December 16, 2020 — Bitcoin has closed above $20,000 and reached as high as $20,450 after an incredible rally that began when it went to $3,800 last March 2020. At this point, Bitcoin is up 434% since then and up 183% since the beginning of the year.
This marks the first time Bitcoin actually hit $20,000. In 2017, it reached as high as $19,893 on cryptocurrency exchange Bitfinex. This translated to Php 1,024,000 based on the exchange rate at that time. At today’s prices, $20,000 is worth Php 962,700.
Bitcoin has been compared to gold as a store of value because of its ability to keep its worth in times of economic uncertainty.
With Bitcoin now at an all-time high again, speculations remain as to where this will lead to. Google Trends data suggests increasing search interest on Bitcoin and “Bitcoin” in the Philippines but not yet at its peak.
Data from Paxful and Local Bitcoins, viewable on usefultulips.org also showed increased volume of Bitcoin transactions in the Philippines in recent weeks.
In an interview with Apryl Albero of Paxful Philippines, the price of Bitcoin does affect trading activities of most as price speculation could enter into play, even for peer-to-peer traders. “If the market is uptrend, even just by listening to the community, traders tend to hold and observe first, see where the market is going.”
“On the other hand, if the market is downtrend, P2P traders can utilize arbitrage by selling BTC at a higher margin globally. And we know that when the market is downtrend, more buyers are coming in,” Ms. Albero added.
Bitcoin All-Time High is Not a Surprise
According to Miguel Cuneta, Co-founder of SCI Ventures, Bitcoin going to a new all-time high again should not have come as a surprise anymore. He cited the numerous price uptrends and downtrends in the benchmark cryptocurrency’s 11 year existence.
Tips for New Market Entrants, Should We Buy Bitcoin At This Price?
Mr. Cuneta noted that the price of bitcoin is the least interesting aspect of it. “Only the price is volatile. What gives it value, which is the network, the protocol, and the integrity of its blockchain, has never been more stable and predictable.”
“I always say don’t invest in anything unless you’ve learned enough about it to make an informed decision, but I also believe Bitcoin is still severely undervalued today,” he concluded, noting that scams are avoidable as long as people do their own research and inform themselves.
For Ms. Abrero, it is important to invest time to learn more about the industry first. “Crypto offers various opportunities, like investing and trading. You can ride the hype but also make sure to do your research,” she said, adding that it is also important to always safeguard one’s account.
“Keep in mind that like in any other industry, there is such a thing as “too good to be true” so keep learning, do your research, and keep an eye out for bad actors in the market. Remember, you have full control of your own account and do not entrust your funds to anyone,” she concluded.
This article is published on BitPinas: Bitcoin is Back to the Top After Reaching $20,000