Bitcoin explained: Its history, why is it so valuable, and will the bubble burst? 10,000, 2017 has seen this cryptocurrency go stratospheric. This looks far from being a bitcoin worth fad, and many who invested several years ago are on the brink of being millionaires. So here’s a quick guide to the currency, why it’s all the rage, and whether the bitcoin bubble will burst.
Bitcoin first went online in 2009 as open-source technology, invented by a mysterious, anonymous individual going by the pseudonym Satoshi Nakamoto. It’s a digital currency, used to pay for items online without any additional bank charges, or government control. Companies and people can buy or sell items using bitcoin as payment. A maximum 21 million bitcoins can be created.
As of June 1 2017, there were 16,366,275 in circulation. It is expected to hit 21 million by 2140. Its price can be followed here. 500-1000 mark for the next four years. In 2017, Bitcoin’s situation changed significantly. Its price had doubled by May, and again by August. By November, it was worth close to ten times its value in January 2017.
11,000 for the first time on November 29 2017. Regulators are imposing fewer restrictions on the cryptocurrency. Major financial institutions are beginning to view bitcoin as a legitimate currency, and not as some Ponzi scheme, and this is contributing to the spike in price. 2017 is the year bitcoin went stratospheric.
Many are comparing bitcoin’s rise to the transition from gold to paper money. Banks and institutions simply aren’t used to it, which is why they remain so suspicious. Remember, it was also invented by an unknown who goes under an alias, and the cryptocurrency is hard to trace. 31m theft, which led to bitcoin’s prices temporarily plummeting. Bitcoin also has an association with the black market and the dark web. It’s also been used for everything from fake IDs to sex workers, and has links to money laundering. Once you have a wallet, you’re able to buy bitcoins.
You don’t need to invest thousands of pounds to get one single bitcoin. Instead, you can buy a fraction of one bitcoin. 50 would currently get you 0. To invest, you need to go via a broker. Like a standard currency exchange, brokers charge difference rates for bitcoin.
The website Bittybot compares brokers, with price guides and reliability ratings. It’s also worth noting that international bank transfers might delay the process of purchasing bitcoin. But this requires purchasing high-tech hardware, and involves seriously high electricity bills. For those with infinite funds and patience, this is a handy guide on how to mine. However, if bitcoin is on the rise, who’s to say that other, less well known digital currencies won’t do the same? Some are easier to mine, some are subject severe yo-yo dips in value, and others have only been in the public domain for a few months.
But that doesn’t mean it will continue to rise. Governments are under increasing pressure to delegitimise a currency with links to tax evasion, fraud and the black market. China recently banned bitcoin exchanges, whereas Japan enshrined the currency as legal tender. There’s also the chance that alternatives, such as Etherum, could become more widely accepted than bitcoin.
2,000 in the space of a day. If you have ever been confused by patterns flashing on crypto charts, this crash course on candlesticks will help clear a few things up. 100 of its 2018 low Friday morning as last weeks rally proved to be short-lived. Crypto exchange Bitfinex’s chief strategy officer Phil Potter is leaving the firm, Reuters reported Friday. Friday as the cryptocurrency markets turned risk-averse.