Though volatile at times, Bitcoin has gained in value considerably since its introduction. Moreover, its rise has largely been unaffected by COVID. Bitcoin has more than doubled its market value since January, partly due to central banks’ easing of interest rates which have shown to affect the popularity of cryptocurrency. The natural limits of the currency – only 21 million Bitcoins are allowed to be in circulation – has given the currency its nickname “digital gold”.
In this context, and as digital literacy improves across society, it is perhaps understandable that more senior citizens are channeling their SMSFs (self-managed super funds) into Bitcoin. This current trend has helped Bitcoin rise to a value of around $25,000 – near its 2017 high of $27,000.
As pointed out by Caroline Bowler, former investment chief of BTCMarkets, Bitcoin’s popularity used to predominantly rely on young male investors. Now, however, this trend is shifting and older people above 50 are showing interest, including women. These older people are putting aside about 5% of their SMSF portfolios into Bitcoin.
In the past, Bitcoin was worth as little as $100, making it as lucrative an early investment as Apple, Google, Amazon, or Tesla turned out to be. Though the gains may be bumpy along the way, many investors continue to feel that Bitcoin will continue to deliver excellent value over time.
Indeed, a recent forecast by a senior Citibank executive estimates that by the end of next year, cryptocurrency will increase more than 10x over its current value. Whether or not that happens, Bitcoin’s days in the sun are likely not over yet, and the currency’s resilience during the COVID crisis have convinced many that it is here to stay.