Bitcoin surges on 12th anniversary

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January 04 2021
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A frenzy of trading between Christmas and new year, and renewed confidence in its real-world applications have seen bitcoin extend its record-breaking rally on its 12th anniversary.

On Saturday, 3 January 2009, 12 years after Satoshi Nakamoto created the first entry in the bitcoin blockchain the price of bitcoin surged with the price of the world’s most popular cryptocurrency has railed to as high as US$33,763.

The price of bitcoin when it first started trading was around $0.0008 to $0.08 in July 2010 per coin.

The surge in bitcoin’s value has taken the total value of the alternative asset class past US$600 billion.

Bitcoin has now advanced more than 300 per cent in 2020, and with the latest leg higher has added more than 50 per cent since crossing $20,000 just two weeks ago.

“It’s very likely that the asset will eventually pass $100,000 per coin,” Sergey Nazarov, co-founder of Chainlink, a global blockchain project, wrote in an email on Saturday. “People have been steadily losing faith in their government currencies for years, and the monetary policies resulting from the economic impact of the coronavirus have only accelerated this decline.”

Investors are putting the latest rally down to an increase in government spending, and the deflation that comes with printing money.

“Some will argue that there is more to come from both gold and bitcoin, especially if Governments keep piling up debts and central banks do their best to fund that borrowing through the backdoor with QE, zero interest rates and bond yield manipulation, thanks to their scarcity value relative to cash,” said AJ Bell’s investment director Russ Mould.

“Bitcoin’s supply is fixed at 21 million units and gold supply grows at barely 2 per cent a year, as the metal is hard to find and expensive to mine.”

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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