Bitcoin price is ridiculously high, but it will rise further for the time being… Why?

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Although the price of bitcoin, a representative cryptocurrency (virtual currency), is ridiculously high, institutional investors as well as companies are also jumping into the cryptocurrency market, so it is highly likely to rise for the time being, the US economic journal Forbes reported on the 21st (local time).

Forbes predicts that the rally will continue for some time, saying that institutional investors as well as companies are conscious of the fact that bitcoin can become a new means of storing value in the era of inflation (inflation) and are entering the cryptocurrency market.

Starting with Tesla’s purchase of $1.5 billion (1,661.8 billion) of bitcoin, several companies are jumping into the bitcoin market.

Tesla’s purchase of Bitcoin was a way to hedge (avoid) inflation. Tesla chose bitcoin as an alternative while the dollar is still weak.

Tesla’s strategy has hitherto been pretty good. Tesla has already earned $1 billion from its bitcoin investment, which is more than last year’s total car sales, CBS Market Watch reported on the 21st. Last year, Tesla made a net profit of $721 million from sales of electric vehicles.

As a result, other companies are also following Tesla. In a situation where inflation is rising due to the global ultra-low interest rate caused by Corona 19, it is natural to invest in Bitcoin, which is not affected by inflation and is likely to increase in value further in the future.

More and more companies are bound to brighten Tesla’s train. It is expected that companies will always try to have retained earnings in cryptocurrencies such as Bitcoin instead of dollars.

In particular, Amazon has the ability to issue coins directly, not just buying bitcoins. Amazon issues a cryptocurrency called’Amazon Coin’ and can be used in the Amazon ecosystem.

Global companies that maintain a huge online ecosystem such as Amazon as well as Alibaba will be able to issue their own cryptocurrencies.

Even if the price of bitcoin falls, the trend of companies adopting cryptocurrency will not be reversed, Forbes predicts.