12.02.202110:55 Forex Analysis & Reviews: Bitcoin is on the rise again

After a sharp drop last Tuesday, Bitcoin rallied, as a result of which it hit a new all-time high. Now, its price is near $ 47,297.

In fact, since the beginning of 2021, the value of Bitcoin has increased significantly. It surged very noticeably since November, when it traded around $ 16,000. The driver of growth during that time was news from various companies and investors. In particular, on Tesla's 1.5 billion investment in BTC.

In line with this, many expect that someday, cryptocurrencies will be accepted as payments for goods and services. However, governments will not allow this. For instance, the European Central Bank already announced that it does not plan to include Bitcoin in its reserves, at least in the near future.

"This is extremely unlikely. So much that there is nothing to talk about. " ECB's head, Christine Lagarde said. "What is possible is that ordinary (paper) money will become digital. For example, "digital dollar", "digital euro" etc," she added.

In addition, if we compare stock markets with cryptocurrencies, the latter are significantly inferior. The world stock markets, at the end of last year, reached approximately $ 100 trillion, while the cryptocurrency market, after growth this early February, reached less than $ 1.5 trillion.

Aside from that, there is uncertainty within cryptocurrencies. In fact, during the years that Bitcoin jumped significantly (2013, 2017 and 2019), investors were mostly manipulating the market. Hence, it is pointless to forecast good entry and exit levels, because there is always a huge risk of getting caught at the time of the next manipulation.

And although bitcoin is limited in its volume, it is not a very safe asset. No one can guarantee that it will survive ten years later, all due to the fact that it requires very high energy costs for mining, as well as the coordination of operations in its blockchain. The high volatility of BTC means that it will be much more difficult to exit at an attractive price than in the case of simpler assets. Therefore, in this respect, bonds or even gold look much more attractive and reliable.