It took bitcoin 10-plus years to reach $20,000, but then just another 3-plus weeks to double again to $40,000. Experts believe the bull run is actually due in large part to increasing institutional investment in digital currency from established firms such as PayPal PYPL and Ruffer Investment Management, which purchased around $745 million in bitcoin in November. In an interview with CNBC, Social Capital’s Chamath Palihapitiya said bitcoin is “probably going to $100,000, then $150,000, then $200,000. In what period? I do not know. [Maybe] 5 or perhaps ten years, but it’s going there.”
The total cryptocurrency market capitalization – a major bellwether for the general health of the digital asset class – broke $1 trillion for the first time ever at 19:00 ET on Tuesday January 6th. Bitcoin briefly topped $37,000 around the same time, marking a new record high.
The surge continued into Friday, with Bitcoin valued at over $41,000 as of press time. Which means that value of Bitcoin has risen by more than 400 % over the last year. Interest in the virtual currency has been especially high over the last month, during which time its value has more than doubled. The interest has reportedly been driven by investor’s desire for an alternative asset not tied to a central bank, unlike the dollar or perhaps euro. Obviously, that interest may or may not last. If nothing else, cryptocurrency has proven itself to be extremely volatile in recent years. The value of Bitcoin, for instance, crashed from $19,000 to $3,200 between 2017 and 2018.
If the past year has proven anything, it’s that cryptocurrencies have a lot more long lasting power than the naysayers thought. And that a summary of the best cryptocurrencies to invest in is most certainly a worthwhile endeavor.
Cameron and Tyler Winklevoss, brothers who became famous for their legal battle with Mark Zuckerberg over the origins of Facebook, are also major holders of bitcoins. At the peak of the last bitcoin boom in 2017, the Winklevoss brothers had $1.3 billion in bitcoin, according to The New York Times. That same bitcoin hoard would be worth $2.6 billion today.
Bitcoin may be the currency that has most benefited from the recent surge in interest, but other virtual currencies have also seen their value rise as well. By the end of trading on Thursday, Ethereum, which is used by the Ethereum network, was valued at $140 billion Meanwhile, other notable currencies aren’t doing too shabby either. Tether is now worth $22 billion, Litecoin sits at $11 billion, and Bitcoin Cash checks in at $8 billion.