Bitcoin value over the long-term.
Wilfred Daye of Securitize Capital said that inflation is a key concern for investors today. He also stated that the younger generation of investors favors cryptocurrency over gold as a hedge.
Wall Street expects the trend to continue. According to CNBC, JPMorgan doubled down on its prediction that Bitcoin would eventually reach $146,000.
Not only finance professionals are excited. During an investor call last week, Jack Dorsey, CEO of Twitter, called for Bitcoin as the "native cryptocurrency for the internet".
Taproot, the first major upgrade to the digital currency in four years is coming. This tech allows transactions gain privacy and efficiency. It also lays the foundation for "smart contracts", which are popularized by Ethereum.
It remains to be seen how much room there is for Bitcoin's value. We may see Bitcoin continue to rally as inflation continues to rise.
READ MORE: Bitcoin reaches new record high of $68,000, as cryptocurrencies rally [CNBC]
Bitcoin hits its highest price in its entire history
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