Price of Bitcoin rises past $40K, doubling in amonth

CHARLOTTE, N.C. — First it went through $20,000. Then 10 days later, it broke through $25,000. And then, with barely taking a breath, it crossed $30,000. Now only a few days into 2021, the price of Bitcoin has crossed $40,000.

Nothing’s new with the digital currency in the month since it crossed $20,000 — there’s been no major change in how it can be used. But some investors are now using the notoriously volatile currency as a “store of value,” which is traditionally a title saved for safe haven investments such as gold and other precious metals.

“Will you be able to buy a cup of coffee with Bitcoin? Probably not with the current version of Bitcoin. It’s largely become a store of value,” said Mike Venuto, a co-portfolio manager of the Amplify Transformational Data Sharing ETF, a $391 million exchanged-traded fund that focuses on blockchain technologies and companies that deal with cryptocurrencies.

Media attention to Bitcoin’s rise has only added fuel to the rally. But investors in digital currencies and companies that trade or “mine” them are warning people to be skeptical of Bitcoin’s recent rise and to be braced for a lot of volatility.

While in the last two years companies have embraced the technology that underlies digital currencies such as Bitcoin, a concept known as the blockchain, the actual uses for Bitcoin have not really changed since its rally three years ago. It’s still largely used by those distrustful of the banking system, by criminals seeking to launder money and, for the most part, as a store of value.