A year ago, on January 10, 2020, Bitcoin was valued at $7,808. And it was just this past October that it was hovering in price around $11,000. But to the surprise of observers and almost out of nowhere, the value of Bitcoin took off above the $41,000 mark to attain a new all-time high of $41,660 in the last 24 hours.
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.
With a bit of help from the media, the general population has become curious about the fascination girls have for the new venture known as bitcoins. As a currency, it stands out among all others. The trouble is that many folks still do not understand exactly how it works or even how to use it.
This particular collaboration of increased investment interest in Bitcoin as an investment, as well as increased adaptation of Bitcoin, cryptocurrency and blockchain technologies by businesses, points to a perfect storm for prices.
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.
With any significant change to the economy, there is going to be questions as to how this affects the future of each particular currency pair. Naturally, investors are actually focused on the impact that the loss of the U.S. dollar will have on Bitcoin.
What Exactly Is Bitcoin?
Let’s review the basics:
Bitcoin is a digital currency created in January 2009 following the housing market crash. It follows the ideas set out in a whitepaper by the mysterious and pseudonymous Satoshi Nakamoto.? The identity of the person or folks that created the concept is still a mystery. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and is actually operated by a decentralized authority, unlike government-issued currencies.
And in contrast to fiat currencies, which may be printed on demand, Bitcoin is actually restricted to a total of 21 million possible coins once it’s fully mined. (Fortunately, it may be split fractionally down to 1/100,000,000th of a Bitcoin, known as a “Satoshi.”) It was designed to be a true store of value that could not be manipulated.
Bitcoin has had some basic periods after its creation in 2009, but analysts are no longer claiming the “death of Bitcoin.”
Bitcoin Rages Higher In 2020
Bitcoin prices crashed after sharp rallies in 2013 and 2017, but these declines were not precipitated by any serious event spanning multiple asset classes. While it is feasible for the charges to fall back down once again, you could find yourself being extremely wealthy from this particular investment in case you wait it out long enough.
So the bear market of 2020, short as it was, marked the first time Bitcoin as well as other digital currencies faced a truly global crisis which threatened many types of investments.
Bitcoin bounced quickly, as most of the huge institutional funds moved in once they saw how the bitcoin price continued to move higher.