According to Purple Trading analyst Štěpán Hájek, the remarkable resistance of bitcoin continues in some places, and the growing demand for cryptocurrency has reached its highest level since December 2017. Bitcoin is currently trading at around USD 17,700, ie CZK 393,000, and this week $ 400.
“At the moment, however, many investors warn against too rapid a rise in the price, which is reminiscent of 2017. If a rapid fall follows again, it will depend on how easily the price gets above the $ 20,000 mark. However, if the price stabilizes close to its record levels, it may mean finding a new equilibrium price, ”Hájek said.
Tough restrictive measures due to the pandemic are destroying the global economy, which is likely to lead to further reactions by central banks and governments, according to BH Securities chief economist Štěpán Křeček.
“The result can be a devaluation of standard currencies, which of course adds to bitcoin. An important message was also brought by the payment service PayPal, which intends to accept bitcoins, “he noted. However, he pointed out the high price variability and the high share of demand from speculators who do not take bitcoin as a long-term investment and just want to make money quickly.
Demand for bitcoins, according to Bitstock.com director Martin Stránský, has risen by about a quarter in the Czech Republic in the last two months. “In addition to a quick assessment of interest, there is also the fact that it is increasingly being accepted by traders such as Alza.cz. In addition, our clients can conveniently control their bitcoin account via a mobile application, ”added Stránský.
In the first half of this year, the Czechs bought bitcoins and other cryptocurrencies for 1.8 billion crowns. That’s about 20 percent more than in the same period last year.
Bitcoins and other virtual currencies
There are many virtual currencies. One of the oldest and currently the most popular are the so-called bitcoins. They were created in 2009, but have enjoyed greater popularity in recent years. This currency was designed so that it could not be influenced by any government or central bank.
Cyber coins are “minting” a network of computers with specialized software programmed to release new coins at a steady but declining pace. The number of coins in circulation is expected to reach 21 million in the end, which is to be around 2140.