The world’s cryptocurrency is presently worth more than one trillion, with bitcoin accounting for a large majority of the value. The price of probably the oldest virtual currency has risen to almost $40,000, pushing the value of all bitcoins in circulation up to much more than $700 billion.
The entire cryptocurrency market capitalization – a major bellwether for the general health of the digital asset class – broke one trillion for the first time ever at 19:00 ET on Tuesday January 6th. Bitcoin briefly topped $37,000 around the same time, marking a new record high.
The surge continued into Friday, with Bitcoin valued at more than $41,000 as of press time. That means that value of Bitcoin has risen by over 400 percent over the last year. Interest in the virtual currency has been particularly high over the last month, during which time its value has more than doubled. The interest has reportedly been driven by investor’s desire for an alternative asset not tied to a central bank, unlike the dollar or perhaps euro. Of course, that interest may or may not last. If nothing else, cryptocurrency has proven itself to be very volatile in recent years. The importance of Bitcoin, for example, crashed from $19,000 to $3,200 between 2017 and 2018.
There is a great deal of competition out there in the world of cryptos. And volatility is a characteristic of a lot of them. That’s why the best cryptocurrency list is usually intended for the buy and hold crowd.
While the recent surge in Bitcoin value is great news investors, this is particularly true for Satoshi Nakamoto. The inventor of the virtual currency is actually believed to own one million Bitcoin. If true, Ars Technica reports that the investment would put his net worth at more than forty billion. That would make him one of the thirty five richest folks in the world, in accordance with the Bloomberg’s Billionaire Index.
Typically, Bitcoin’s bull cycles pave the way for a subsequent altcoin rally, which is often larger than the initial BTC mark-up. Dubbed ‘altseason’ by the crypto community, the parabolic rise in Ethereum and other altcoins can happen quickly, leaving investors with little time to prepare. Many crypto observers are forecasting a bullish 2021 for Bitcoin and altcoins. They cite growing institutional demand for BTC, the ubiquity of crypto on-ramps and the natural ebb and flow of four-year market cycles for their optimism.