The cryptocurrency, Bitcoin, has risen 20 percent over this past week and is up 327 percent over the past 12 months. Although Bitcoin’s all-time high was USD$64,899 is is currently at USD $40,267 and may have bucked a recent correction as the U.S. Government continues to throw U.S. Dollars (fiat currency) into the hands of Americans and American businesses.
Bitcoin took a hit when Elon Musk announced that Tesla had cancelled plans to accept Bitcoin as payment for Tesla vehicles and then announced the company will accept it in the future. In the same announcement, Musk stated that Tesla had sold approximately 10 percent of its Bitcoin which removed speculation the company had sold all its Bitcoin from its corporate treasury.
“Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market,” Musk stated on Sunday, June 14, 2021. “When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.”
The U.S. Government has spent over 8 trillion dollars this past year which has far exceeded the revenues it generates from taxpayers, which has added to the debt. When this happens, it will often cause alternative forms of currency such as gold or cryptocurrencies like Bitcoin to rise in value as Americans believe the U.S. Dollar’s value is at risk.