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The bitcoin rate has returned to growth again after the collapse last week. The price of the first cryptocurrency exceeded $ 50,000, exceeding the key psychological mark at the moment.

Bitcoin rose 8% in value and traded at $ 51,500 in US trading, reaching its highest level in a week. Last week, its price immediately fell by 21%, after which it began to recover. The recovery of the bitcoin rate is associated, among other things, with the fact that the famous investor Tim Draper shared a positive outlook for the future of the cryptocurrency.

The billionaire venture capitalist rose to prominence in the crypto community when he bought a batch of bitcoins confiscated from Silk Road founder Ross Ulbricht by the US Marshals Service. He bought 29,657 bitcoins at an auction in 2014 for $ 19 million.At the current exchange rate, their value exceeds $ 1.4 billion.

Then Draper said that within three years, bitcoin will rise in price from $ 400 to $ 10,000. Although many disagreed with his prediction, it came true within a few weeks. Remaining optimistic about Bitcoin, he announced in 2019 that the cryptocurrency will grow well above its previous peak of $ 20,000, which it reached at the end of 2017. In 2022 or early 2023, bitcoin will reach $ 250,000, the investor predicted then, although at that time the price of bitcoin was below $ 4,000.

Speaking this week on the Unstoppable podcast, Mr. Draper said he is still sticking to his 2019 prediction, adding that Bitcoin will continue to grow and its price could increase by a factor of 100.

When asked what the next firms could enter the cryptocurrency market, Draper said it could be pension funds, to which more Fortune 500 companies could be added.

Litecoin founder Charlie Lee believes that buying Tesla's bitcoins will revolutionize the US financial system, and many companies will follow Tesla's example.

Elon Musk's company recently bought bitcoins worth $ 1.5 billion. Moreover, Tesla plans to accept payments in cryptocurrencies. However, the car manufacturer said it would not be able to convert the received bitcoins into fiat currency. Lee drew attention to the importance of this statement. According to Lee, when sellers start accepting bitcoins without further selling or converting them, society will begin to abandon the conventional money system. Thus, a circular economy will be formed in which sellers will accept cryptocurrency, make settlements with it, and even use it to pay salaries.



“This is a turning point. One of the richest people in the world believed in Bitcoin and invested 7% of his funds in it. Now thousands of companies will follow Elon Musk. They will have confidence in their actions by seeing how Tesla does it, ”said the founder of Litecoin.



Tesla's Bitcoin investment spurred the first cryptocurrency to rise above $ 48,000. BTC has now corrected and is trading at around $ 46,500. Twitter CEO Jack Dorsey also influenced Bitcoin's rally with the launch of the Bitcoin Node last week. Dorsey is convinced that Bitcoin will dominate the financial system in the future. The interest of ordinary users and corporations in bitcoin is also due to the integration of cryptocurrencies into the PayPal payment system, since bitcoin trading on this platform is becoming more and more popular.

Source: https://currency-rates3.blogspot.com/

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