It’s time for bitcoin’s corporate champions to account for a brutal selloff in the cryptocurrency.
Bitcoin hit a two-week peak just shy of $40 000 on Monday, after another weekend reacting to tweets from Tesla boss Elon Musk.
It’s certainly not at the same scale as a Tesla or a MicroStrategy, but some privately held South African firms have started converting a portion of their cash holdings into cryptocurrencies like bitcoin.
Promoted | It’s no secret that cryptocurrencies are difficult to understand. Yet demand for cryptos is increasing at an accelerated rate after Tesla recently bought $1.5-billion worth of bitcoin.
Bitcoin is closing in on a market value of $1-trillion, a surge that’s helping cryptocurrency returns far outstrip the performance of more traditional assets like stocks and gold.
Bitcoin jumped again on Wednesday to set another all-time high after breaching $50 000 for the first time a day earlier.
Elon Musk’s decision to invest US$1.5-billion of Tesla’s cash in bitcoin is financial dynamite that unites two speculative bubbles. There’s plenty to suggest the move is inadvisable
Elon Musk on Sunday asked about the possibility of converting “large transactions” of Tesla’s balance sheet into bitcoin, according to a Twitter exchange.
MicroStrategy has bought more bitcoin. The company paid $50-million for more of the world’s largest cryptocurrency at an average purchase price of $19 427, it said in a filing.
Bitcoin advocates say this time will be different as the virtual coin surges back to price levels last seen in the wake of the collapse of the cryptocurrency market bubble almost three years ago.