Bitcoin has had a tremendous beginning of 2021, topping $40,000 per Bitcoin for the 1st time.
The second half of 2020 was noteworthy for the flood of institutional money flooding into the cryptocurrency market.
Bitcoin is on a tear.
Meanwhile, bitcoin’s fame as “digital gold” has risen in recent weeks as governments around the world flood markets with unprecedented levels of freshly printed cash – resulting in a surge of big name investors naming bitcoin as a possible hedge against inflation.
Now, as Bitcoin and cryptocurrency investors try to call exactly how far this already-huge rally will run, Ethereum cofounder Vitalik Buterin has discovered what he thinks is actually an “underrated” bull case for crypto. “One of the more underrated bull cases for cryptocurrency I’ve always believed is just the fact that gold is actually lame, the younger generations understand that it is lame, and that $9 trillion has to go somewhere,” Buterin wrote in a recent 2020 summary blog post.
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 impacts the future of each particular currency pair. Naturally, investors are actually centered on the impact that the loss of the U.S. dollar will have on Bitcoin.
What Is Bitcoin?
Let’s review the basics:
The very first mention of a product called bitcoin was in August 2008 when two programmers with the help of the names Satoshi Nakamoto and Martti Malmi registered a new url, bitcoin.org. In October of the very same year, Nakamoto released a document, called a white paper, entitled “Bitcoin: A Peer-to-Peer Electronic Cash System.”
Most men and women are actually aware that the name’ bitcoin’ is actually derived from the’Bitcoins of the virtual currency industry. While there are lots of people which know about the bitcoins, very few people have heard about the satoshi, which is the nickname for probably the smallest division of Bitcoin. 100 million Satoshis added together equals one Bitcoin.
Indeed, Bitcoin was created in 2008 and launched in 2009, just as world governments happened to be printing money to respond to the global economic crisis. A slew of other digital assets followed.
Bitcoin Rages Higher In 2020
Bitcoin values fell steadily after sharp rallies in 2013 and 2017, but these declines were not precipitated by any serious event spanning multiple asset classes. While it is possible for the prices to fall back down again, you could find yourself being extremely wealthy from this investment in case you wait it out long enough.
Cryptocurrencies were hardly immune from the bear turn. Investors first began selling off equities in February as they moved to cash, and also safety plays like gold eventually took a dip in March. But Bitcoin eventually fell, too, crashing hard in mid-March.
Those lows were short lived, however. Digital currencies bounced hardest off the bottom, and Bitcoin turned positive by April.