The price of bitcoin exceeded the $ 30,000 mark for the first time

The price of bitcoin exceeded the $ 30,000 mark for the first time

The price of bitcoin has exceeded the $ 30,000 mark for the first time, according to CoinDesk stock records. During the year, the price increased by more than three hundred percent. The world's first decentralized cryptocurrency sold for $ 31,220, an increase of more than six percent over the previous day. Strengthening the oldest and most famous cryptocurrency takes your breath away. At the beginning of 2020, bitcoin sold for about $ 8,000, then, during the first wave of a new coronavirus pandemic, its price dropped below $ 4,000. Later, a slow strengthening began, which accelerated sharply in autumn 2020. Since the end of September, its value has risen by more than $ 20,000 or 190%. Bitcoin has a market share of almost 70%, with a significant gap by the largest digital currency. Experts estimate that its market capitalization is $ 550 billion. It is not entirely clear what is the immediate cause of the rise in the price of bitcoin in the new year. There were several factors behind its strengthening last year. Increasing its acceptance among investors is considered to be the most important. The PayPal payment service, which wants to enable its users to make payments in digital currencies, has greatly contributed to this. Another factor was the increase in demand from institutional investors who buy bitcoin as a hedge against inflation, similar to gold. This is due to unprecedented fiscal and monetary incentives to support economies during the new coronavirus pandemic. However, experts also warn against the risk of extreme fluctuations in the bitcoin exchange rate. Three years ago, its price fell by about 70% in a short time.