At the time of writing, Bitcoin was approaching a new high of $20,000 USD per bitcoin. What has changed since the last time this high was reached?
The Covid19 situation has changed the way people do many things. Technology has been thrust into the forefront of everyday living. Things that used to be done physically are now being pushed into the virtual world – schooling, eating in restaurants, entertainment, work and the purchasing of many goods and services. The natural fit to this kind of agenda is using cryptocurrencies. Why? They are an extension of the technologically driven world. They also can be used for competition to the existing financial system at a potentially lower cost.
The last time Bitcoin reached its record high, many institutions were demonizing cryptocurrencies as methods of payment used by criminals for terrorism, money laundering and illicit drug sales. At this time, Mastercard and Visa are linking cryptocurrencies to their credit cards, and Paypal is now accepting Bitcoin to be used on its platform. Many governments are talking about issuing cryptocurrency versions of their traditional currencies. There was also a push from Facebook partnered with major banks and other institutions to issue a cryptocurrency called Libra which did not go very far but the intention is there.