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Bitcoin surges during COVID-19, doubling price in four months

Bitcoin surges during COVID-19, doubling price in four months
Cryptocurrency Bitcoin is rallying heavily during COVID-19 as investors look for alternatives to the traditional safe havens of foreign exchange markets and stock.
In mid-March this year, a single Bitcoin was trading for just A$7741.
Fast forward to today, and one Bitcoin is now worth more than A$15,300 – a stratospheric increase of 97 per cent in just four months.
In fact, if you invested $1 in Bitcoin nine years ago and held on to it through the rapid Lamborghini boom and equally rapid bust, you would have made A$1113 by today.
READ MORE: Bitcoin soars past $10,000 after US confirms work on a digital dollar
Bitcoin is experiencing a second surge of value during the COVID-19 pandemic. (AAP)
Nigel Green, CEO and founder of $12 billion finance giant deVere Group, believes the surge in interest for cryptocurrency comes as investors look for options that aren't tied down to international trade politics.
"Bitcoin, the largest and most influential cryptocurrency, shot past the key $10,000 resistance marker – all eyes are now on the critical $10,500 level," Mr Green said.
"Established Bitcoin bulls and new crypto investors could make this happen this week as tensions heightened between the US and China, the world's two biggest economies.
"Investors are flocking to safe-haven assets, in particular those not tied to any specific country, such as Bitcoin and gold, the latter of which hit record price highs earlier this week."
READ MORE: Bitcoin's historic 'halving': Why crypto experts are expecting a second explosion in value
Crytocurrency is on the rise although experts say criminals are less likely to use bitcoin for illegal activity following the bust of Welcome To Video. (AAP)
Mr Green said a shift towards technology and trading from the comfort of one's home could see Bitcoin rival gold as a long-term prospect during uncertain times.
"Bitcoin is currently realising its reputation as a form of digital gold," he said.
"Up to now, gold has been known as the ultimate safe-haven asset, but Bitcoin – which shares its key characteristics of being a store of value and scarcity – could potentially knock gold from its long-held position in the future as the world becomes ever-more tech-driven."
Recent data showed that against the average return of the globe's five major indices, Bitcoin's return on investment (ROI) was some 70 times higher.
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Bitcoin could become the high-tech safe haven alternative to gold. (iStock)
From June 26, 2015 to June 26, 2020, Bitcoin's ROI was calculated to be 3456.98 per cent, compared to the NASDAQ (96.77 per cent), the Nikkei (11.94 per cent) and the Dow Jones (42.16 per cent).
A month ago Australia Post added to their Post Billpay service, meaning Australians interested in investing in the currency could buy the digital currency at their local post office.
This shift to legitimacy is one reason why Mr Green believes Bitcoin has a future as a safe haven asset.
"Geopolitical issues, such as the US-China spat, will prompt many savvy investors to increase exposure to decentralised, non-sovereign, secure digital currencies, including Bitcoin, to shield them from the turbulence taking place in traditional markets," Mr Green said.
"Cryptocurrencies are widely regarded as the future of money – yet what is less reported upon is that Bitcoin and its peers are increasingly regarded a safe haven in the present."
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