Have you been thinking about adding Bitcoin (BTC) to your portfolio? Like millions of other people who follow the financial news. you’ve probably noticed the cryptocurrency in a lot of recent headlines as 2021’s second quarter unfolds. That’s actually a good thing because it means trading enthusiasts can gather fresh data about how well BTC is doing, what’s its latest price swings mean, and what its long-term prospects might be. Here’s a quick rundown of the very latest events in the world of Bitcoin, the world’s largest, most popular, and highest-capitalized cryptocurrency.
There’s a New High, Again
The virtual coin hit another new high, surpassing the $60,000 mark in mid-March. That’s an astounding feat whether you’re a Bitcoin fan or not because the cryptocurrency only recently (in January) peaked at a then-new high of $50,000. The facts just get more and more incredible as you scan through the relevant headlines for not only this, but other cryptos as well. For instance, BTC has more than doubled in price since the final trading day of 2020. Then, in rapid succession over just a few days, knocked out record highs of $30,000 and $40,000 within the first week of the new year. As of March, the amount of the coin in circulation has exceeded the $1 trillion milestone.
The Tesla Bump Continues
If you think you might like to try Bitcoin trading yourself, consider what one of the world’s most active entrepreneurs recently did. Founder of Tesla Motors, Elon Musk, purchased $1.5 billion worth of BTC for his company’s treasury. Then, in early March 2021, he gave hints that the electric car company will likely begin accepting the crypto as a legal form of payment from consumers. Even before Musk, payment processing giant PayPal announced in 2020 that it would allow the site’s users to store the virtual currency and use it for payments. Other companies followed suit, but Tesla and PayPal were the first major players in the global economy to lend credence to Bitcoin’s viability as both a form of payment and a store of value.
More Companies are Jumping on the Crypto Bandwagon
After Musk and PayPal blazed the way, the first quarter of 2021 saw a veritable deluge of corporations jumping on the cryptocurrency train. They include MicroStrategy, a maker of software, as well as some financial organizations. For instance, Visa, Square, Mastercard, BlackRock, and Mellon Bank of New York are now all in the crypto-friendly column, meaning they either accept it as outright payment or are getting ready to make the transition.
Investors Use BTC To Fight Biden Inflation
With early 2021 witnessing higher bond yields and the prospect of a government-induced inflationary cycle, many investors are looking to the leader of the cryptocurrency niche as a way to beat Biden inflation. Now that the new president has brought about a nearly $2 trillion stimulus deal, there’s worry that as COVID fears wane and the economy gets back on track, inflation will strike with a vengeance.
Built-In Scarcity Helps Bitcoin Compete with Gold
Finally, many in the financial media are becoming aware of the fact that BTC’s built-in cap on supply is serving a purpose. The way the crypto’s founders set it up, there will never be more than 21 million coins, which means the stuff is even more scarce than precious metals like gold, silver, palladium, and platinum. Scarcity plays into Bitcoin’s image as a store of long-term value and as a credible form of investment. No national government can decide, based on whims or policy moves, to print or create more Bitcoin. The value of each unit can rise, as it has, but the 21-million-unit cap is non-negotiable.
Other Crypto Coins are Doing Well
A rising tide lifts all boats, the old saying advises. That truth has been playing out in the cryptocurrency market as some of the other prominent players, like Litecoin and Ethereum, has also been setting records of their own and gaining more worldwide acceptance.
Blockchain Mining Companies are Riding the Wave
For investors who are interested in allocating at least a part of their portfolio to non-traditional assets, there are lots of options. In addition to the virtual coins, there are dozens of large mining operations. This is virtual mining of course, all done on the blockchain, but business is booming. Companies like Hive, Marathon Patent Group, and Riot Blockchain are just a few that have been doing very well in 2021. Plus, it appears that Coinbase will soon be listed on the major stock market exchanges.