(Reuters) – Bitcoin digital currency extended its record rally on Saturday, starting the year with an increase of more than $ 30,000 for the first time, with more and more traders and investors betting it is on its way to becoming a payment method conventional.
The price of the world’s most popular cryptocurrency reached $ 31,824 early Saturday, with almost all other markets closed in the first weekend of 2021. The latest hike was around 8% to $ 31,743.
Bitcoin advanced more than 300% in 2020 and, with the last highest step, added more than 50% since the $ 20,000 ticket just two weeks ago.
The blockchain currency has only existed for a decade or more, and in 2020, it saw the demand of major US investors grow, attracted by its protective qualities against inflation and the potential for quick gains, as well as expectations that it would become a payment conventional method.
Investors said the limited supply of bitcoin – produced by so-called “mining” computers that validate transaction blocks competing to solve mathematical puzzles – has helped to drive upward movements in recent days.
Some also saw it as a safe haven during the gold-like COVID-19 pandemic.
It is traded on several exchanges, the largest of which is Coinbase, which is preparing to go public and become the first platform of its kind to be listed on Wall Street.
Cryptocurrencies of several competitors using blockchain technology or similar electronic ledger. Ethereum, the second largest, gained 465% in 2020 and was up 5.3% on Saturday.
Reporting by Alden Bentley; Editing by Daniel Wallis and Diane Craft