On Tuesday, the price of bitcoin reached a record high of over 50,000 USD and the major driving force behind this massive surge in BTC price is the involvement of worldwide corporate giants in digitalized monetary advancements. These companies aren’t just adding crypto alternatives for their users’ benefit but also paying their staff in the currencies, adding it to their balance sheets, and even investing corporate cash into the cryptosystem.
The high on Tuesday was 50,389 USD. This was recorded to be a 3% rise in prices that a bit past 7:30 AM ET. This was the analysed by Coin Metrics.
Recently, well-known companies like Tesla, MasterCard and BNY Mellon have made bold steps into cryptocurrencies. Tesla purchased $1.5 million worth of BTC and announces to add the currency so its balance sheets. They even explained that they would soon accept cryptocurrencies as payment for their cars.
MasterCard, on the other hand, plans to open up its services to suit crypto merchants all over the world. BNY Mellon has already done same for their users.
In my opinion, these companies are not just enlarging their outreach of users but are heavily impacting crypto prices. They are seeking high value resources like crypto assets for their massive corporal investments.
I am myself, and the public in general have also speculated whether the other companies will soon follow in the crypto path, especially since Tesla went crypto. Uber for instance, they had initially discussed the idea of buying Bitcoin. At the time, the idea was dismissed, but now, they are looking forward to it, but no details have been disclosed.
This indicates that as more companies especially the corporate giants of today adopt cryptocurrency features they push smaller businesses andindividuals into doing the same. Seeing as the bigger companies are doing it, it just makes sense that younger businesses follow suit in order not to be left behind in business advancements.
A lot of people also see where is this surge as regards to that of 2017 with bitcoin. Back then, there was a massive surge and prices skyrocketed to 20,000 USD. The success was short-lived a dump brought about an 80% loss of its value.
I say that the circumstances are different because if you analyze the bull run that occurred in 2017, it was driven by the retail crowd. This comprised of small scale traders and individuals. Inthe year 2021, the market is being fueled by institutional traders, large businesses and high profile individuals. Therefore I don’t think there will be a significant price dump anytime soon.
