One year ago, on January 10, 2020, Bitcoin was valued at $7,808. And it was recently as October that it was hovering in price in the vicinity of $11,000. But for many and completely out of the blue, the price of Bitcoin skyrocketed past the $41,000 level to attain a new all-time high of $41,660 in the last day.
Bitcoin prices recovered from a multiyear slump in 2020. It breached its 2017 record near $20,000 in November, and it has gone parabolic ever since, sitting well above $40,000 as of this publication.
Bitcoin is on a tear.
Meanwhile, bitcoin’s reputation as “digital gold” has grown in recent weeks as governments around the world flood markets with unprecedented levels of freshly printed cash – bringing about a surge of big name investors naming bitcoin as a potential hedge against inflation.
Today, as Bitcoin and cryptocurrency investors strive to call precisely how much this already-huge rally will run, Ethereum cofounder Vitalik Buterin has revealed what he thinks is an “underrated” bull case for crypto. “One of the more underrated bull cases for cryptocurrency that I’ve always believed is simply the fact that gold is lame, the younger generations understand that it is lame, and that nine trillion has to go somewhere,” Buterin wrote in a recent 2020 summary blog post.
Proponents of digital currencies are exuberant about the potential for 2021 and are providing lofty bitcon price predictions after a monster year that saw highflying Bitcoin prices grab control of the spotlight.
While the general public could possibly be cognizant of its existence, they’re still very much in the dark about how to get started investing in it. This creates the perfect opportunity for you to jump on board this exciting new train and start investing the money of yours into the world of bitcoins.
What The Heck Is Bitcoin?
Back to the beginning:
Bitcoin is a digital currency created in January 2009 following the housing market crash. It follows the tips set out in a whitepaper by the mysterious and pseudonymous Satoshi Nakamoto.? The identity of the person or maybe folks that produced the technique is still a mystery. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government issued currencies.
And in contrast to fiat currencies, which may be printed on demand, Bitcoin is restricted to a total of twenty one million possible coins once it is totally mined. (Fortunately, it may be split fractionally down to 1/100,000,000th of a Bitcoin, known as a “Satoshi.”) It was intended to be a real store of value that couldn’t be manipulated.
Indeed, Bitcoin was invented in 2008 and launched in 2009, just as world governments were printing money to respond to the global economic crisis. A slew of other digital assets followed.
Bitcoin Rages Higher In 2020
Bitcoin prices fell steadily after sharp rallies in 2013 and 2017, but these declines weren’t precipitated by any major event spanning multiple asset classes. While it’s feasible for the charges to fall back down once again, you can find yourself being incredibly wealthy from this investment if you hold out it out long enough.
Cryptocurrencies were hardly immune from the bear turn. Investors first began selling off equities in February as they moved to cash, and perhaps safety plays like gold eventually took a dip in March. But Bitcoin eventually fell, too, crashing hard in mid-March.
Bitcoin bounced quickly, as most of the huge institutional funds moved in once they saw how the bitcoin price continued to move higher.