The cryptocurrency roller coaster: how cryptocurrencies are trading on April 3, 2022
El bitcoin, una de las principales criptomonedas, presentó un cambio de 0,54% en las últimas 24 horas
Bitcoin, one of the main cryptocurrencies, presented a change of 0.54% in the last 24 hours
April 3, 2022
Cryptocurrencies have boomed in recent months, motivated, in addition to the SARS-CoV-2 pandemic, by certain billionaires -such as Elon Musk- and governments that have opted to give them a chance as legal tender.
Against this backdrop, more and more people have decided to acquire cryptocurrencies in the hope of having a medium and long-term investment, despite the volatility that characterizes them.
Here we bring you the price of the main cryptocurrencies for April 3, 2022:
Bitcoin
Price: 46,530.477 USD
Exchange rate: 0.54%.
Ethereum
Price: 3,504.301 USD
Exchange rate: 1.59%.
Tether US
Price: 1 USD
Exchange rate: 0%.
BNB
Price: 447.757 USD
Exchange rate: 0.26% BNB
Litecoin
Price: 126.686 USD
Exchange rate: 1.44%.
Dogecoin
Price: 0.146 USD
Exchange rate: 3.24%.
What is a cryptocurrency?
A cryptocurrency is a digital medium of exchange that does not physically exist and is based on cryptography to ensure integrity in transactions and maintains control over the creation of new units.
Bitcoin was born in 2009 and since then many cryptocurrencies have been created. Litecoin, Ethereum, Bitcoin Cash, Ripple, Dogecoin are some of the most popular.
Cryptocurrencies have several characteristics that make them unique, such as not being regulated or controlled by any institution, they do not require intermediaries in transactions and accounting blocks are used to prevent new cryptocurrencies from being created illegally.
However, since they do not have regulators such as a central bank or similar entities, they are accused of not being reliable, of being volatile, of encouraging fraud, of not having a legal framework to support their users, of allowing the operation of illegal activities, among others.
To acquire them, the purchase or exchange of the currency itself can be made in specialized portals. Its value varies according to supply, demand and the commitment of users, so it can change faster than traditional money, but the more people are interested and want to buy a particular currency, the higher its price will be.
However, whoever invests in this type of digital assets must be very clear that this form brings with it a high risk to the capital, because, just as there can be an increase, it can also have an unexpected crash and wipe out the savings of its users.
Cryptocurrencies".
FILE PHOTO: A graphic illuminates representations of the virtual currency bitcoin in this illustration taken March 13, 2020. (Photo: REUTERS/Dado Ruvic)
The bitcoin boom
Born in the aftermath of the 2008 financial crisis, bitcoin promoted a libertarian ideal and ambitioned to put traditional monetary and financial institutions in check. It was launched by someone named Satoshi Nakamoto, but today his identity remains hidden.
According to a book published by Satoshi Nakamoto, the aim of the cryptocurrency was "to make online payments directly from one third party to another without going through a financial institution".
Thus, on January 3, 2009, he created the first block of 50 bitcoins. Currently, there are 21 million bitcoins in circulation and the monetary mass continues to increase with the continuous issuance of new units.
In 2013, bitcoin, which was worth almost nothing in its early days, surpassed $1,000 and began to attract the attention of financial institutions. Months later, it faced its biggest crisis with the hacking of the MtGox platform run by Mark Karpelès, where up to 80% of the units in circulation were exchanged.
Prices fell and it took three years for the cryptocurrency to recover. At the end of 2017, a new rally put its value at $19,511. Today its price has surpassed up to 62 thousand or fallen to 35 thousand, also influenced by comments from investors such as Elon Musk.
Despite the progress and reach that Bitcoin and other digital assets have had, organizations such as the World Bank, the International Monetary Fund (IMF) and the Inter-American Development Bank (IDB) are still skeptical about the possible benefits of this type of cryptocurrency.
Others, such as the government of El Salvador, have given it their vote of confidence and on June 9, 2021 became the first country to legalize bitcoin as a legal currency. In addition, President Nayib Bukele announced his intention to create the first Bitcoin City in Conchagua and it would be financed through tokenized bonds backed by bitcoin.
Cryptocurrencies in Mexico: the Bank of Mexico (Banxico) has determined that none of the institutions participating in the national financial system will be able to use or must allow transactions of any kind through this means of payment. However, the country is ranked 14th out of 27 nations that have digital currencies.
Translated with www.DeepL.com/Translator (free version)