Why the price of Bitcoin has increased so much

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A crypto lover...wanna to do something new

3 years ago

In community: Cryptocurrency and Blockchain(7b7f)

Topics: Bitcoin, Cryptocurrency, Crypto

Bitcoin, the world's largest cryptocurrency, has surpassed $60,000 for the first time. Bitcoin was priced at 64899$ on April 14, 2021. In last 1 year, the price has increased by 458.35% percent. The total value of this virtual currency market is now 1.0 trillion. (1 trillion = 1 lakh crore)

Experts say that the rise of Bitcoin is due to the passage of US President Joe Biden's Corona package. The 1.90 trillion bill was passed in Congress on March 2021.

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The price of bitcoin is rising rapidly this year. The price of this cryptocurrency has tripled since the end of last year. Earlier last week, the total value of this virtual currency market again exceeded 1 trillion dollars. Analysts also attribute the rise in prices to the widespread acceptance of Bitcoin as a means of payment. In recent times, businesses have invested hundreds of billions of dollars in financial gain. MasterCard also plans to adopt certain cryptocurrencies as a means of payment. BlackRock, the world's largest asset manager, is also looking at ways to use digital currency. This information came up in a report of BBC online. The covid-19 epidemic has also contributed to the rise in bitcoin prices, as people are increasingly turning to online shopping and online payments.

Bitcoin started at $26,900 this year, according to cryptocurrency news site Coindesk. At the beginning of January, the price exceeded 40,000 dollars. Later it was reduced to 30 thousand. Later, after the investment of electric car maker Tesla, the price started rising again. Bitcoin touched the 50,000 milestone on February 18. Reaches $58,000 on 21 February. This time Bitcoin touched the milestone of 60,000. Bitcoin prices have risen more than 430 percent in the past year.

Tesla CEO Elon Musk is said to be one of the proponents of digital currency.

Critics, however, say that Bitcoin is less valuable and is a kind of speculative trading tool that makes it easier to manipulate the market.
In 2009, Satoshi Nakamoto, a pseudonym or a group of software developers, introduced a new type of virtual currency. This type of currency is known as cryptocurrency. The cryptocurrency invented by Nakamoto is called Bitcoin. There is no banking system in bitcoin transactions. There is a direct (peer-to-peer) exchange between two users online electronically. A method called cryptography is used to secure transactions.

Why Bitcoin is so valuable

It is possible to introduce 21 million bitcoins in the conventional way. That is, supply is limited. That is why Bitcoin is compared to gold. The supply of such gold will be depleted at one stage of extraction from the mine. Then there could be the lifted gold bikini. However, there will be no opportunity for new lifting. The idea of bitcoin is the same.

Bitcoin has to be ‘lifted’ through the solution of the algorithm, which is known as bitcoin mining. And if it continues at the current rate, it will take 2140 years to mine 21 million bitcoins.