Bitcoin Hits Three-Year High above $16,000

The world's highest cryptocurrency "Bitcoin" by market value posted a rise of $16,157 on Thursday, recording a three-year high.

According to CoinDesk, Bitcoin rose 123% year-on-year, and has gained nearly 50% so far this quarter.

With Joe Biden elected as new U.S. president, his policies will indeed have an impact on fiscal policy over the next four years, which will affect inflation, yet, the Bitcoin will be touted as a hedge.

“On the back of stimulus from the Federal Reserve, we expect investors, who hold cash to continue to buy bitcoin,” said Kyle Davies, co-founder of Three Arrows Capital, adding that more retail participation could be seen when Bitcoin surpasses its previous all-time high of $20,000.

[caption id="attachment_171519" align="aligncenter" width="2051"] Bitcoin/USD chart[/caption]

Recently, the cryptocurrency received certification from many public companies and prominent investors as a store of valuable assets  Moreover, U.S. billionaire Stanley Druckenmiller said on Monday the Bitcoin position will outperform gold in the long term.

Analysts also told CoinDesk that Bitcoin's price may hold for a short time before hovering towards $ 20,000 in December. Other cryptocurrencies such as as ethereum also rose by 1% to $463.94 and litecoin by 2.91% to record $60.82.

To control cryptocurrency inflation, burning currencies is the process by which cryptocurrency developers can remove tokens or coins from circulation, thus slowing inflation or reducing the overall supply of currencies in circulation, limiting the amount of cryptocurrencies to maintain its value.