Bitcoin has had a phenomenal start to 2021, topping $40,000 per Bitcoin for the first time.
Right now, with retail investors increasingly eyeing bitcoin in light of its recent gains, new research shows how bitcoin “whales” accumulated a huge number of bitcoin tokens in December, helping the bitcoin price to never-before-seen highs.
This massive bitcoin accumulation helped the bitcoin price to soar fifty% through December, with the price rise accelerating in the new year. The bitcoin price has added a further forty% in the first week of 2021 alone.
Meanwhile, bitcoin’s status as “digital gold” has risen in recent months as governments around the world flood markets with unprecedented levels of newly printed cash – leading to a surge of big-name investors naming bitcoin as a potential hedge against inflation.
Now, as Bitcoin and cryptocurrency investors strive to call just how far this already-huge rally will run, Ethereum cofounder Vitalik Buterin has discovered what he thinks is actually an “underrated” bull case for crypto. “One of the more underrated bull cases for cryptocurrency that I have always believed is merely the basic fact that gold is actually lame, the younger generations understand that it’s lame, and that nine trillion has going somewhere,” Buterin wrote in a recent 2020 summary blog post.
Despite these expected “bumps,” most in the bitcoin and cryptocurrency space are predicting the bitcoin price will continue to rise over the long term.
What may perhaps basically help to make this time different, nevertheless, is not that Bitcoin rates hit new highs in 2020 and finished the year with a mind of steam. It’s that the cryptocurrency succeeded in its first trial by fire.
What Exactly Is Bitcoin?
Let’s review the basics:
The first mention of a product called bitcoin was in August 2008 when 2 programmers with the help of the names Satoshi Nakamoto and Martti Malmi registered a new domain, bitcoin.org. In October of the same year, Nakamoto released a document, considered a white paper, entitled “Bitcoin: A Peer-to-Peer Electronic Cash System.”
And in contrast to fiat currencies, which could be printed on demand, Bitcoin is limited to a total of twenty one million possible coins once it’s completely mined. (Fortunately, it can be split fractionally down to 1/100,000,000th of a Bitcoin, known as a “Satoshi.”) It was designed to be a genuine store of value that could not be manipulated.
As far as whether or perhaps not the prices will continue to increase is a little something that only you can decide. One thing is for certain though; the more investors that begin to trade the currency the more the worth of the coins will increase.
Bitcoin Soars In 2020
Bitcoin values crashed after sharp rallies in 2013 and 2017, but these declines were not precipitated by any serious event spanning multiple asset classes. The digital coin was purely cut by the other edge of speculation’s blade; worries about hacking risks, for example, hampered cryptocurrencies in 2018.
So the bear market of 2020, brief as it was, marked the first time Bitcoin and other digital currencies faced a truly global crisis that threatened many kinds of investments.
Those lows were short-lived, however. Digital currencies bounced hardest off the bottom, and Bitcoin turned positive by April.