The price of one Bitcoin blew past $35,000 USD this week, and that has stirred excitement about the cryptocurrency. The price of Bitcoin has been rising for several months with little fanfare.
In early Septemer of 2020, the price of Bitcoin was a little over $10,000 — a mere 1/3 of today’s price. The increase has been rapid, but somewhat steady compared to how volatile it used to be.
Bitcoin’s meteoric rise has been spurred by a combination of people who are seeking a hedge against increasingly heavy inflation (devaluation of conventional money due to quantitative easing), stock market crashes, and as a way to diversify their investment portfolios a bit more.
2020 was a year of great uncertainty and losses for nearly everyone, including investors. The spread of negative interest rates around the world is also another possible motive for increased Bitcoin investments.
Exorbitant wire transfer fees, human rights activists accepting Bitcoin donations, and a lack of access to banking infrastructure in many countries has also contribited to it’s adoption.