Bitcoin Crosses $20,000 in Value: What It Means For Cryptocurrenc

Marietta GA

28 January, 2021

10:33 PM

Description

Back in March, Bitcoin started a huge climb, all thanks to online payment platforms like Paypal announcing that it will allow its account holders for using the cryptocurrency option. The cryptocurrency giant Bitcoin back in December 2020 broke through a mark of $20,000 for the first time since it started off trading over the last few weeks. This leading virtual currency made its first appearance back in 2009. Bitcoin reached an all-time high of close to $20,398.50 on Wednesday and later on fell back to $20,145. This was recognised as an inter-day gain close to 4%. By March, Bitcoin had a meteoric climb because of the online payments, PayPal announcing it account holders for using the cryptocurrency. The value of Bitcoin got stuck to around $5000 in March and it got an increase of 400% in the last eight months. The US Federal Reserve along with several other banks-those of China and Sweden are listing the digital applications as a reaction to Facebook's move of producing its own digital currency called Libra. Also, there are several cryptocurrency exchanges in Indiadealing with Bitcoin trading. Regulation of Bitcoin Bitcoin is not regulated by any of the central banks and therefore it emerged as a tempting option for the investors who have profitable interests. However, because of its volatility and unpredictability, it has also attracted criminals to its domain. Debate on whether Bitcoin can be a future currency or a form of the asset has been doing rounds since 2009. However, the virtual currency became popular in 2013 when it crossed the benchmark of $1000 for the first time. Since then it has garnered the attention of financial institutions and has experienced some massive price slumps and jumps. Should One Invest In Bitcoin? Recently the cryptocurrency crossed $20,000 benchmark value. So, the question remains is it viable to invest in Bitcoin? There are several factors to consider before investing in Bitcoin. The price of Bitcoin has always been volatile and there seem to have no clear explanation about the same. How Does A Bitcoin Work? The origin of Bitcoin is still not clear. It was only after the 2008 financial crisis when a person named Satoshi Nakamoto conceptualised something called a peer-to-peer accounting system. Satoshi Nakamoto published a white paper explaining peer-to-peer electronic cash systems. This was believed to be the initial starting of Bitcoin into the scene. Bitcoins are identified with an address comprising 26-35 alphanumeric characters starting with 1 or 3. The address remains anonymous representing the destination of a Bitcoin or a fraction. Bitcoin was used as an alternative for fiat money and then became a universally accepted medium of exchange. Bitcoin transactions are mostly recorded in a ledger called the blockchain. What Investment Opportunity Does Bitcoin Present? The first proponents of Bitcoin did not intend it to be used as an asset but nurtured the exchanges to turn it into an asset profitability regime. However, traditional investment experts are a bit sceptical for Bitcoin as an investment. As it is an alternative currency which is fundamentally in digital form and one has to be a little cautious while investing in it. It is crucial to know that the price of Bitcoin shrunk sharply over $18,000 in December 2017 to around $3200 in December 2018. It then again went up to over $10,000 in July 2019, and again made a dip of $5500 in March 2020. This shows how volatile Bitcoin can be. So, this can be a little dicey to invest in Bitcoin in the first instance. Proper research and market analysis are important as far as cryptocurrency investment is concerned. For Indians you canbuy cryptocurrency in India in any of the designated bitcoin exchange platforms.