0
Please log in or register to do it.

Bitcoin (BTC) has seen significant gains this year, rising 26.65% year-to-date. As of 8 a.m. ET, one bitcoin is valued at $57,423.61. The cryptocurrency reached its highest intraday price of $73,750.07 on March 14, 2024, marking its all-time high. Over the past year, the lowest intraday price was $24,930.30 on September 11, 2023, showcasing bitcoin’s volatility and growth potential.

Bitcoin’s Evolution and Impact

Launched in January 2009, bitcoin has revolutionized global financial markets, achieving a market capitalization of $1.13 trillion. It has become a popular alternative to traditional fiat currencies, which are prone to devaluation due to inflation. Bitcoin operates on a blockchain network, allowing users worldwide to conduct transactions without relying on banks or financial institutions. The security of bitcoin transactions is maintained through cryptography, with miners validating transactions and adding them to the blockchain.



Supply and Demand Dynamics

Bitcoin’s price is determined by supply and demand since it doesn’t represent ownership of physical assets or generate revenue. The bitcoin network releases new coins to miners as rewards for verifying transactions. The total supply is capped at 21 million BTC, making demand the key driver of its price. Bitcoin’s history dates back to its first recorded price in 2009 when 5,050 BTC were exchanged for $5.02, valuing it at about $0.00099 per BTC.

The Halving Mechanism

Bitcoin undergoes a halving process approximately every four years, reducing miners’ rewards by 50%. The next halving, expected in 2028, will decrease the block reward from 3.125 BTC to 1.5625 BTC. This mechanism limits bitcoin’s supply and can theoretically support its price. Historically, bitcoin prices tend to rise after halvings, although this is not guaranteed.

Price History and Recent Trends

Bitcoin’s price trajectory has seen several notable peaks and troughs. It first reached $1 in 2011, $1,000 in 2013, and surged to $20,000 in late 2017. After a downturn in 2018, bitcoin saw another boom during the COVID-19 pandemic, driven by increased disposable income and government stimulus. Despite a challenging 2022 due to rising interest rates and industry overleverage, bitcoin rebounded in 2023. On March 14, 2024, bitcoin achieved an all-time high of $73,750.07.

Buying and Storing Bitcoin

Investors can purchase bitcoin on exchanges like Binance, Coinbase, and Kraken. Bitcoin must be stored in wallets, which can be hardware devices resembling USB sticks or software applications. Hot wallets, connected to the internet, are convenient but riskier, while cold wallets offer more security by being offline.

Bitcoin ETFs

Investors can also gain exposure to bitcoin through exchange-traded funds (ETFs). In January 2024, the SEC approved several bitcoin spot ETFs, which hold the cryptocurrency directly. This approval represents institutional validation of bitcoin. Notable bitcoin spot ETFs include Grayscale Bitcoin Trust (GBTC), VanEck Bitcoin Trust (HODL), and Fidelity Wise Origin Bitcoin Fund (FBTC).

China's Central Bank Faces Policy Dilemma Amidst Market Pressures
Ripple’s July XRP Sales Spark Market Turbulence

Reactions

0
0
0
0
0
0
Already reacted for this post.

Reactions

Your email address will not be published. Required fields are marked *