Bitcoin reaches USD 40,000, doubling in less than a month

It was hard not to notice how Bitcoin skyrocketed last week. The cryptocurrency finally gained back the same media interest as it had three years ago when Bitcoin first touched the USD 20,000 level. We all remember the headlines from the beginning of 2018 predicting Bitcoin to be worth USD 100,000 by the end of the year, but it never happened. It was slowly losing its value and fell as low as USD 4,000 for a coin. Recently, the buzz around the cryptocurrency started again when Bitcoin price doubled in less than a month. On January 8^th 2021, 1 Bitcoin was worth USD 41,000. Basically, if you invested one thousand dollars in Bitcoin last summer, you would have ten thousand dollars now.

But can you buy a cup of coffee or pay for groceries using Bitcoin? – Probably not with the current version of it. However, the cryptocurrency manages to perform a store of value function. In fact, many investors consider Bitcoin to be a new safe-haven asset just like gold or other precious metals. Market analysts actually think that was one of the main reasons for such a huge spike in the cryptocurrency value over the last month. In fact, other safe-haven assets were trading at record prices as well, but not as impressive as Bitcoin.