Bitcoin has surged this morning to over $54,000, promising to climb higher as the market opens.
The popular cryptocurrency faltered in the last week of February off of its high of $57,000 and came to rest around $45,000 at the beginning of March.
This fall prompted companies to start buying up Bitcoin, with MicroStrategy buying another 205 Bitcoin for $10 million on March 5. MicroStrategy is following the lead of industry leaders like Tesla, Mastercard, and NY Bank of Melon, all of whom made large Bitcoin buys early in 2021.
Bitcoin’s meteoric rise has prompted some to suggest that cryptocurrency will soon be widely accepted as a form of payment.
Other investors and advisors caution against the rapid adoption of Bitcoin, citing that it is far too volatile at this point to ever be effectively used as a currency system. Some investors even believe that the the adoption of Bitcoin could prevent national governments from levying taxes properly, ushering in an era of “libertarian anarchism” according to Tim Bond, portfolio manager at Odey Asset Management.
Bitcoin has also raised ecological and energy concerns, given the massive amount of processing power required to mine a Bitcoin. Bond estimates that approximately 55 million metric tons of CO2 are produced directly from Bitcoin mining, which is equivalent to the entire annual carbon footprint of the country of Finland.
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