The price of bitcoin, the world’s largest, oldest and most popular cryptocurrency, hit a record high of $65,000 in mid-April this year.
Three years ago, this was the time when its trading was approved for the first time in the American stock market, Wall Street, and then its price reached the sky. After seeing a lot of bad conditions in the middle, its price is touching new heights.
Like other ways to keep money safe in times of uncertainty, This digital currency has benefited greatly from the coronavirus pandemic. The price of gold, silver, platinum has increased manifold during this period and bitcoin has also joined it. Due to the special structure of bitcoin, now more bitcoins are not being made in large numbers, so the business of bitcoins has intensified.
How Does Bitcoin Work
It is a digital currency. It is not linked to any bank or government and can be spent without revealing identity. These bitcoin coins are made by users. For this, they have to “mine” them.
To “mine” they have to give them the ability to calculate and in return they get bitcoins. Bitcoin coins can also be bought on the stock exchanges for US dollars and other currencies. Bitcoin is used as a currency in some businesses, although its popularity has stagnated over the years.
In December 2017, bitcoin futures were allowed to trade on the American stock exchange Wall Street.
Their trading (buying and selling) was approved by the Chicago Mercantile Exchange and the Chicago Board of Op Trade.
The interest in bitcoin was so high that as soon as it was allowed to trade, there was a huge jump in its prices. At the beginning of 2017, the price of this currency was $ 1000, which increased to 19,783 at the end of the year.
However, after the commencement of trading, its futures declined sharply over the next few months. A year later, its price dropped to $4000. Investors and those interested in bitcoin said that speculation and media fascination were the main reasons for the 2017 boom.
According to Coinbase, the price of one bitcoin is approximately $61,719.20. Coinbase is a leading digital currency exchange that also trades other tokens and currencies.
However, the price of bitcoin is volatile and sees fluctuations of hundreds or even thousands of dollars within a week. It was priced at $51,205.16 a month ago and $65,000 a year ago.
Bitcoin is a very risky investment and does not behave like traditional investment methods such as stocks or bonds unless the buyer holds the currency for several years.
The Associated Press, for example, bought $100 worth of bitcoins so that it could monitor the currency and report its use in business. The expenditure of this portfolio has reached its principal by going this month.
Why is Bitcoin so popular
It’s actually a series of computer codes. Whenever it goes near a distance from a user, digital signatures are done on it. Transactions can also be done by keeping themselves confidential. For this reason, it is very popular among free-thinking people, techno enthusiasts, bookies and criminals.
It is kept in a digital wallet. This wallet can be obtained either online through an exchange like Coinbase or through special software on an offline hard drive. The bitcoin community knows how many bitcoins there are but where they are can only be guessed about.
Who use it
Some businesses are using this digital currency because Overstock.com accepts payments in bitcoin. The currency is so popular that blockchain. According to the info, on average, 3,00,000 transactions take place every day. However, its popularity is less than that of cash or credit cards.
In many people and businesses, it cannot be used for payment.
Security Of Bitcoin
The bitcoin network relies on a few people’s longing for the collective good. Some tech-savvy people called miners keep this system honest by putting computational power into the blockchain.
It keeps track of every bitcoin transaction. In this way, it prevents them from being sold twice and the miners are given bitcoins as gifts for their efforts. As long as miners keep the blockchain secure, there will be no fear of copying it to become a counterfeit currency.
It’s a mystery. It was started in 2009 by an individual or a group working under the name of Satoshi Nakamoto. At that time only a few enthusiasts were using Bitcoin. When more people’s attention went to that side, Nakamoto was taken off the map.
Although this did not make much difference to the currency, it continued only on its internal arguments.
In 2016 an Australian entrepreneur introduced himself as the founder of bitcoin. However, a few days later, he said that he “did not have the courage” to reveal the evidence. Since then no one has taken responsibility for this currency.
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