Bitcoin hit $50,000 for the first time earlier this morning, continuing its meteoric ascent, and was hovering around $48,000 at midday.
“The $50,000 level is an ’emotional level for people in the space,'” Brian Melville, head of strategy at the trading firm Cumberland, told The Wall Street Journal. But it is also a simple result of supply and demand, he said.
Per Satoshi Nakamoto, which is likely a pseudonym for Bitcoin’s inventor or group of inventors, the total number available of Bitcoins is limited to 21 million, which should be reached in 2140.
Earlier this month, Elon Musk said Tesla had bought $1.5 billion Bitcoin and that it would soon accept the cryptocurrency as a form of payment.
“The prices of digital assets have been in the past and may continue to be highly volatile, including as a result of various associated risks and uncertainties. For example, the prevalence of such assets is a relatively recent trend, and their long-term adoption by investors, consumers and businesses is unpredictable,” Tesla said in the Securities and Exchange Commission filing.
A report from Copper.co notes that Bitcoin kicked off 2020 at just over $7,000. “Even a global pandemic couldn’t suppress prices for too long,” the report says.
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