Bitcoin hit a new all-time high of $49,716 after a week of positive developments regarding its increased big banks and institutional investor acceptance. From Coindesk:
According to Morgan Stanley’s Chief Global Strategist Ruchir Sharma, “even if Bitcoin’s price pops, as it has before, the rush of 2020 can’t be dismissed as an irrational mania. Cryptocurrencies are still young, they still face growing pains. But they also promise speed, transparency, and low fees that traditional payment channels cannot match. They satisfy a growing demand for a digital alternative to gold, an asset likely to protect investors from massive money printing and the threat of inflation. To younger investors, “crypto” already evokes digital, stable and good, not shadowy and sinister. The rest would be well advised to recognize that the currency world is changing, or risk being left behind.”
* The views expressed herein are those of the author and should not be attributed to the International Monetary Fund, its Executive Board or its management.