Early investors of the cryptocurrency Bitcoin continue to see unprecedented returns on their initial investments this year and, as some experts predict, on into 2021. The price of online currency Bitcoin has exceeded expectations throughout November 2020, with its price rising above $19,000 USD again – the highest it has been since its terminal peak of over $19,600 USD back in December 2017.
The 2017 spike was suggested to be the result of a bubble in the increase in recognition and subsequent popularity of Bitcoin. The more recent spike is being attributed by some experts as in part thanks to the uncertainty caused by the ongoing COVID-19 global pandemic crises. In response to the sudden increase, Citibank tweeted in the middle of November a series of charts that indicate it believes the price of Bitcoin coin could reach $318,000 by December 2021.
Other experts have suggested that the unstable political climate exacerbated worldwide by the 2021 November US elections. One tech website, Investopedia, has also linked the concurrent recent inflation of the US dollar and decrease in the dollar’s purchasing power to the recent spike in Bitcoin buying. The economic uncertainty in the US and decrease in the dollar’s purchasing worth has come from the recent increase in stimulus spending due to the ongoing coronavirus crises.
With many governments around the world facing growing concerns with the political unrest they face within their own countries, there has been increased interest in any stabilising possibilities that could be engaged in their financial markets. Blockchain technology and decentralisation of power away from traditional banks are just several of the factors working in Bitcoin’s favour.
The rise in Bitcoin comes as demand for new coins faces new challenges within the online marketplace. Back in May 2020, Bitcoin underwent a ‘halving’ process that saw fewer bitcoin enter the market place each day which saw suggestions of a surge in prices that never happened. The next halving is expected in 2024.