Bitcoin exchange value exceeds US$ 50,000

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During the European Tuesday evening of 5 October 2021 the virtual currency or cryptocurrency Bitcoin (BTC) exceeded the exchange rate of US$ 50,000 per BTC, when it traded at US$ 50,400 per BTC and has continued to strengthen since then. On 6 October at 5:53 am CET, this BTC/USD currency pair was trading on the Coinbase digital currency market at US$ 51,621.00 per BTC, with BTC daily growth of +0.82% against the USD.

The last time the Bitcoin virtual currency was traded at US$ 50,000 per BTC was at the end of the summer holidays and the beginning of September 2021, when BTC became legal tender in El Salvador. In general almost all cryptocurrencies have grown since last Friday, 1 October, and strengthened their exchange rates against traditional currencies and especially against the USD. However, BTC spent a relatively large part of the third quarter of 2021 in the low exchange rate range, roughly around a mutual exchange rate of US$ 30,000 per BTC, as investors feared regulatory policies in China and the United States. Teddy Vallee, Chief information officer at Pervalle Global Capital, said he expects the driving force to continue in the quarter unless a major equity correction is achieved. BTC’s return above the US$ 50,000 per BTC was supported by a comment from Wall Street, where even Bank of America called the digital asset sector “too big to be ignored.”

Bitcoin is an internet open-source P2P payment network and also the cryptocurrency used in this network. Bitcoin’s main uniqueness is its full decentralization; it is designed so that no one, including the author or other individuals, groups or governments, can influence the currency, falsify, confiscate accounts, control cash flows or cause inflation. There is no central point in the network, and no one can make decisions. The final amount of bitcoins is known in advance and the release of bitcoins into circulation is defined in the network source code. There are minimal or no cost payments. The network has been operating since 2009 and it was created by a group of people known as Satoshi Nakamoto. According to cryptocurrency analysts Bitcoin is the only medium of exchange that can offset central banks printing money.

A special database that stores an ever-increasing number of data – called a blockchain – serves as bitcoin’s ledger. The online database is protected both against unauthorized outside interference and from the users themselves. The final amount of bitcoins is known in advance and their release into circulation is defined in its source code. A unique feature of bitcoin is its complete decentralization. It is designed so that no one, not even its author or other individuals, groups or governments, can influence, counterfeit, confiscate accounts, control cash flows or cause inflation. Bitcoin is completely independent of traditional currencies, its value depends on the confidence that it will be possible to pay with it in the future as it does today. The value of bitcoin is based purely on supply and demand on the market, in short-term sections the exchange rate is characterized by sharp price fluctuations.

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