Bitcoin has been soaring to new record highs reaching as far as $63,000 this time around. Due to its surging value, it is perhaps the most sought-after cryptocurrency today. It has become the new hot topic for discussion and rarely does a news cycle go by without its mention.
The asset’s growing popularity and high return potential have many potential investors as well as curious spectators interested, wanting to try out their luck at being knee-deep in riches. And for those watching its developments from afar, the Bitcoin Bull Run is like watching a high-speed motorcycle race: thrilling and daunting while they have their motorcycle helmets on them.
But Bitcoin continues to be a nebulous concept. And if you’re out of the loop, chances are you’re feeling left out. Hence, here is all you need to know to partake in the Bitcoin discussion.
The First Cryptocurrency
The idea for Bitcoin was first presented by “Satoshi Nakamoto“, the alias used by the programmer or group of programmers that drew motivation for its development from the 2008 economic crisis.
Working with a crypto mailing list, Nakamoto launched the digital currency of Bitcoin, which was essentially electronic money that verified its transactions through cryptography in early 2009. What made this development unique was its peer-to-peer system that could not be controlled by any third party such as governments or banks.
However, this wasn’t the first attempt by someone to develop some sort of electronic money. Hashcash and Digicash were two of the major projects that preceded Bitcoin but were unsuccessful as they were unable to solve the “double-spend” problem. This means that people could spend the same money or coin twice.
Bitcoin presented a solution to the double-spend problem by introducing a permanent time-stamped ledger, the Blockchain. Having such a system in place makes every coin unique and traceable since the transaction history of each individual Bitcoin can be publicly viewed on the Bitcoin blockchain network.
Hence, Bitcoin successfully became the first digital asset to beget an entire ecosystem of more than 4,000 cryptocurrencies. The design code of Bitcoin entails a limitation to its issuance, capped at 21 million Bitcoins.
How To Buy Bitcoin?
The easiest way to acquire Bitcoin is perhaps through big brokerages like Gemini or Coinbase. In fact, Coinbase just got listed on the NASDAQ and went public. This will make it much easier to buy and trade it and will also expand exposure to crypto.
Apart from that, if you’re planning to get your hands on Bitcoin solely for the purpose of trading it, trading platforms are the way to go. Trading platforms and tools, such as the Bitcoin Prime app that allow you to directly get started with trading and reaping its benefits by only depositing USD250 through the assigned robot broker.
These platforms make use of advanced technologies such as Artificial Intelligence (AI), and Machine Learning (ML), along with powerful trading algorithms to allow their users to make profits from short-term booms that occur as a result of the highly volatile nature of the market.
Performance In 2021 So Far
Since the beginning of this year, Bitcoin has been on a rollercoaster run, registering dizzying gyrations. It started off the year with a bang soaring to new record highs of $40,000. However, the value plunged soon after losing almost 20% of its value proving how volatile this cryptocurrency actually is.
The value set off on its road to recovery and continued to rise and surpass the $50,000 mark this time. From then on, the value continued to fall and pick up again. During the month of February, a number of major institutions came forward, declaring their allegiance to the market, announcing plans of investment in Bitcoin or the plans to embrace the cryptocurrency in the future.
Among the front runners was Elon Musk, the chief executive of the electric automaker Tesla. He first made an announcement that the company had invested $1.5 billion in Bitcoin. This announcement along with his tweets in support of this digital currency drove Bitcoin’s value to new horizons.
Many financial institutions such as PayPal, Mastercard, Square, and Visa also joined in this crypto frenzy which helped Bitcoin receive some much-needed validation. As a result of increased institutional interest, the value of Bitcoin recently surpassed the $63,000 mark, shocking its doubters and skeptics. Bitcoin has soared in value by almost 450% in the preceding six months and analysts predict that the price will continue to surge for the rest of the year apart from the occasional dips.