Bitcoin climbed to a record high Thursday, bringing the total market value of all cryptocurrencies above US$1 trillion for the first time, according to data by crypto coin trackers CoinMarketCap and CoinGecko.
Bitcoin traded above US$40,000 briefly for the first time as governments increase spending to blunt the economic impact of the coronavirus. This has raised fears about rising inflation and U.S. dollar debasement.
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The cryptocurrency continued to fluctuate throughout the day.
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Bitcoin is gaining traction with more mainstream investors who are increasingly convinced that it will be a long-lasting asset, and not a speculative bubble as some analysts and investors fear.
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Sergey Nazarov, co-founder of Chainlink, a decentralized network that provides data to smart contracts on the blockchain, said that there is a “lack of faith in traditional institutions that is driving this large rally towards cryptoassets.”
“While outsiders may view the cryptocurrency industry being valued at over US$1 trillion as an incredibly significant milestone, in actuality our space is still in one of its very early stages of development and growth,” Nazarov said.
With files from globalnews.ca