Bitcoin hits $50,000 again thanks to strong demand for digital assets

Bitcoin's rally has it above $50,000 as digital assets are back in vogue. Will investors push its price to a new high?

Bitcoin is back in vogue, with investors buying the plunge towards the $30,000 level. After the market broke above the top edge of a triangle that acted as a reversal pattern, it hasn't looked back.

Naturally, Bitcoin traders have their eyes on the record levels again. In the first half of the year, and especially after Tesla revealed its $1.5 billion investment in Bitcoin, the price of a digital coin reached $65,000.

It corrected down to $30,000, where it found solid support. The rise confirms that investors still value digital assets, and Bitcoin's strength could continue as inflation fears rise.

Commodities are seen as a hedge against inflation. Gold, for example, has been the perfect hedge over time, but it now has real competition in digital assets.

Bitcoin started the trading year at nearly $30,000 and is now up nearly 80%. Gold has underperformed, once again, just as it did in the second half of last year. As a result, investors looking to protect their portfolios against rising inflation levels may find Bitcoin and other digital crypto-currencies more attractive than traditional inflation hedges.

Bitcoin Mining - An Environmentally Sustainable Industry

Digital assets are part of the offering of many brokerages, eager to attract new clients. The rise of digital corners has led to tectonic shifts in the traditional financial industry, with the younger generation of traders embracing Bitcoin and blockchain.

Bitcoin's decline from its first-half highs was driven by comments from Tesla's Elon Musk regarding its energy consumption. Bitcoin mining is an energy-intensive industry, but it turns out that energy consumption is comparatively negligible when interpreted as a share of the world's total energy.

The Bitcoin Mining Council was formed earlier this year with the goal of monitoring the energy consumption of Bitcoin miners. Transparency is essential for investors in any market, and Bitcoin enthusiasts have welcomed the initiative.

Going forward, digital assets are expected to continue to grow. Bitcoin, for example, is viewed the same way the Internet was in 1997 - few people really understood its potential at the time. If that's the case, the use of the digital wedge will rise sharply, as will the tailwind that supports its price.