On Thursday, November 12, world cryptocurrencies are confidently rising in price during global trading.

In the middle of the day, the bitcoin rate showed an increase of about 4% and at the moment reached almost $ 16,120 per coin.

The value was the highest since January 2018.

At the same time, the total capitalization of the electronic money market increased by more than $ 5 billion - up to $ 457 billion. Such data are provided by the Coinmarketcap portal.

Note that over the past month, Bitcoin has risen in price by 40%.

Amid increased uncertainty in the global economy in connection with the pandemic, many investors have become more active in buying cryptocurrency as a reliable means of saving money.

Alexander Khvoinitsky, marketing director of the cryptocurrency p2p platform Chatex, spoke about this in an interview with RT.

“Investors see how quickly their savings can devalue, and therefore are looking for an opportunity to save funds.

Many, for example, are starting to transfer money from dollars to gold, but the demand for bitcoins is also growing.

In this sense, the coin has become a full-fledged protective asset - it, like gold, depreciates against the background of relative stability and rises in price with the growth of global tension, "the expert explained.

Moreover, the observed dynamics of the value of bitcoin only fuels the interest of market participants in cryptocurrency, says Anatoly Knyazev, Executive Director of EXANTE.

According to him, in an environment of almost continuous price growth, investors are afraid of missing out on profits and are increasing purchases of the digital coin.

Such actions of the players lead to an additional increase in the rate.

“In addition, investors have begun to view investing in bitcoin as a way to protect their money from the risks of a weakening dollar.

Players expect that the US national currency will be under pressure because of Joe Biden's social policies and his new fiscal package, "Knyazev said in a conversation with RT.

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Let us remind you that presidential elections were held in the USA on November 3.

The vote counting process dragged on, but on November 7, leading media announced the winner of the Democratic candidate Joe Biden.

According to the report of the Committee on Responsible Approach to the Federal Budget (CRFB), if he comes to power, Biden plans to allocate $ 2-4.2 trillion to support the American economy.

Meanwhile, a significant pumping of the financial system with money risks leading to a weakening of the dollar and an increase in the bitcoin rate, analysts say.

According to experts, the actions of global central banks still play in favor of the cryptocurrency market.

In 2020, in order to support national economies, regulators in many countries significantly lowered interest rates and began to pursue super-soft monetary policies.

Against this background, inflationary risks began to grow in the world, and investors began to invest more often in cryptocurrencies.

“The fundamental difference between bitcoin and most other electronic money from national currencies is the limited emission of digital assets.

Therefore, by design, bitcoin is an excellent tool to protect against inflation, which leads to an increase in demand for an asset, "Yuri Mazur, head of the data analysis department of CEX.IO Broker, explained in an interview with RT.

Hidden risks

According to Yuri Mazur, in the near future the cost of an electronic currency can update another record and exceed the $ 18 thousand mark. Moreover, in the first half of 2021, the cryptocurrency can rise in price to $ 20 thousand, the expert believes.

At the same time, experts interviewed by RT warn of the threat of a new bubble in the digital asset market.

Experts explain their fears with the halving that happened in May 2020 - a change in the rules for mining bitcoin.

Note that bitcoin exists on the basis of blockchain technology - a single database that contains information about all transactions carried out.

The emission of new crypto-coins occurs due to mining - solving complex mathematical problems and creating a new block of information about transactions in the blockchain network.

For solving this problem, miners receive a reward in the form of bitcoins.

Every year the search for such blocks becomes more difficult and requires more and more computing power, and the mining reward decreases.

So, in 2009 it was 50 bitcoins per block, in 2012 it dropped to 25 bitcoins, and in 2016 - to 12.5.

In May 2020, the remuneration of miners was again halved and reached 6.25 bitcoins.

“It is worth noting that both in 2013 and in 2017 bubbles were inflated in the cryptocurrency market - that is,

precisely in the years after the halvings.

It is possible that this scenario will repeat itself this time, ”Anatoly Knyazev noted.

Recall that cryptocurrencies caused a global stir in the second half of 2017.

Then, in less than six months, bitcoin rose in price almost tenfold, to $ 20 thousand. However, even then many economists began to seriously talk about the risks of a financial bubble.

Experts' fears were confirmed in 2018.

From January to December, the bitcoin rate fell by almost 80% - from $ 20 thousand per coin to the level of $ 3-4 thousand.