2020 was a stellar year for cryptocurrencies, especially Bitcoin. With the digital asset’s price quadrupling over the year, many speculators have claimed that cryptocurrencies are making their way into the mainstream.
Bitcoin’s impressive rise has naturally led to many investors weighing in on the future of the asset.
According to the S&P Index, trust in the popular cryptocurrency has been growing steadily over the year. The most common concerns surrounding digital currencies, including coins being stolen or lost, appear to be fading as Bitcoin becomes more mainstream.
In their latest report, the Wall Street giant explained that parallels between Bitcoin and gold have grown over the past year. Since both Bitcoin and gold are viewed as finite resources, their potential value can exist independently of financial markets, hence why both asset prices soared during a year marked by a global pandemic. This was also the year during which corporate, retail and institutional investors began to pay proper attention to Bitcoin.
Growing Interest in Bitcoin
2021 promises to be a great year for cryptocurrencies, especially as more companies begin accepting digital currencies as a form of payment. After Square, Inc. announced a $50 million investment in Bitcoin and Paypal introduced the rollout of cryptocurrency function on its platform, it appears that trust in the digital currency is growing ever stronger.
Companies such as Grayscale, MicroStrategy, and Galaxy Digital have also made headlines recently, for investing large amounts of their assets in cryptocurrencies. This shows that both credibility and appetite for digital currencies are on the increase.
Wall Street’s Reaction
Back in May 2020, hedge fund manager Paul Tudor Jones helped trigger the Bitcoin craze among Wall Street investors. He claimed he was buying Bitcoin as a hedge against the inflation he foresaw
would result as policymakers reacted to the coronavirus pandemic – and he was not wrong. This announcement was followed by a similar statement from other prominent investors, including Stan Druckenmiller.
With each investor, public trust in Bitcoin and its underlying technology continues to grow. It’s only a matter of time until Bitcoin becomes even more widely accepted as a payment method, and 2021 may hold the key to making this happen.
Now that Bitcoin has entered the mainstream, will other investment firms and retailers be
diversifying their portfolios? Or will Bitcoin’s empire crumble down once traditional economies regain strength? Either way, traders can profit from Bitcoin’s rises and falls by trading CFDs on cryptocurrency pairs at CedarFX. With a 0% Commission Account or an Eco Account, traders benefit from low spreads, ultra-fast withdrawals and high leverage on all trades.
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