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Bitcoin booms in value again, topping $18,000

Published: (Updated: ) in Australian News by .

Overnight the now infamous cryptocurrency hit a high of $AUD 18,267 for one Bitcoin, following the announcement that money transfer service PayPal would allow its users to trade using the virtual currency.

Bitcoin is booming again.

Overnight the now infamous cryptocurrency hit a high of A$18,267 for one Bitcoin, following the announcement that money transfer service PayPal would allow its users to trade using the virtual currency.

Using the currency exactly like any other forex, PayPal's 26 million merchants will begin accepting Bitcoin as payment for goods from as early as February 2021.

READ MORE: Bitcoin surges during COVID-19, doubling price in four months

It's yet another arrow in the bow for Bitcoin, which has seen considerable success during the COVID-19 pandemic as investors look to currencies that are not aligned with any national power.

In March, the cryptocurrency was trading as low as $8736 per coin – meaning that in just seven months it has added some 110 per cent of value.

The total market is now worth an eye-watering $337.1 billion.

READ MORE: Woman charged over 'Australian first' Bitcoin cybercrime

For context, the highest price Bitcoin ever reached was $25,037 on December 11, 2017, during the "bubble boom" that saw early adopters gain widespread notoriety for trading their Bitcoin for Lamborghinis, high-end property and fame.

Nigel Green, Chief Executive of deVere Group and cryptocurrency advocate, said Bitcoin is growing in legitimacy every day.

"Unbelievably there are still some financial 'experts' and financial watchdogs who believe that cryptocurrencies are not the future of money," Mr Green said.

"The decision by one of the biggest payment companies in the world to allow customers to buy, sell and hold Bitcoin is yet another example that exposes Bitcoin deniers and cryptocurrency cynics as being on the wrong side of history.

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"Let's be clear: This is a major step forward towards the mass adoption of digital currencies."

READ MORE: Bitcoin's historic 'halving': Why crypto experts are expecting a second explosion in value

The battle for Bitcoin's relevance is one that is not lost on Australia's central bank the RBA, who noted in a 2019 research bulletin that despite its successes, the reliability and scalability (that is, Bitcoin's ability to service a nation of 25 million people) of the currency will stop it from becoming mainstream in Australia.

"Some of the evolution in cryptocurrencies in recent years has been an attempt to address some of the key shortcomings that have prevented Bitcoin from functioning as money," wrote researchers from the RBA's payments division.

"However, it remains the case that no cryptocurrencies currently function as money in Australia, or as widely used payment methods."

READ MORE: Bitcoin soars past $10,000 after US confirms work on a digital dollar

Experts say criminals are less likely to use bitcoin on the darknet following the case.

Explained in five minutes: What is Bitcoin?

1. Bitcoin is a form of online cryptocurrency that allows money to be transferred electronically. It's decentralised, which means no-one regulates or controls it except for market demand.

2. It was created by a group (or a single person) of programmers under the pseudonym "Satoshi Nakamoto" in 2009.

3. Bitcoins are "mined" by computers that solve incredibly complex mathematical equations. Like coal or oil, there is a limited number of Bitcoins available to be mined, estimated to be in the ballpark of 21 million.

4. You cannot mine Bitcoin on your home computer, it requires specialised programs and hardware that have increased the difficulty of mining a Bitcoin.

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5. Bitcoin experienced a dramatic explosion in value in late 2017, before it experienced one of the most catastrophic value crashes ever seen in currency.

Source: 9News https://www.9news.com.au/technology/bitcoin-booms-again-on-paypal-announcement-cryptocurrency-tops-18000/b29cc1f0-5240-41d0-b04e-bd38290d52a2

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Finance Advice 2021