BTC/Bitcoin

Bitcoin is the first digital currency created by Satoshi Nakamoto in 2009. It serves as an alternative to traditional currencies (such as the U.S. dollar and the euro) and is particularly popular with investors as a means of storing value. 2024 saw the approval of a bitcoin ETF (exchange-traded fund). The approval of ETFs will help to increase bitcoin's credibility as a mainstream investment product and increase its safety and transparency.

BTC (Bitcoin) Market Data

BTC (Bitcoin) Market Data

What are the characteristics of Bitcoin?

Bitcoin has several characteristics compared to other cryptocurrencies. It is a decentralized system with no central authority; transactions are made through a peer-to-peer network. Cross-border payments are easier and cheaper, and transaction history is unchangeable and publicly available. The amount of bitcoins is limited to a maximum of 21 million and tends to increase in value as the amount of new bitcoins issued is reduced by half every four years.

Bitcoin (BTC) Introduction Video

proof of work

Proof of Work is part of the Bitcoin mining process. In this process, miners (miners) solve complex mathematical problems to approve bitcoin transactions and add new transactions to the blockchain (a public ledger that records transaction history). This keeps the network secure and prevents unauthorized transactions. Miners are rewarded with new bitcoins for successfully solving the problem. This reward is reduced by half every certain period of time, ensuring that the supply of bitcoins is limited.

How is this power measured?

The computer power used to mine bitcoins is called the "hash rate" and is critical to the security of the bitcoin network. The higher the hash rate, the more secure the network is, but it also consumes more power. This rate indicates how difficult it is to mine bitcoins and is adjusted to ensure that new bitcoins are generated at a constant rate. The difficulty of mining depends on the hash rate, which maintains the volume and value of bitcoins in circulation.

Bitcoin Mining Cost

The cost of bitcoin mining has changed as the technology has evolved: in 2010, miners used graphics processing units (GPUs) because they required more processing power than central processing units (CPUs). Over time, mining rigs using application-specific integrated circuits (ASICs) became the norm, and the cost of that equipment rose from thousands to hundreds of thousands of dollars.

Energy Costs of Bitcoin Mining

The Bitcoin mining process has been criticized by environmentalists for its high energy consumption. The amount of energy used in the process reportedly exceeds Argentina's annual consumption and has been positioned by some reports as "the next big environmental problem. The environmental impact of bitcoin will continue to be an important subject of debate.

Bitcoin Price

The price of bitcoin is very volatile, which is due to the immaturity and illiquidity of the bitcoin market, high leverage and emotional investors. As the price rises, the energy consumption required for mining increases, which can be difficult for smaller mining pools to maintain. To address this issue, new technologies are being developed to reduce energy use and improve scalability.

Bitcoin History

establishment: Bitcoin began in 2008, after Bitcoin.org was registered and a white paper by Satoshi Nakamoto was published. This white paper proposed a peer-to-peer cashless transaction system that would function without a central intermediary.
genesis block: On January 3, 2009, Nakamoto mined the first block (the Genesis block) and Bitcoin was born. This block contained a Times headline reflecting the financial crisis of 2009.

Bitcoin Usage

Buy Merchandise: Bitcoin can be used on travel sites and metal transactions to purchase goods and services.
real estate transaction: You can buy real estate with bitcoins through Bithome and other sources.
debit card: Bitcoin can be used online and offline using an encrypted debit card.

Bitcoin Transactions

derivative transaction: A transaction in which you do not directly own bitcoins, but have a contract for their future price.
spot transaction: Actually buy and sell bitcoins.
leveraged trading: Aiming for large profits using borrowed funds, but also with high risk.

Bitcoin Price Trends

It exceeded $20,000 in December 2020 and $40,000 in January 2021, reaching a peak of $50,000 in February 2021 and $69,000 in November. However, prices have since declined due to tightening monetary conditions.

social impact

Rise of Digital Currencies: The COVID-19 pandemic accelerated the spread of digital currencies, especially bitcoin.
Institutional interest: Institutional investment in bitcoin increased in 2020.
Decline in trust in financial institutions: The pandemic and financial crisis have increased the likelihood that bitcoin will serve as a safe haven.

Comprehensive Perspective

Bitcoin was born and grew during the financial crisis and the transition to digital currencies. Its uses are diverse and its trading market has matured. They are also sensitive to socioeconomic events and monetary policy, and their value and usage have fluctuated widely. The economic volatility caused by the pandemic was an important turning point for bitcoin, thereby reinforcing its status as an investment vehicle.

MicroStrategy's Bitcoin Strategy

Investing in Bitcoin: MicroStrategy invested heavily in bitcoin as a countermeasure to the weak US dollar and as a result became one of the largest holders of bitcoin.
Leverage and Risk: Michael Saylor issued bonds and invested in bitcoin, which resulted in margin calls and liquidation risk. The company reports that the remaining 90,000 bitcoins are at risk of liquidation at around $21,000, with an actual liquidation price of $3,562.

Bitcoin's Current Status and Future Prospects

Daily Use: Currently bitcoin is not suitable for daily spending money.
Future Possibilities: The Deutsche Bank report "Imagine 2030" points to the need for price stabilization, regulatory acceptance, and global reach in the payments market as barriers to Bitcoin becoming mainstream.
development: Access to bitcoin is expanding as PayPal, Mastercard, and others move to accept the cryptocurrency.

Factors Affecting Bitcoin Price

supply and demand: Large purchases of bitcoin by institutional investors have had a bullish impact on prices.
Limits of Distribution: Demand may exceed supply, as the maximum supply of bitcoin is 21 million, with approximately 20 million expected to be available by 2025.

investment strategy

Importance of Self-Survey: Adequate research should be conducted before investing, and portfolio diversification is recommended to minimize risk.

Consideration of time of purchase

There are no specific suggestions as to when investors should purchase bitcoin, but market trends and risks should be considered.

What is the "Rainbow Chart" that illuminates the future of Bitcoin?

Chart of the hottest topics among bitcoin investors

It is difficult to predict the future price of bitcoin. However, a helpful way to examine bitcoin price trends from a long-term perspective is called a "rainbow chart. This colorful chart shows bitcoin price projections over a long-term timeframe.

Market Behavior in the "Blue Zone"

Of particular note is the "blue zone" on the chart. When the price of bitcoin approaches this zone, many investors consider this a time to buy or a "fire sale". However, during this period, there is often a collective panic in the market. This shows an interesting relationship between investor psychology and market trends.

Risks Involved in Chart Prediction

But the important point is this one:Past performance is not indicative of future results. It is important to keep in mind that while rainbow charts are helpful, they are not absolute in predicting future prices. Markets are full of uncertainty and forecasts are only guesses.

Safety of Bitcoin Investments: the Risks You Need to Know and How Safe They Are

New Frontiers in the Investment World

Bitcoin investment is gaining attention as a new age investment technique, but this comes with risks. The more experienced the investor, the more important it is to have a solid understanding of the risks and disadvantages associated with bitcoin investing. Let's take a look at the risks and potential drawbacks of bitcoin investing.

Regulatory Uncertainty

Bitcoin is a relatively new asset class and the associated regulations are uncertain and variable. For example, different regions in the United States treat bitcoin differently. Mining is banned in New York while it is approved in Texas. Also, in China, strict regulations on bitcoin mining and trading were enacted in 2021, which had a significant impact on the price of bitcoin.

Safety Concerns

There is a saying, "not your keys, not your coins." This means that if you store your bitcoins in the marketplace, you risk losing your assets due to hacking or shutting down operations. Security is always a factor to consider when owning bitcoins.

Market Instability

The value of bitcoin is unpredictable and volatile and has a speculative element. In the past, there have been days when the value has dropped 61% in a single day or up to 80%. Mental preparation and a long-term perspective are needed to deal with such violent fluctuations.

Bitcoin Safety

Those just beginning to invest in Bitcoin often wonder about its security. In fact, bitcoin is a very secure asset because it is authenticated by an individual private key. The private key is a string or 24-word seed phrase, the protection of which is paramount. In addition, the Bitcoin blockchain network is designed to be decentralized and highly resistant to hacking, including 51% attacks. Understanding these characteristics will give you an idea of where bitcoin stands in comparison to other digital currencies.

Bitcoin and Ethereum: A Comparison of Two Major Digital Currencies

Two major digital currencies

Bitcoin and Ethereum (technically Ether) are the two largest digital currencies in the world based on current market capitalization. However, these two currencies are very different in their purpose.

Bitcoin: Role as a medium of exchange

Bitcoin is designed as an alternative medium of exchange to replace paper money and is primarily used as a means of value storage and a transaction tool. Until now, Bitcoin has relied on the Proof of Work (PoW) agreement algorithm.

Ethereum: A Decentralized Platform

Ethereum, on the other hand, was created as a system for developers to build decentralized applications (DApps) using smart contracts. Ether is the currency used within this blockchain, and with the advent of Ethereum 2.0, Ethereum is moving to a Proof of Stake (PoS) agreement algorithm.

Speed and Scalability Differences

Ethereum's block generation time is about 15 seconds, much shorter than Bitcoin's 10-minute intervals. This was intentionally set by Vitalik Buterin, the designer of Ethereum. This short generation time is one of the reasons why Ethereum is well suited for building decentralized applications.

Bitcoin and Ethereum are two major digital currencies with different purposes and characteristics. Bitcoin serves as a medium of exchange, while Ethereum serves as a development platform for decentralized applications. Understanding these differences will help you better understand the diversity of the digital currency world.

2020: A Historic Year for Bitcoin

Last year was a record year for Bitcoin. Not only did its value increase significantly, but so did its popularity, and the digital currency trend is expected to continue: amid the global turbulence caused by the COVID-19 pandemic, bitcoin made a solid recovery, eventually reaching an all-time high of over $40,000.

2024: ETF Approval: New Developments in the Bitcoin Market

In addition, there was great news for the bitcoin market. An exchange-traded fund (ETF) for bitcoin was approved. The approval of ETFs will help to increase bitcoin's credibility as a mainstream investment product and increase its safety and transparency.

Bitcoin's New Status and Future Prospects

This paradigm shift has further established bitcoin's acceptance in the mainstream financial markets and its status as a safe investment; the approval of the ETF has further positive implications for bitcoin's prospects, and the "party" in the digital currency market is not over yet.

Conclusion.

Bitcoin's value is on the rise, and with a major breakthrough in 2020 and ETF approval in 2024, its future looks even brighter. It is important for investors to continue to follow developments in this evolving digital currency market.

Virtual Currency Information Bureau