Demand for bitcoins among Czechs rose sharply in January, with interest at least double compared to December. The reason is a significant increase in the value of bitcoin above USD 30,000. Demand increased almost fivefold year-on-year, according to data from Bitstock.com and the Kurzy.cz server.
At the beginning of this year, Bitcoin exceeded the USD 30,000 mark for the first time, and since December 1 last year, its value has increased by 60 percent to the current approximately USD 31,100, ie about 671,000 crowns. In January this year, the cryptocurrency even attacked the USD 41,000 mark (app. CZK 885,000). Over the past year, bitcoin has grown by 350 percent.
However, the bitcoin value is highly variable. For example, he lost about five percent this morning against Wednesday. According to experts, this is a high-risk investment, which, moreover, is increasingly described as part of the current financial bubble. Voices for the regulation of cryptocurrencies are also growing. For example, incoming US Treasury Secretary Janet Yellen said in this spirit that cryptocurrencies could be used for illegal activities. In January, the British Office of Financial Ethics (FCA) warned that people who invest in cryptocurrencies should be prepared for significant losses and also for the possibility that they could lose everything.
According to experts, bitcoin could further strengthen in the coming months. The reason is the current expansionary monetary policy of central banks, which raises concerns about the devaluation of conventional savings and money as such. Falling interest rates and uncertainty in stock markets thus lead some investors to buy gold or cryptocurrencies, which are sometimes compared to gold. Sometimes, despite their high instability, they are even referred to as digital gold.
