Bitcoins and other cryptocurrencies were sold in the Czech Republic in January for almost half a billion crowns. This means a year-on-year increase of half. The growing volume is due to the rising price of bitcoin and the rising demand that accompanies it. This follows from the current data of the largest domestic trader Bitstock.com.
According to the Kurzy.cz server, Bitcoin has strengthened by 64 percent since the beginning of the year to the current more than 48 thousand dollars, ie about one million crowns. He has added 43 percent since the beginning of February. It is expected to exceed $ 50,000 soon.
“The rising price of bitcoin is arousing increased interest from investors, including amateur ones, who are helped by easy shopping through Internet and mobile applications. At the same time, there is growing interest in other cryptocurrencies, such as ethereum and the like,” said Martin Stránský, Bitstock.com director.
The growth in demand is also supported by the arrival of well-known investors, such as the recently owner of Tesla, Elon Musk, or the acceptance of bitcoin by the PayPal payment network. For the whole of last year, cryptocurrencies were sold in the Czech Republic for about four billion crowns, which is a third more than in 2019.
The bitcoin value is highly variable. According to experts, this is a risky investment, which, moreover, is increasingly described as part of the current financial bubble. Voices for the regulation of cryptocurrencies are also growing.
According to Purole Trading analyst Štěpán Hájek, Bitcoin and other cryptocurrencies are experiencing a similar boom as in 2017. “The difference between growth at the time and the current situation is in the involvement of large institutions. This trend will most likely not end there, but the rapid vertical development makes the market extremely speculative and risky and can predict a larger correction, “added Hájek.
According to experts, bitcoin could further strengthen in the coming months. The reason is the current expansionary monetary policy of central banks, which raises concerns about the devaluation of conventional savings and money as such. Falling interest rates and uncertainty in stock markets thus lead some investors to buy gold or cryptocurrencies, which are sometimes compared to gold. Sometimes, despite their high instability, they are even referred to as digital gold.
Source: Tyden.cz by www.tyden.cz.
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