[CRYPTOMONNAIES] After going from 40,000 to 30,000 dollars in less than two days, the price of bitcoin has gradually risen. Its valuation stands at 650 billion dollars.
[Article mis à jour le 12 janvier 2021 à 18h52] It’s a roller coaster. After reaching the symbolic threshold of 40,000 dollars on January 07, 2021, the price of bitcoin fell to reach $ 30,000 on Monday January 11, 2021, a drop of 25%. At the time of this writing, the value of the cryptocurrency star hovers around $ 35,000 and his valuation stands at $ 650 billion. This correction is not entirely surprising as many investors have sought to recoup their profits. Note that since January 1, 2020, the value of bitcoin has increased by 21%. Ether, the second cryptocurrency in terms of valuation, has seen its price increase by 50% since the start of the year, despite the market correction. As always, it is difficult to predict if the cryptocurrency market will continue to rise in the months to come, but institutional investor interest in bitcoin & co may continue to move prices.
Bitcoin is a virtual currency created in 2009 by an unidentified person whose pseudonym is Satoshi Nakamoto. Unlike conventional currencies (also known as fiat currency), bitcoin is not issued and administered by a banking authority. It is issued on the blockchain protocol of the same name. This technology makes it possible to store and transmit information in a transparent, secure manner and without a central control body. Bitcoin, like many other cryptocurrencies, is put into circulation through mining. “Miners,” people around the world, perform mathematical calculations with their hardware for the bitcoin network to confirm transactions and increase their security. In exchange, they receive bitcoins. They can then be converted into fiat currency or exchanged for other cryptocurrencies on exchange platforms.
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Bitcoin issuance is limited to 21 million units, as provided for in the initial code. This amount should be reached in 2140. At the start of 2018, the number of bitcoin issued passed the 17 million mark, or 80% of the total. Due to the growing difficulty of calculations, bitcoin is being created at a decreasing rate: 12.5 bitcoins every ten minutes today (compared to 50 bitcoins in 2009). Note that the smallest division of bitcoin is satoshi. 1 satoshi = 0.00000001 bitcoin.
Bitcoin is used all over the world. Western countries concentrate a good part of the transactions, mainly in an investment logic. Countries with strong inflation are bitcoin users, like Argentina and Venezuela. In contrast, some countries have banned the buying and selling of bitcoin. This is particularly the case in Pakistan, Algeria, Bangladesh and Saudi Arabia. Since bitcoin cannot really be banned due to its decentralized nature, it is still possible to obtain it on peer-to-peer sites for example.
There is no official value for bitcoin. This indicator is only an average of bitcoin prices (usually in dollars) across all cryptocurrency exchange platforms around the world. There are several sites that use this method, the most famous of which is CoinmarketCap. How is the price of bitcoin determined? Quite simply by the law of supply and demand. On January 1, 2021, the price of bitcoin was 23,759 euros.
Since its creation, the price of bitcoin has experienced great variations. 2017 has been a particularly busy year for the cryptocurrency star. After passing the $ 1,000 mark in early 2017 and gradually increasing over several months, its price reached a historic level last December: $ 19,000 (16,000 euros). It then collapsed at the end of December 2017 and then continued to decline gradually in the first half of 2018 to reach around 6,500 dollars (5,500 euros).
The price of bitcoin began to be listed in early 2011, two years after its creation. It is most often expressed in dollars or euros but it can also be found in yen or yuan because Asians are very fond of crypto-currencies. Here is the history of the price of bitcoin in dollars.
Before buying bitcoin, it’s important to keep in mind that, as with any risky asset, you shouldn’t invest more than you can afford to lose. There is no such thing as a bitcoin account as there are bank accounts. To get bitcoins, you have to open an account on a crypto-currency exchange platform (there are around a hundred today in the world). In general, it is possible to buy them by card or by bank transfer. In France, there are a handful of players: the exchanges Paymium (bitcoin / euro exchange), Zebitex (multi-crypto / euros), Savitar and the brokers Coinhouse and ZeBitcoin. The latter also has a bureau de change in the 2th arrondissement of Paris called “Coinhouse Paris Store” (formerly La Maison du bitcoin). But French citizens can buy bitcoins on foreign platforms like the American Coinbase which is available in French language. Some are more ergonomic than others. Commissions also vary from platform to platform. The bitcoin.fr site regularly updates a ranking of platforms, including listing the number of positive and negative reviews.
Halving is an event during which the reward of miners who create bitcoin will be halved. This event takes place approximately every four years. The last halving, which dates from May 11, 2020, increased this reward from 12.5 to 6.25. This is the third halving since the creation of the cryptocurrency star in 2009, after those of November 2012 and July 2016. During the next halving, the mining premium will therefore increase to 3.125 bitcoins. And so on … This scheme will achieve by 2140 the maximum of 21 million bitcoins in circulation, as predicted by Satoshi Nakamoto, anonymous creator of Bitcoin. Today there are 18.3 million bitcoins in circulation. Halving is also synonymous with an increase in the price of bitcoin. In any case, this is what happened for the first two halvings. No wonder, since bitcoin, like many assets, is dependent on supply and demand. And with a falling supply, its price tends to increase. For the third, the pattern was not repeated as bitcoin lost 2% to settle at $ 8,560. It must be said that this halving takes place in a rather particular context linked to the coronavirus epidemic.
Once you have purchased bitcoins, it is possible to keep them in a wallet, physical or digital electronic wallet. It avoids the risks of hacking to which crypto-currency platforms may be victims. It includes two elements: a public key, known to all, which corresponds to a bitcoin address, and a private key, known only to the holder of the wallet. Physical wallets look like USB keys. Two big players are competing for the market, the French Ledger and the Czech Trezor. Digital wallets, software wallets, can be accessed on computer, mobile and desktop. Some examples of software wallets: ArcBit, BitGo, Electrum, Mycelium …
|19-Aug-08||Satoshi Nakamoto reserves the domain name bitcoin.org|
|03-Jan-09||Creation of the first transaction block of the bitcoin blockchain.|
|12-Jan-09||First bitcoin transaction between Satoshi Nakamoto and Hal Finney. Its amount is 10 BTC.|
|May 21-10||A programmer, Laszlo Hanyecz, buys two pizzas for 10,000 bitcoins.|
|17-Jul-10||Creation of a collectible card exchange platform, called MtGox, which will then become a bitcoin exchange.|
|15-June-11||To circumvent US sanctions, Wikileaks decides to accept donations in bitcoins.|
|June-11||The MtGox platform is hacked.|
|27-sept-12||The Bitcoin Foundation is created to standardize, protect and promote bitcoin.|
|10-Dec-13||Apple prohibits the use of bitcoins through its applications.|
|25-Feb-14||Closure of MtGox.|
|18-Jul-14||Dell becomes the world’s largest company to adopt bitcoin.|
|May 19-15||The New York Stock Exchange integrates the price of bitcoin under the NYXBT index.|
|1is august 2015||Arrest of Mark Karpeles, ex-CEO of MtGox.|
|22-oct-15||The Court of Justice of the European Union rules in favor of an exemption from VAT on euro / bitcoin exchanges.|
|1is january 2017||The price of bitcoin reaches 1000 dollars for the first time.|
|1is avril 2017||Japan recognizes bitcoin and virtual currencies as legal means of payment.|
|1is august 2017||A bitcoin fork gives birth to bitcoin cash.|
|31-oct-17||CME Group, a futures exchange, announces its intention to launch bitcoin futures contracts.|
|19-Apr-18||The European Parliament votes on a directive to more strictly regulate the activity of crypto-currency exchange platforms.|
|Aug 3, 2018||NYSE’s parent company Intercontinental Exchange announces creation of bitcoin exchange platform|
|23 sept 2019||Launch of Bakkt, the bitcoin futures platform (managed by the parent company of the NewYork Stock Exchange)|
Bitcoin cash (whose acronym is BCH) is a cryptocurrency born on 1is August 2017, following a bitcoin fork. A fork is a new branch created from the source code of existing software. For several years, the bitcoin community has been debating the evolution of bitcoin, which has several weaknesses, including the capacity of transactions per second. The size limit of a block of bitcoin is equivalent to one megabyte, which makes it possible to perform approximately 250,000 transactions per day. Bitcoin cash has a limit of 8 MB, which allows it to process around two million transactions per day. Increasing the size of a block allows for faster payments and lower transaction fees. Only downside, bitcoin cash mobilizes much more computing power than its cousin to validate transactions.
Bitcoin cash is the fourth most valued cryptocurrency, behind bitcoin, ether and ripple. At the beginning of June 2018, its capitalization reached 14 billion dollars, the equivalent of that of Crédit Agricole. Its price hovered around 850 dollars at the same time. It is possible to get it on major exchange platforms like Coinbase or Binance.
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