Helped by the Technology Giants the Price of Bitcoin Leaps

 

Many technology giants are getting involved with cryptocurrency, from Apple to Tesla to Square. A spokeswoman for MassMutual said the $100 million investment is part of an ongoing strategy to capitalize on emerging opportunities. Tesla has started allowing customers to pay for their vehicles directly with Bitcoin. Square is also contributing to an open-source project. Its representatives say the project is good for the entire industry.

Corporate adoption

The price of Bitcoin has been steadily rising since it first broke the $1,000 mark in January 2017. It doubled by mid-May and reached a high of more than $19,000 by December. Merchan, a computer software executive from Virginia, is among the many investors who've witnessed the soaring price in the past year. However, he maintains a long-term mindset.

After the media coverage, the crypto industry began a massive surge. The rise in price prompted the creation of thousands of altcoins, and international diplomats and governments talked about the future of cryptocurrency regulation. Many financial experts also discussed the mainstream adoption of this digital currency. Over the last year, the price of Bitcoin bounced around from side-to-side, with the lowest dip occurring in December at around $3,236. However, at the end of the year, the price of Bitcoin reached $29,374 - a staggering increase of over 300%.

Regulatory changes

There have been a few major developments that have helped the price of Bitcoin jump in the past month. The first is the ban of ICOs in China. While this slowed down bitcoin's price by 500 percent, it bounced back quickly to $5,000. After that, Japan announced that it would recognize the digital currency as legal tender. Although these changes will likely have a limited impact on the price, they will certainly boost its value.

Recently, President Biden signed an executive order to regulate digital currencies. This order directs federal agencies to assess the risks of using these digital assets and consider new regulations. It is a step toward making cryptocurrency more accessible to American citizens. The executive order also calls on regulators to evaluate the risks and benefits of cryptocurrencies and ensure that they do not pose risks to national security and financial stability. Further, the order aims to create a federal strategy to protect the U.S. financial system from the risk of a digital currency crash.

Fear of missing out

While it is not easy to create digital currencies, the increase in supply has created a wave of investor interest. This is the 'fear of missing out' effect, which has fueled a lot of investors' speculation. Many become evangelists of the new trend and make millions of dollars. Because they're making money, this influx of investors creates a "fear of missing out" syndrome.

However, while technology giants and mainstream media are helping the cryptocurrency market rise, it's important to understand what they are investing in before making a decision. While some investors may be concerned about being left behind or being branded a fool for buying Bitcoin, these feelings are no justification for risking their money. Instead, consider the risk of regret, and decide if it's worth the risk. Would you regret missing out on a huge gain or a large loss?

Investment firms specializing in cryptocurrency

The technology giants are stepping in to support the new digital currency, and their support is bringing bitcoin's price a long way. Tesla filed a regulatory filing in June 2021, noting that a sharp drop in the price of bitcoin could harm the company's results. Meanwhile, Block, formerly known as Square, invested $50 million in bitcoin in October 2020. The company has a goal to mine 5,000 BTC by 2021.

The technology giants are not the only ones helping the new currency. Increasingly, institutional investors are buying Bitcoin. Companies like Tesla, Block, and Coinbase have all purchased hundreds of millions of dollars worth of the virtual currency. For years, the thought of a publicly traded corporation buying Bitcoin was laughable. Many people believed the price of the cryptocurrency was too volatile to be worth it. However, that notion has changed. Now, publicly traded companies are purchasing Bitcoin to support the new technology.