Bitcoin is bidding adieu to 2020. Here comes 2021, and while the past 12 months have certainly been difficult for people around the world, bitcoin has had one heck of a time. The currency has risen to new heights, has gained extensive attention and respect from institutional players, and is now viewed as a store of value by many people and sources.
As we say goodbye once and for all to what has surely been an upsetting and crazy year, let’s look back on some of the biggest bitcoin stories of 2020.
Bitcoin Price Hits New All-Time High
The asset that everyone has come to know – and love – reached a new all-time high of more than $27,000, beating out the previous record it set in 2017 by roughly $8,000. The currency was trading for over $19,000 about three years ago, but the asset has since put that price to shame, hitting all kinds of tall peaks during a year when our standard financial systems proved relatively convoluted.
With excessive overprinting of stimulus funds and inflation on the rise, many turned to bitcoin as a potential hedge tool. They now saw it as something that could keep their wealth steady during times of economic strife, and many people sought to add it to their portfolios, which is likely the reason behind the currency’s meteoric rise this year.
2020 Was the Year of the Institution
In the past, bitcoin was the object of affection for retail players, but this year, the tide turned, and many institutions began to see bitcoin as something that was worth owning. Companies likes MicroStrategy wound up putting several hundred million dollars into bitcoin, and later worked hard to raise money so it could buy more.
Many other firms, such as Square and Stone Ridge, looked to follow in MicroStrategy’s footsteps and ultimately sought to buy up as much bitcoin as they could, with Square buying more than $50 million in BTC units and Stone Ridge buying more than $100 million.
PayPal Says “Yes” to Crypto and BTC
The world’s largest online payment system announced to the world that its customers would be able to purchase digital currencies through its platform. In addition, they could also utilize digital currencies to purchase goods and services, thereby bringing the goal and ideals of the original bitcoin whitepaper to fruition. For many years, bitcoin was designed to be a payment coin, but had always been rejected in this department thanks to its ongoing volatility.
Now, however, thanks to PayPal, bitcoin is getting closer and closer to serving in the capacity it was originally intended for. Following the news, bitcoin’s price ultimately surged to a new high point in 2020, though it has since doubled that price. All we can do is hope that this good fortune lasts into the new year.