Bitcoin closing in on $50,000

PanARMENIAN.Net - Bitcoin hit a new record high $60 shy of $50,000 on Tuesday, February 16, extending a sharp rally that has been mostly fuelled by big investors beginning to take digital assets seriously, Reuters reports.

The first and most famous cryptocurrency, bitcoin hit $49,938 and has gained roughly 70% this year, most of that after electric carmaker Tesla said it bought $1.5 billion in bitcoin and would accept the currency as payment.

Tesla’s move was the latest in a string of large investments that have vaulted bitcoin from the fringes of finance to company balance sheets and Wall Street dealing desks, as U.S. firms and traditional money managers have started to buy a lot of it.

The soaring cryptocurrency, which was near worthless a decade ago when software developer Laszlo Hanyecz paid 10,000 bitcoins for two pizzas, surpassed $20,000 only in mid-December, but has so far struggled to crack $50,000 after a few attempts.

The cryptocurrency was created by the mysterious Satoshi Nakamoto, whose real identity is unknown and is based on blockchain technology which acts like public ledger of transactions. It began circulating in 2009, mostly among speculators - something which is beginning to change.