“The reason for the rise in the price of bitcoin is now mainly mania, which broke out after the cryptocurrency in mid-December 2020 exceeded the psychological limit of $ 20,000 apiece (CZK 424,880). Overcoming this level, which has resisted for a relatively long time, has delayed a reminder among investors about the bitcoin bubble at the end of 2017, “said Kovanda.
–
He reminded that after reaching the 20,000 mark in 2017, there was a protracted price slowdown. The exchange rate of the most famous cyber currency in the world basically did not rise until this year.
–
Bitcoin is a virtual currency, the coins in the picture are just a souvenir.
Photo: Benoit Tessier, Reuters
“After breaking the $ 20,000 threshold, bitcoin and cryptocurrencies generally attract the attention of the media and the general public more intensively. It intensifies the phenomenon of fear of an untapped life opportunity to get rich easily, so that so-called ‘hot money’, sometimes also so-called ‘stupid money’, is now enormously leading to cryptocurrency. These are the funds of speculators, or, conversely, inexperienced investors who are trying to ride the wave of growth, thereby strengthening it. The result is a mania that has little to do with fundamental development, “said the economist.
–
He emphasized that this did not mean that the basis of this mania was unhealthy. “The sustained price growth of bitcoin and some other cryptocurrencies is due to the extremely expansionary policy of central banks, as well as the increased interest of institutional investors, including well-known names from the conventional financial world such as PayPal,” Kovanda concluded.
–
Before the weekend, the value of bitcoin was below $ 30,000 (CZK 637,320), but gradually climbed to $ 34,544 (CZK 733,730) during Saturday and Sunday. On Monday afternoon, however, the exchange rate fell again to $ 28,154 (CZK 598,000).
–
Development of bitcoin value over the last week
