Bitcoin Trades Above $50K for the First Time

Bit­coin topped $50,000 for the first time Tues­day 17th Feb, dou­bling in value in less than 8 weeks. The digi­tal cur­rency traded as high as $50,580, be­fore clos­ing at $48,642, up 0.95% for the day and 68% for the year, with a to­tal mar­ket value in cir­cu­la­tion close to $909 bil­lion.

The $50,000 level is an emotional level for peo­ple but it is also a sim­ple re­sult of sup­ply and de­mand. ­From August through De­cem­ber, about 150,000 new bit­coins were minted, and we believe about 360,000 bit­coins were bought in the same pe­riod, and that im­bal­ance has con­tin­ued in 2021.

The Bank of New York Mel­lon Corp. said it would start treat­ing bit­coin like any other fi­nan­cial as­set, and Mast­ercard said it would in­te­grate bit­coin into its pay­ments net­work this year. Tesla pu­chased $1.5 bil­lion worth of the cryp­tocur­rency for its cor­po­rate trea­sury and plans to start ac­cept­ing it for pay­ment for its Electric Vehicles.

However, critics say it is less of a cur­rency and more a spec­u­la­tive fix­a­tion, and that its price may be due in part to market ma­nip­u­la­tion. Most com­modi­ties, even gold, have some physical use, Bit­coin though, has very lit­tle prac­ti­cal use and doesn’t pro­vide a steady in­come like I’d end yields from stocks and shares.