The cryptocurrency bitcoin, which has been talked about for a long time, broke a new record last week and its value has crossed $50,000. In other words, if you look at the Pakistani rupee, the price of a bitcoin has exceeded Rs 8 million.
On Sunday, the bitcoin hit a new high, surpassing $58,000. It continues to grow this year.
Since the beginning of January, its value has increased by more than 90% and its total market value has reached one trillion dollars.
The reason for the recent rise in price is the acceptance of payments in this currency by Tesla and other major companies.
However, bitcoin has seen sharp fluctuations in prices since its introduction in 2009.
Bitcoin started the year with about 28,900, according to figures from the cryptocurrency news site CoinDesk.
Then in January alone, its value exceeded 40,000 US dollars. But then at the end of January, it started to decline and at the end of the month, its price dropped to 30 thousand US dollars.
It picked up again and on February 16 it crossed the 50,000 marks and continued to grow at a record high of $58,000 on Sunday.
The rise in the value of bitcoin is largely due to well-known companies that have started accepting payments in this currency.
Elon Musk revealed last week that his electric car maker, Tesla, had bought $1.5 billion worth of bitcoins and would use the currency as a payment to buy cars.
Master Card also intends to accept bitcoin as a form of payment while the world’s largest asset management company is looking for different ways to use this digital currency.
The COVID-19 pandemic has also contributed to the rise in bitcoin prices as more and more people go online to shop and move away from using real coins and notes.
But critics say the bitcoin is more of a speculative tactic than a currency, depending on market fluctuations.
Leading economist and Bitcoin critic Norrell Rubini says its practical use is minimal and it does not provide a fixed income like bonds or shares.
He recently tweeted that Elon Musk is buying it but that doesn’t mean everyone should follow him.
Bitcoin and U.S. tech stocks are the biggest market bubbles right now, investors say https://t.co/lzqNfdE6Kz
— Nouriel Roubini (@Nouriel) February 22, 2021
Matt Dixon, the founder of the cryptocurrency rating platform, says new investors still need to be aware of the risks involved.