Popular cryptocurrency Bitcoin surpasses $50,000 for the first time - Here's all you need to know

World's largest digitalo currency Bitcoin on Tuesday surpassed $50,000 for the first time in history as major companies jump to cryptocurrency, reported CNBC.

Bitcoin.com on its website said, "Bitcoin has crossed the psychological $50,000 zone after fighting the region for more than 24 hours. The leading cryptocurrency, in terms of market capitalization, has gained more than 154% since the all-time high in December 2017. At around 7:37 a.m. (EST) bitcoin hit $50,603 per unit on Tuesday."

As Bitcoin hit $50,000-mark, a Twitter user commented, "$BTC Supply at $50k is being absorbed. Remember that above $50k it teleports to $60k."

Recently, Bitcoin and other cryptocurrencies gained momentum due to support it received from various well-known investors and this is a major reason behind Bitcoin's value surge.

Tesla, Inc, the American electric vehicle and clean energy company headed by tech billionaire Elon Musk, has now purchased $1.5 billion worth of Bitcoin.

The aforementioned purchase was confirmed in a filing at the United States Securities and Exchance Commission (SEC), which said that the company bought the said amount in Bitcoin for “more flexibility to further diversify" and "maximize returns on cash".

In essence, once Tesla starts accepting Bitcoin, the company will be the world's first major automaker to accept the cryptocurrency as payment.

Following the announcement, the prices for the digital asset peaked to a record high above $43,000, Bloomberg News reported.

American multinational financial services Mastercard will allow transactions of select cryptocurrencies directly through their network before the end of 2021. Last year, the company had partnered with Wirex and BitPay to create crypto cards that allow people to transact using their cryptocurrencies

“We are preparing right now for the future of crypto and payments, announcing that this year Mastercard will start supporting select cryptocurrencies directly on our network. This is a big change that will require a lot of work. We will be very thoughtful about which assets we support based on our principles for digital currencies, which focus on consumer protections and compliance,” stated Raj Dhamodharan, EVP Blockchain / Digital Asset Products & Digital Partnerships at Mastercard in a blog.

Twitter chief Jack Dorsey, too, stated that he along with Jay-Z are planning on developing a fund for bitcoin development. Initially, the focus will be on bitcoin development teams in Africa and India.

He announced that both have set aside 500 bitcoin (which is valued at USD 24 million on Friday) for that purpose, according to a news report. This new endeavour will be called Btrust.

While Indian government is not very clear on its stand on cryptocurrency, cryptocurrency investors always fear a ban in India. On the other hand, African countries are having mixed views on bitcoin and other crypto-related activities. While the Central Bank of Nigeria has placed a ban on cryptocurrencies, Kenya’s Central Bank wants to switch its base currency to Bitcoin due to depreciation rates of the Shilling, according to various news report.

(With inputs from Agencies)

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