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Bitcoin digital currency extended its record rally on Saturday, starting the year for the first time with a surge of over $ 30,000. More and more traders and investors are betting that it is on its way to becoming a popular payment method.
The world’s most popular cryptocurrency was priced at $ 33,099 on Saturday, with almost all other markets closed on the first weekend in 2021. Most recently, it rose 12% to $ 32,883.
Bitcoin surged more than 300% in 2020 and has surged more than 50% with the recent surge since topping $ 20,000 two weeks ago.
The blockchain currency has only been around for about a decade, and in 2020 demand from larger U.S. investors soared, attracted by the perceived inflation-hedging qualities and potential for quick gains, as well as expectations that it would become a mainstream payment method .
Investors said the limited supply of Bitcoin – made by so-called “mining” computers that validate blocks of transactions by competing to solve math puzzles – has been driving up moves in recent days.
Some also saw it as a safe haven during the Covid-19 pandemic, much like gold.
“It is very likely that the asset will exceed $ 100,000 per coin at some point,” wrote Sergey Nazarov, co-founder of Chainlink, a global blockchain project, in an email on Saturday. “People have been steadily losing confidence in their government currencies for years, and monetary policies resulting from the economic impact of the coronavirus have only accelerated that decline.”
It is traded on numerous exchanges, the largest of which is Coinbase, preparing to go public and become the first such platform to be listed on Wall Street.
Several competitors’ cryptocurrencies use similar blockchain or electronic ledger technology. The second largest Ethereum gained 465% in 2020 and rose nearly 7% on Saturday.