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Bitcoin rises to a record high

D.he crypto investment Bitcoin, often referred to as digital currency, is more valuable than ever. On Monday evening, the price of the oldest and most famous cryptocurrency on the Bitstamp trading platform rose to $ 19,857. This surpassed the three-year-old record high from the end of 2017. At that time, Bitstamp hit a high of $ 19,666. On other platforms, of which there are numerous, the respective record levels differ somewhat. On Tuesday morning, the Bitcoin price was $ 19,417.

Bitcoin has grown in value in the past few weeks. Its value has almost doubled since the beginning of October alone. The main driver is the plan of the large payment service PayPal to enable its customers to pay with Bitcoin and other cryptocurrencies in the future. In addition, increasingly professional investors seem to be developing interest in Bitcoin. A few months ago, for example, the large asset manager Fidelity launched a Bitcoin fund.

However, digital currencies such as Bitcoin are highly prone to fluctuations in price. That is why central banks such as the Bundesbank refuse to refer to Bitcoin as a currency, since the crypto investments do not fulfill the important money function as a store of value. The best example is the record hunt that drove Bitcoin to almost $ 20,000 at the end of 2017. A short time later there was a steep price crash. Even before the recent record jump, Bitcoin had fallen sharply in the meantime. Critics saw their skeptical attitude towards digital currencies confirmed, according to which the high exchange rate fluctuations stand in the way of their use as a means of payment or investment.

However, many Bitcoin fans are of the opinion that digital currencies could increasingly establish themselves as a serious alternative to conventional currencies. One reason for this is the high general interest in cryptocurrencies, which is driven not least by the digital money efforts of major central banks such as the European Central Bank (ECB). On the other hand, the rocketing price increase could speak against a stabilization of the price development: In March the Bitcoin was just worth 4,000 dollars.

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