The reason why Bitcoin and the Bitcoin Investment Trust are rising 2

The reason why Bitcoin and the Bitcoin Investment Trust are rising

What was going on there?

Bitcoin, a prominent cryptocurrency, is trading above $ 9,000 for the first time in more than a year. 17.6. By 10:30 am EDT, bitcoin had risen nearly 18% to just under $ 9,300 in the previous 24 hours.

As we could expect, followed Bitcoin Investment Trust (WKN: A14S73) – It allows investors to buy bitcoins without holding them directly – with a gain of more than 13%.

What does that mean?

After a dark year in 2018 and a drop in investor interest, Bitcoin has recovered significantly in 2019. Bitcoin has increased more than 140% since the New Year.

In general, the rise observed this year seems to be due to the renewed interest of investors for cryptocurrencies. According to recent reports, also Facebook (WKN: A1JWVX) to introduce their own cryptocurrency. According to some sources, cryptocurrency is called GlobalCoin. It will be on the market in 2020 and is a stable digital currency, which means that it is indexed to the US dollar.

Many giants of technology and e-commerce have supported Facebook's efforts. Facebook has companies like Visa, Mastercard and PayPal obliged to support his cryptocurrency. This attention from "Main Street" has enormously increased the legitimacy profile of cryptocurrency as a whole.

And then?

One of the main obstacles preventing Bitcoin from attracting more investors is the legitimacy of the idea that cryptocurrencies can become conventional payment methods for goods and services. Although recent news on Facebook looks promising, it remains to be seen whether the new virtual currency of the social media giant will actually be used on a large scale.

Randi Zuckerberg, former spokesperson for Market Development and Facebook and CEO Mark Zuckerberg's sister, is a board member of The Motley Fool's.

This article was written in English by Matthew Frankel, CFP, and posted on on 17.06.2019. It has been translated so that our German readers can participate in the discussion.

Motley Fool owns and recommends shares of Facebook.