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Tesla Elon Musk blew up the week, who announced that he had spent $ 1.5 billion to buy the highest-cap crypto device.
What is Bitcoin?
Bitcoin is an open source digital currency from which a strictly defined amount can be mined. Its maximum inventory is 21 million, and when our article is published, there are just over 2.37 million removable bitcoins. Bitcoin is not under the control of any central bank, the decentralized software system cannot be manipulated, it guarantees immediate and practically free cash flow between users. On average, miners find one bitcoin every 10 minutes, according to which the last pieces of the 21 million bitcoins that represent the ceiling would be found in 2140. But based on the current upward trend in mining capacity, analysts set a date between 2040 and 2050 in which 99.9 percent of all bitcoins will be mined.
On the news, bitcoin’s exchange rate against the dollar hit a new record high yesterday – it rose above $ 44,000 with a gain of more than 13 percent. But this is not the end of the story, as it strengthened further until 8 a.m. Central European Time, reaching a new peak in the exchange rate on Tuesday morning:
the price of bitcoin also surpassed $ 48,000 on Tuesday morning.
Just 14 hours earlier, bitcoin was trading around $ 45,300, which is
- almost 30 percent in a week,
- 13 percent in a month,
- 200 percent in three months, while
- 350 percent annually
means an increase. Not to mention, it has been strengthened by more than 12,000 percent (!) In five years, which means its value has multiplied by more than a hundred.
But why?
The immediate root cause is clearly Tesla’s announcement: in addition to buying in bitcoin, the California company has made another major announcement that it will now be possible to pay in Tesla with bitcoin. The portfolio has also compiled what else may be behind the sharp increase.
The list will start in May bitcoin halved, which means that mining production has been cut in half; This has already significantly increased the value of existing assets. Many kritpodeviza background started and the institutional investors Bitcoin has also started trading, including the world’s largest fund manager BlackRock, which has allowed its funds to take on bitcoin futures positions, Square, Jack Dorsey’s payments company, was the first company to go public. in announcing that they bought bitcoins, followed by PayPal. shortly after, he also decided to launch a cryptocurrency service, which has greatly increased the legitimacy of bitcoin, the latter also being bolstered by the fact that digital currencies (stablecoinok) they are also becoming more popular. A good example of this is that not only has the price of bitcoin skyrocketed in the recent period: the price of ethereum, the second-largest with market cap, has also risen nearly 300 percent in the last three months.
The acceptance of virtual currencies is also increasing at the regulatory level
– writes the portal, adding that in various economies (including the EU and the US) regulation it could come and be restricted to legal use. There are also countries that are experimenting with their own virtual currency (see China or Sweden).
Finally, the JPMorgant The economic portal also mentions among the reasons: JPM has launched an interbank payment system with its own blockchain-based technology to create a digital device called “JPM currency” linked to the dollar.
Where can it end?
In our previous article, which we wrote in December because the exchange rate surpassed 20,000, we also asked the experts where Bitcoin could stop skyrocketing.
The maximum value this year is expected to be between $ 50,000 and $ 100,000. This is a conservative estimate, institutional investor analysts are forecasting a peak of $ 300-400 thousand, which I think is exaggerated. A stable exchange rate of $ 500,000 would be needed to reach the market capitalization of gold.
Barnabas Debreczeni, a board member of the Hungarian Bitcoin Association, told Index. Well, if the rumor around bitcoin continues, it seems that the price of bitcoin will reach the band expected by the expert very soon.
(Cover photo: Elon Musk, Tesla CEO, January 7, 2019. Photo: Qilai Shen / Bloomberg / Getty Images)
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