PayPal, Mastercard and JPMorgan boost optimism around bitcoin, but opinion on cryptocurrency is divided

Bitcoin’s latest rally started on October 21 when PayPal said it would allow the use of bitcoin as well as other cryptocurrencies such as Ethereum and Litecoin

Analysts at JPMorgan compare bitcoin with gold, saying it could compete more intensely with bullion as an ‘alternative’ currency over the coming years

Reading Time:3 minutes

Bitcoin advocates argue that supplies of the cryptocurrency and gold are finite unlike cash that can be printed in unlimited quantities. Photo: Reuters

Published: 12:49pm, 8 Nov 2020Updated: 12:48pm, 8 Nov 2020

Bitcoin’s rally above US$15,000 has reignited debate over whether the cryptocurrency is so-called digital gold or a perilously risky bet as investors grapple with the coronavirus pandemic.

The world’s most popular virtual unit has gained over 30 per cent in value in almost three weeks up to Friday, taking it close to its December 2017 peak when it reached nearly US$20,000.

After a roller-coaster ride on markets since then, it began its latest meteoric rise on October 21, after US online payments provider PayPal announced that it would enable account holders to use cryptocurrency.

“It is the validation of a market which was still relatively uncertain a few years ago,” said Simon Polrot, president of Paris-based cryptoassets association ADAN.

Bitcoin was created in 2008 by the pseudonymous Satoshi Nakamoto, and marketed as an alternative to traditional currencies.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x