For many reasons 2020 will loom large in future textbooks on financial history. Let me tell you why. If you don't want to wait for bigger price and want to sell bitcoin to paypal instant
This year saw the biggest drop-off in economic output since the Great Depression, the biggest spate of money printing in the Federal Reserve’s 107-year history spurred by a coronavirus pandemic, an epochal shift toward remote working and negative prices for crude oil futures.
Perhaps as important in the pantheon of monetary milestones, 2020 saw the first real signs banks, money managers, insurance firms and companies started to embrace fast-growing markets for cryptocurrencies and digital assets.
At the start of the year, bitcoin was still considered a fringe investment, disparaged by the likes of the billionaire investor Warren Buffett as having “no value.” By the end of the year, however, bitcoin has nearly quadrupled in value, reaching an all-time high above $28,000 and thrusting itself into the center of conversations among big investors and Wall Street firms.
Some bitcoin proponents saw the success of the cryptocurrency and its underlying blockchain network as validation of a landmark technology that might forever change finance.
But what changed bitcoin’s price trajectory in 2020 was its growing adoption as a hedge against the potential currency debasement that might come from trillions of dollars of coronavirus-related stimulus payments from central banks and governments around the world.
The thesis derives from the hard-coded limits on bitcoin’s supply, which are programmed into the underlying blockchain network. Unlike government currencies that can be issued subjectively and at will by central bankers, only 21 million bitcoins can ever be created.
And bitcoin’s growing adoption as an asset that trades based on macroeconomic trends meant it provided investors and analysts with as good a prism as any through which to view the year’s monumental economic developments and rapidly shifting financial landscape.
Eventually, markets from stocks to bonds became hooked on the expectation that stimulus would be provided in amounts needed to keep investors from suffering losses deep enough to impair confidence and derail the economic recovery. As national authorities and monetary policymakers kept promising more and more stimulus, bitcoin’s price in 2021 went up.
Whether due to causation or correlation or merely wishful thinking, the bitcoin market, long viewed as a hotbed of volatility and unfettered speculation, seemed to rise in 2020 with nearly every new headline.
The story of bitcoin in 2020 might be a classic tale of how a new technology emerges at the fringe, gradually wins the attention of a few well-heeled and respected money managers, then suddenly gets swept up by the rest of Wall Street, heralded as the next frontier for savvy investing and fast profits.