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Bitcoin Rises to a 2-Year High

Bitcoin (BTCUSD) hit a high during Wednesday’s trading, surpassing $13,840 against the USD. This is a level that cryptocurrency traders have not seen since the start of 2018. 

Bitcoin

This new peak follows last week’s news from payment method giant PayPal (PYPL) as they will begin allowing Bitcoin to be used in their digital wallet. Allowing its 346 million users easy access to the digital currency has large implications for Bitcoin beyond the immediate coin’s valuation.

Being able to purchase from 26 million global sellers using cryptocurrencies will increase cryptocurrency access to individuals who may have never considered using digital currencies as a form of payment. Beyond Bitcoin, PayPal intends to slowly roll out acceptance of Ethererum’s Ether(ETHUSD), Litecoin (LTCUSD), and Bitcoin Cash (BABUSD), which was created after one of Bitcoin’s hard forks. 

Institutions Look to Bitcoin

More mainstream access to digital coins has lifted Bitcoin’s valuation, propped up by attention from Square (SQ), Fidelity, and others. While there are differences between cryptocurrencies, the decentralized nature of these coins means that they can act as a store of value that is not directly connected to any central bank

Questioning PayPal

Some believe that Paypal allowing for its customers to complete transactions using cryptocurrencies is concerning for multiple reasons. 

The first concern is, PayPal has been an opponent of Bitcoin in the past. The second reason is that during the initial rollout of this technology, users will not be allowed to keep their own security keys or transfer digital currencies outside of the PayPal network, questioning whether they can have free access to their assets.

It is unclear if these concerns will change, but traders are anticipating whether this attention from major financial institutions will influence the price of digital currencies over time. 

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Esta información fue redactada por Plus500 Ltd. La información se proporciona solo con fines generales y no tiene en cuenta ninguna circunstancia u objetivo personal. Antes de actuar con base en este material, debe considerar si es adecuado para sus circunstancias particulares y, si es necesario, buscar asesoramiento profesional. No se ofrece representación ni garantía en cuanto a la exactitud o integridad de esta información. No constituye asesoramiento financiero, de inversión ni de otro tipo en el que pueda confiar. Cualquier referencia a desempeños pasados, rendimientos históricos, proyecciones futuras y pronósticos estadísticos no son garantía de rendimientos futuros o desempeños futuros. Plus500 no será responsable del uso que pueda hacerse de esta información y de las consecuencias que puedan resultar de dicho uso. Por lo tanto, cualquier persona que actúe basándose en esta información lo hará a su propia discreción. La información no ha sido preparada según los requisitos legales creados para promover la independencia de la investigación sobre inversiones.