A Twelve years Old Bitcoin has won over Gold with a history of thousands of years. A kilogram of gold is worth $57000 and last week the price of one Bitcoin reached $60000+ that was more than gold's price. This is for the first time when Bitcoin has reached this price, and for the first time it has surpassed the price of gold.
Bitcoin has been going up continuously for the last four weeks, even though we have seen corrections in between. Even if we look at the last month's chart, bitcoin is still up from the last five months The biggest jump in the price of Bitcoin took place in February itself. Bitcoin has failed almost all claims of trade experts.
The increase in Bitcoin this time is strong and different. If we talk about 2017, bitcoin did not stay at its highest price for very long and it soon declined. This time in bitcoin in the last two months. There are some special reasons for the increase. The reason behind the rise in the value of any stock is the investment made in it.
Earlier, people used to invest in Bitcoin by taking Bitcoin at a lower price and selling it when the price went up. These people used to do it with the price of Bitcoin, and whenever the new investment came at the higher price of bitcoin, these people used to withdraw their investment.
Now the investment that has come in Bitcoin belongs to people who have a big name in the business world and have not come up most probably with the intention of trading in Bitcoin. If we talk about these investors, Grayscale, MicroStrategy, and recently Tesla, not all of them have invested in bitcoins for a short time but as a business investment.
All this investment they have made in bitcoin is their additional fund. That means this fund that was kept as an additional amount for investment purpose in their surplus account. This also means that this investment not immediately required in their business. Companies often invest their additional funds somewhere so that this investment can grow while remaining safe. This time these companies found Bitcoin was the best investment and all these companies cannot go wrong at the same time.
If we talk about MicroStrategy investment, then they have invested in bitcoins from time to time. According to a report, this company has bought 88000 bitcoins and got them @$15000 per bitcoin. If we make profits of their investment Speaking of Bitcoin today, even if you consider it to be close to $50000, then they have made a profit of $35000 per bitcoin, about $35000 per bitcoin.
Tesla has also invested one and a half-billion dollars in bitcoins, and this investment is about @$40000 per bitcoin. The founder of MicroStrategy also has Bitcoin as his private investment. All these people are going to keep the bitcoin for a long time and there is hope that the price of bitcoin can go up further. However, we shall see correction and profit-booking by traders as usual.
Given the profitability of these companies, some other companies also intend to invest in bitcoin. Today investing in bitcoin seems to be better than gold. One reason behind the price rise of Bitcoin is that it is very limited. Nearly 90% of the two million bitcoins have hit the market.
The Canadian government has recently approved the ETF exchanges trading fund of bitcoins. Many countries in the world are looking at bitcoin as a safe alternative to currency. In such a situation, the price of bitcoin and going up and making new records is on the card.