2021 brought record high Bitcoin prices. He is also likely to have an exceptionally good 2022. The upward pace indicates that its price can reach up to $ 100,000. That's a lot. At the very beginning, Bitcoin cost less than one dollar. This time has passed rather irretrievably. With its passage, the price of Bitcoin continued to rise to its current considerable size. In principle, the end of virtual currency could occur in the event of a speculative bubble burst.
A brief history of the Bitcoin rate.
It is the first digital currency whose beginning is dated 2008. Its creator is considered to be Satoshi Nakamoto. Over the years, Bitcoin has gained an increasingly established position and enjoyed increasing popularity. In 2010, the first Bitcoin exchangewas established. Many of the concepts created as a result of the interest in cryptocurrency have strengthened its popularity around the world and strengthened its position in the markets. In Germany, it was recognized as a full-fledged means of payment, and Denmark exempted Bitcoin trading from tax.
Bitcoin is a deflationary currency. Its maximum amount in circulation is 21 million. Currently, there are about 17 million in circulation. It cannot be "reprinted" as in the case of traditional money. The cryptocurrency was based on Blockchain using the SHA-256 encryption algorithm. The transaction confirmation time is 10 minutes. The average number of transactions made is 7 per second.
Features of Bitcoin.
It is a very modern, decentralized means of payment, available on the Internet. It does not have a central issuing institution. From this follows its independence from banks and states. Bitcoin "does not know" what boundaries are. What's more, payments made with its use are very fast and do not require currency conversion. Another advantage that accompanies cryptocurrency is anonymity. Its system works in a P2Pnetwork, without managers and intermediaries.
How to start mining Bicoin?
Bitcoin mining is one of the most talked about financial topics on the Internet. Such a process contributes to the development of cryptocurrencies, in exchange for a reward in the form of new units. The popularity of this subject is influenced by the constantly increasing demand, and its price tempts potential investors. Mining Bitcoin, however, is not as simple as with altcoins. Despite this, it can still be a source of income.
In short, Bitcoin mining involves performing complex mathematical calculationsto obtain new units of digital currency. Transactions are confirmed in groups, or otherwise known as blocks. Each verified block is approved, and the transactions contained in it are added to the blockchain.
Despite the simple overtones, obtaining new Bitcoins is very difficult, due to their complexity. Hence, not everyone can solve them at a fast pace, mainly due to hardware limitations. Although at the beginning it was possible to mine Bicoin with the help of a home computer, now it is rather impossible due to the lack of hardware power.
The world is crazy about Bitcoin.
According to experts, the price of Bitcoin will increase as long as people want to buy it. Many people criticize it because they believe that it has no real value or coverage, such as real estate. In the case of banknotes, they are guaranteed by the government. Unfortunately, Bitcoin is bought on the principles of psychology and is mere speculation.
Bitcoin quotes during the crisis.
According to one of the experts, we assess the ever-growing demand for digital money. Moreover, the increasing demand for cryptocurrencies means that they should be subject to supervisory standards. Many observers also see that Bitcoin's quotations have increased tenfold. This is due to the crisis of confidence in traditional currencies and rising inflation. According to specialists, the price of Bicoin can exceed 140 thousand dollars. These are very optimistic forecasts, but their fulfillment would not be surprising.
Bitcoin arouses extreme opinions.
Many experts warn that Bitcoin is an ever-growing speculative bubble. Still, it seems that they can be treated as defenders of the current order of things. Who is right? A good argument is the problem with purchases that can be made with the help of payments in Bitcoin. It is true that the number of shops and offices accepting cryptocurrencies is growing, but there are still relatively few of them. The scenario of bursting the Bitcoin bubble is also warned by financial supervisory authorities. Another enemy of Bitcoin may turn out to be national cryptocurrencies. Their creation will break the principle of independence and weaken trust in independent Bitcoin.
Further development of cryptocurrency.
Regardless of our expectations, the life of the average person will be constantly changing. Bitcoin is one of the manifestations of the trend of technology entering our lives. Some may argue that the fact of being a speculative bubble is irrelevant. It is important that he has started the next stage of technological changes. Is that a good thing? Time will tell in the future.