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A Bitcoin Boom: November 2020

5 min. readbyVexxit StaffonNovember 25, 2020
Between widespread use of paying with cryptocurrency and a global pandemic forcing people to find digital solutions, Bitcoin doesn’t appear to be going anywhere. In fact, this week it’s breaking records. Is your business prepared?

In this week's news, a Bitcoin boom!

Behind the trending topic this week is the skyrocketing increase in Bitcoin’s price to levels not seen since the boom of 2017. It’s been 11 years since its inception, and if Bitcoin’s price goes over an all-time high of USD $20K, it will set a new record.

So, this has us all wondering - why the boom this week?

A few reasons behind Bitcoin’s rise:

  • Bitcoin is going mainstream with more buyers having deeper pockets.

    • Last month alone, digital-payment giant PayPal began permitting customers to buy and sell Bitcoin from their accounts. With more than 27 million merchants now using PayPal, it’s a big win for Bitcoin.

    • Tech companies like payment provider Square Inc., have begun holding parts of their cash reserves in Bitcoin.

    • This summer, Fidelity Investments, an asset management firm with over $3.3 trillion in assets, announced the launch of its first Bitcoin mutual fund. (Bloomberg.com)

  • The global pandemic is leaving no country untouched, even Antarctica. Central banks are printing fiat currency as fast as they can. With the majority of Governments printing trillions of dollars in an effort to protect their national economies, these inflationary consequences are exactly what leads to investors stocking up on digital assets. (Coindesk.com)

  • An overarching hope that the crypto industry is entering a more mature phase that is less susceptible to crime and hype. (Bloomberg.com)

  • Bitcoin is being seen as a valuable complement to stocks, bonds and commodities for investors. (Bloomberg.com)

  • The global pandemic forcing people to shop online supports a shift to cashless societies - which bodes really well for digital money in whatever form it takes. (Bloomberg.com)

According to CoinDesk, the leader in block chain news:

“A CIO at BlackRock saying on CNBC that [Bitcoin] could take the place of gold to a large extent. An analyst at CITI saying bitcoin could reach $318,000 by the end of 2021. A report from JPMorgan claiming institutions are buying at three times the amount they were in the previous quarter.”

To understand the complexities of cryptocurrency and its regulatory process for yourself or your business, connect with the head of the Cryptocurrency and Blockchain group at McLeod Law, Matthew Burgoyne, through the Vexxit network.

Matthew hosted a free webinar December 10, 2020 at 12PM CT on the subject of:
  • Anti-money laundering legislation in Canada and its applicability to “dealers in virtual currency”

  • Responsibilities of a “virtual currency dealer”

  • Cryptocurrency and securities laws

  • Cryptocurrency and investment contracts

  • Risk management

  • Practical issues facing cryptocurrency entrepreneurs in Canada.

Watch the on-demand webinar at your convenience.


Article references:

  1. https://www.bloomberg.com/news/storythreads/2020-11-18/the-bitcoin-comeback-is-crypto-finally-going-mainstream

  2. https://www.coindesk.com/first-mover-why-is-bitcoins-price-rising-here-are-a-few-possible-answers

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