Bitcoin Hits A New Record, Trading At $8000; A Threat To Physical Currency?

The digital currency hit an all-time high record on Monday trading at $8000, making it smash over a 50% hike in eight days.

You will recall that after the crypto had its last spontaneous spike, experts in the crypto business speculated that the US government will begin to crack down on bitcoin, which may ultimately lead to a drastic reduction in its value. Investors were advised against having too much hope on the digital currency. However, once again, bitcoin has failed to prove as disruptive as had been feared.

This spike came after the US payments company, Square Inc. announced that the cash app could now be used to trade in bitcoins freely.

Certain regions in Asia have started to crack down on Bitcoin due to a withdrawn support from banks and other financial institutions. Many dealers have moved their operations to European countries, where laws are considered fair and accommodating. However, this may not last for long, seeing that this may be a threat to the value of the physical currency.

Here in Nigeria, numerous bitcoin doubling schemes have emerged under the guise of investing in bitcoin. As the country continues to contend with hard times, Ponzi schemes appear to be the saviour, with unsuspecting victims, promised ridiculous amounts and returns in bitcoin.

At Luxembourg, 1 Bitcoin was valued at $8197.81, within a few days after a formal announcement and has soared by almost 50% since the last spike on November 12.  

Nigerian dealers in bitcoin have increased albeit prior warning from the Central Bank of Nigeria. Nevertheless, I personally think that the CBN has not declared its stand on trading with digital currencies. One time, it’s speaking against it, another time, it’s supporting the move to set up a blockchain industry committee. Whatever the stance it takes, it has publicly agreed that it cannot stop the use of bitcoin. Many youths have resorted to trading bitcoin as their means of survival in the harsh economy.

Bitcoin keeps proving that its value cannot be undermined. The US government has threatened to begin a crackdown on the digital currency, China and some other Asian countries have begun a crackdown, yet, bitcoin keeps failing to prove disruptive. Could blockchain technology be a threat to physical currency?