In 2009, a new cryptocurrency appeared in the system of electronic financial payments, that is Bitcoin, which has truly revolutionized. The development of the Internet protocol and the definition of the principle of operation of the client program was carried out by Craig Stephen Wright, an Australian cryptographer, under the pseudonym Satoshi Nakamoto.
The end-to-end payment system allows you to transact in end-to-end networks without the involvement of intermediaries (banks) and therefore you do not pay commissions.
As used in a traditional payment system, it is like a ledger in common language. The seller and the buyer agree on the transaction, the payment is made in Bitcoin, and the ownership passes from the seller to the buyer. All registered users are available in this system, both buyers and sellers from different parts of the world.
The important features of this electronic payment system are the 100% security and reliability guarantee when transferring digital property rights from one owner to another, as well as anonymous Bitcoin transactions.
Currently, Bitcoin is considered one of these digital currencies that is predictable, simple and transparent. Due to its programmed limited supply, there is no inflation for Bitcoin.
Current situation in the cryptocurrency market – Bitcoin
After the cryptocurrency appeared in circulation, its value relative to the dollar appeared.
For example, in 2010 the American Laszlo Hanech bought 10 pizzas for 2 thousand Bitcoins, and in 2014 the rate was 1 Bitcoin (BTC) = 1200 US Dollars. In such calculations xrp to btc converter can also be used. In 2016, the exchange rate situation was unstable and fluctuated between $1-$420 per 650 Bitcoin in the first quarter.
According to financial experts, Bitcoin will not disappear from the market in the next 10 to 20 years and the programmed emission limit system will be enough for 125 years.
Given the following facts, we can safely assume that there is only a rapid increase in the value of Bitcoin:
1. Acceptance of world-renowned companies (Microsoft, Overstock, Dell, DISH Network, eBay Internet auction) crypto money as a means of payment;
2. Increased interest and investment in a distributed blockchain cryptocurrency database;
3. Increasing demand from the Chinese market.
Daniel Masters, one of the founders of Bitcoin hedge fund “GlobalAdvisors”, predicts an increase in Bitcoin's value.
In such a situation, you should always remember the diversity of risks and not rush to invest in digital currency.
Many investors expect an increase in the use of cryptocurrencies in the traditional financial system, which in turn pushes the price up.
Square and PayPal, which are payment services used by approximately 300 million people, have added the ability to purchase cryptocurrencies to their applications. These are the companies that have bought all available Bitcoins in recent weeks.
Bitcoin's value could rise to $22.000 and then the decline could begin, but it is unlikely to be as strong as it was in 2018.
The current value increases are different from the previous situation. At that time, cryptocurrencies were mainly bought by small Asian investors. In 2020, institutional investors and large companies, especially the USA and Europe, started to buy Bitcoin. Significant amounts of transactions are recorded on cryptocurrency exchanges, which encourages large investors to participate in transactions.