Bitcoin was created after the 2008 global financial crisis and initially aspired to overthrow traditional monetary and financial institutions such as central banks.Bitcoin is the world’s first and largest crypto, and it’s showing no sign of slowing down. Bitcoin is a decentralized form of currency meaning it is not regulated by any country or institution, which has led it to become the most popular cryptocurrency in existence.
Invest in Bitcoin and get in on its value before its too late!
- The value of bitcoin reached an all-time high this week. Since its creation, thousands of other cryptocurrencies have been created, such as ethereum, ripple, and tether. Originally used on the dark net, bitcoin has gained popularity over time.
Following wild price swings, bitcoin has over the past year increasingly won the support of small and large investors alike. Cryptocurrency bitcoin, which hit a record high above $66,000 on Wednesday, has been on a roller-coaster ride since it was first launched 13 years ago.
Things You Should Know About BitCoin
As the product of the 2008 global financial crisis, bitcoin initially promoted a libertarian ideal and aimed to overthrow traditional financial and monetary institutions like central banks. The original white paper, issued on 31 October, 2008, was authored by Satoshi Nakamoto, a pseudonym whose identity remains unknown.
One of the main goals of the eight-page document was to allow two parties to make online payments without passing through a financial institution. A first block of 50 bitcoins was created in January 2009 and has grown to 18.8 million units today.
There are only 21 million bitcoins, helping bitcoin’s price to trade way above its rivals. Thousands of other cryptocurrencies have since been created, led by ethereum, ripple, and tether.
Do you want to start mining bitcoins?
Historically, bitcoin was “mined” by using computers to solve complex mathematical puzzles. The number of miners rose as bitcoin’s price soared.
Energy is required for mining, which means the cost of accessing bitcoin can exceed the gain, despite the environmental impact amid global climate change efforts.
In an alternative method, investors can purchase bitcoins using traditional currencies on an exchange platform. The funds are stored in protected virtual wallets, but with hacking still a possibility, some investors hold their portfolios offline.
Why is Bitcoin so popular?
It’s no secret that bitcoin is gaining popularity. And it’s not just among investors; you can now buy everything from a Tesla to alpaca socks using the cryptocurrency!
In 2013, bitcoin exceeded $1000, attracting the attention of financial institutions. Since then, bitcoin has gone through extreme volatility, reaching almost $20 000 in 2017 and then plunging back down.
On the back of a speculative wave, it soared to a record $64 870 in April. Yet, two months later, it traded for less than half that amount, before recovering to reach $50 000 in September.
In the days leading up to the launch of the Bitcoin Strategy ETF, a new exchange-traded fund linked to bitcoin futures rather than directly to the currency, it rose back above $60 000.
Investing in the cryptocurrency could grow with the ETF, which is more accessible to mainstream investors. However, bitcoin’s volatility and long transaction times are preventing its widespread use as a payment method.
Some supporters of bitcoin see bitcoin as a digital store of value rather than a means of payment. Transactions in bitcoin take anywhere from a few minutes to several hours.
The gold that bitcoin’s nemesis, central banks, hold in great quantities would put it in competition with it.
What can you buy with Bitcoins?
As bitcoin gained in popularity, restaurants and shops based in large cities began to accept it as a payment method. Before long, bitcoin was mostly used on the “dark net” to buy illicit products; mainstream search engines weren’t aware of this side of the internet.
Payments group Paypal allowed its US users to conduct bitcoin transactions almost one year ago, as the pandemic fueled online shopping.
Bitcoin is becoming increasingly popular among young people in countries where galloping inflation makes traditional currencies worthless, such as Africa and Latin America.
In September, El Salvador made bitcoin legal tender, becoming the first nation to do so. However, China cracks down on cryptocurrencies trading and mining.
Originally published here
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
