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Bitcoin surges yet again as Mastercard jumps on bandwagon

  • February 15 2021
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Bitcoin surges yet again as Mastercard jumps on bandwagon

By Cameron Micallef
February 15 2021

Bitcoin is continuing its 2021 surge, booming to a new record high after Mastercard said that it would support the cryptocurrency.

Bitcoin surges as Mastercard jumps on bandwagon

Bitcoin surges yet again as Mastercard jumps on bandwagon

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  • February 15 2021
  • Share

Bitcoin is continuing its 2021 surge, booming to a new record high after Mastercard said that it would support the cryptocurrency.

Bitcoin surges as Mastercard jumps on bandwagon

The company announced late Wednesday in the United States that it will support “select cryptocurrencies” directly on its network at some point later this year.

“Our philosophy on cryptocurrencies is straightforward: It’s about choice,” Raj Dhamodharan, an executive vice president at Mastercard, wrote in a post late Wednesday.

“Mastercard isn’t here to recommend you start using cryptocurrencies. But we are here to enable customers, merchants and businesses to move digital value – traditional or crypto – however they want.”

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Off the back of the news, the most well-known cryptocurrency, bitcoin, is now trading at a record high $61,000 a coin.

“The crypto asset world is bursting into the realms of traditional finance at a staggering pace. Major payments provider Mastercard announced it will support digital assets directly via its own network, signalling yet another major milestone for the industry,” says Simon Peter’s eToro’s crypto asset analyst. 

“Mastercard is the operator of the second-largest network of credit cards in the world, and for a business of that size to be making this decision shows the long-term trend for crypto asset adoption."

Mr Peter believes the real world applications for bitcoin, with major businesses starting to adopt the currency, will only continue to drive its value further. 

“While we may see short-term upside in the price of bitcoin and other crypto assets as a result of this, Mastercard’s announcement – coming so soon after Tesla’s own comments earlier this week – has real long-term implications for bitcoin and its peers.

“Bitcoin and its peers are, quite simply, going to be part of the mainstream financial universe sooner rather than later. I expect demand to surge and see bitcoin prices hitting at least $70,000 by the end of this year,” he said.

A year ago, in February 2020, bitcoin was trading at $15,500 per coin, with the latest rise seeing the alternative asset class grow by more than 300 per cent in a year.

Bitcoin surges yet again as Mastercard jumps on bandwagon
Bitcoin surges as Mastercard jumps on bandwagon
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

author image
Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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