For the first time in history, Bitcoins value rose to $50,000 on Tuesday. Experts believe this is just a worming up for the future, but that remains to be seen.
One of the most common beliefs is that New Year brings new opportunities. We won’t discuss if that is just an old saying or not, but in the case of Bitcoin, it’s apparently true. The start of this year was nothing but beneficial for this digital currency since it experienced a massive rise. Actually, the biggest one since the moment of founding.
It’s been 13 years since this cryptocurrency was introduced to people. Back then, it wasn’t worth that much and as proof of that, we have a programmer Laszlo Hanyecz who made the first transaction using Bitcoin. He bought two pizzas for 10,000 BTC. If we convert that to the actual worth nowadays, it turns out that those two pizzas were paid more than $500,000,000. So, now you understand how much Bitcoin grew during those 13 years of existence.
This change didn’t happen for one night, of course. Back in 2012, the price went from $0.30 per bitcoin to $5.27 for the year. After that, it rose up to $770 and fell to $314 in just one year. As you can see, this currency had a lot of excellent moments, but it also experienced significant downfalls. Now, we look at it as a relatively stable currency that can be very interesting to traders from all around the world. But what happened in 2021, that helped Bitcoin reach all-time high? We can say that in just one word — Tesla.
What Caused This Rise?
Earlier this month, Elon Musk, founder of Tesla Inc. decided to reveal in the press release that he had invested $1.5 billion in Bitcoin. But not only that, in that announcement it’s written that Tesla will implement this digital currency as a payment method. So, anytime soon clients will be able to pay for their electric vehicles using Bitcoin.
This decision turned out to be beneficial on different levels. First of all, it helped Bitcoin to reach the record high and second, it helped Tesla to ensure future generations stay loyal to the company.
According to experts, this move will help Tesla Inc. to gain trust from Gen Z as they will be the main clients in the future. So, not only did this company make an excellent move for current business, but it also ensured stability in the years that will come.
It’s safe to say that Elon Musk is a person who stands behind massive Bitcoin rise, but is he the only one who can be “blamed” for this? Not at all. Many companies followed his steps immediately, just like experts predicted. One of those companies is Mastercard, who came out with a big announcement.
On Wednesday, Raj Dhamodharan, executive vice president of digital asset products in Mastercard published that digital assets are becoming a more important part of the payments world, saying that right now Mastercard is preparing for the future of crypto and payments. He also announced that by the end of this year, Mastercard will start supporting select cryptocurrencies directly on their network. Having in mind that we are talking about one of the biggest payment providers, it’s certain that this announcement brought a lot of popularity to Bitcoin.
The Bottom Line
The crypto king, as many people call it, is a top cryptocurrency without any doubt. Yes, it has its ups and downs, but overall nobody can deny Bitcoins grow. Yes, Elon Musk triggered its latest rise, but other companies followed and one of the most certain things for the future is that more companies will follow Tesla and Mastercard on their Bitcoin journey and enlist this digital currency as a payment method. Without a doubt, this will ensure stability and additional growth.
So, if you are interested in adding Bitcoin to your trading portfolio, just log in to your trading account