Bitcoin Hits Another Record High Amid Growing Institutional Interest

Experts Weigh In On Concerns, Benefits Of The Cryptocurrency

As bitcoin's price continues to surge, hitting a new record high of over $63,000, institutional investors are taking notice. In the past few months, several major companies, including Tesla, Square, and PayPal, have announced that they have purchased bitcoin. This increased institutional interest is seen as a sign of growing confidence in the cryptocurrency. However, there are still some concerns about bitcoin. Some critics argue that it is too volatile and speculative to be a viable investment. Others worry about its environmental impact, as bitcoin mining requires a significant amount of energy. CNBC Make It spoke to bitcoin and fintech experts about the common concerns surrounding the cryptocurrency. These critics are journalists, software engineers, policymakers, and academics. One of the most common concerns about bitcoin is its volatility. The price of bitcoin has fluctuated wildly in recent years, and it is not uncommon for the price to drop by 10% or more in a single day. This volatility can make it difficult for investors to hold onto bitcoin for the long term. Another concern about bitcoin is its lack of regulation. Bitcoin is not backed by any government or central bank, which means that there is no protection for investors if the price of bitcoin collapses. This lack of regulation also makes it difficult for businesses to accept bitcoin as payment. Despite these concerns, there are also a number of benefits to investing in bitcoin. One of the biggest benefits is that bitcoin is a decentralized currency. This means that it is not controlled by any single entity, such as a government or bank. This decentralization makes bitcoin more resistant to censorship and manipulation. Another benefit of bitcoin is that it is a global currency. Bitcoin can be sent and received anywhere in the world, without having to go through a bank. This makes bitcoin a convenient and cost-effective way to send money internationally. Overall, there are both risks and rewards to investing in bitcoin. It is important to weigh the risks and benefits carefully before making a decision about whether or not to invest in bitcoin.

Values of other cryptocurrencies such as Dogecoin have risen and fallen even more sharply.