After March 2020, bitcoin prices started to surge and it even went past $61,000 briefly. Investors see bitcoin as an alternative asset class, anticipating strong gains, and also a hedge against inflation.
The Sensex and the Nifty made some impressive double-digit gains in the financial year 2020-21 but the dizzying rise of the bitcoin, the world’s leading cryptocurrency, makes their journey look like a crawl at best.
Bitcoin surged 816 percent in FY21 from $6,412.5 on March 31, 2020 to $58,763.7 on March 31, 2021, data available with investing.com shows.
Besides, millennials who are much comfortable and open to digital payments and cryptocurrencies are also fuelling demand for cryptocurrencies.
Recently,Visa Inc allowed the use of the cryptocurrency USD Coin to settle transactions on its payment network. This came after Elon Musk’s Tesla began accepting bitcoin to purchase its electric vehicles.