17.02.202111:55 Forex Analysis & Reviews: Bitcoin soars above $ 50,000

Bitcoin, hitting a price higher than $ 50,000, is a sign that the cryptocurrency is gaining acceptance among large investors and companies.

In fact, Tesla, one of the largest car companies, said it would someday accept Bitcoins as payment, as a result of which the cryptocurrency's rate hiked, thereby putting it on company balance sheets and on Wall Street.

However, even if Bitcoin is becoming mainstream, cryptocurrencies are still subject to scattered scrutiny around the world, mainly due to lack of clarity in regulation and links to crime.

In January, US Treasury Secretary Janet Yellen and European Central Bank President Christine Lagarde called for stricter oversight of Bitcoin over concerns about its use for criminal purposes, such as money laundering.

Despite that, interest in Bitcoin continued to grow, and it is further fueled by analyst speculations that its limited supply could increase profits.

There are also talks that it is becoming "digital gold", especially since investors predict impending inflation, based on central banks and governments seeking to stimulate the economy in monetary terms.

But president of St. Louis Fed, James Bullard, said Bitcoin's claims to rival gold do not threaten the dollar's dominance.

In any case, JPMorgan said Bitcoin is now a competitor to gold, and could grow to $ 146,000 if it becomes a safe haven asset.

"The fundamental view that Bitcoin is viable to investors and a treasury asset for corporations continues to gain traction," said James Butterfill, investment strategist at CoinShares.

And with a cryptocurrency worth approximately $ 1.5 trillion, investors are convinced that it is a good idea to own Bitcoin or other cryptocurrencies.