Bitcoin’s massive rise
The digital currency Bitcoin rocketed to a record high again this year to reach the price of $44.023,80 a coin. This comes after Tesla founder Elon Musk send few tweets again about cryptocurrency.
The US electric car manufacturer Tesla is now also relying on the cryptocurrency Bitcoin on a large scale. The company CEO Elon Musk has announced that it has invested $ 1.5 billion in the digital currency. The announcement caused Bitcoin price to rise to more than $ 43,000 within minutes.
Musk had already made his stance towards the currency clear a few days ago: he wrote #bitcoin in a nutshell on his Twitter profile.
The value of Bitcoin has risen sharply in recent months, at the beginning of the year, the price had climbed to more than $ 40,000, but then fell sharply again to trade at around $34,000.
An other reason for the rise of was the announcement by the PayPal at the beginning of January to allow users to use cryptocurrency in its platform.
Behind the Bitcoin is the idea of a currency that exists independently, in a complete autonomy, decentralization and no control from the central banks or monetary policy, everything happens in the blockchain, Unlike traditional currencies.
Eleven years later the price of bitcoin kept going only in one direction which is up, at the moment it is trading at
The first bitcoin was traded in 2009 for around $0.08 per coin. Eleven years later the price of bitcoin kept going only in one direction which is up.
Bitcoin is issued and managed by its users themselves, so there is no central bank, instead, all transactions are made without intermediaries and then stored in a common database called blockchain. The creation of new bitcoins is complicated operations, and take up time to be cleared. Around 18.5 million Bitcoin have been already mind from the 21 million Bitcoin in existence.
A limited supply therefore makes it more attractive for investors, institutions and fund manager. This growing demand will keep pushing the price higher. Analysts at JP Morgan have recently predicted the rise of Bitcoin to over $146K in the long term based on the assumption that the cryptocurrency will grow in popularity as an alternative to gold.