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  • Friday, April, 2021| Today's Market | Current Time: 12:11:47
  • No one paid attention to Bitcoin when it was initially invented in 2009. But, we are looking at a completely different story in January 2021. The cryptocurrency skyrocketed and hit $40,000 on the 8th of January. This resulted in a renewed interest in cryptocurrencies, and of course, in Bitcoin. So, chances are you have probably heard the term ”cryptocurrency” on various media platforms. 

    But, still, Bitcoin is a highly volatile asset, and a lot of people and organizations aren’t sure if it’s a good idea to invest in BTC. That said, in this article, we cover important aspects of investing and Bitcoin that you should consider before you make your decision.

    What is Bitcoin

    Bitcoin is a digital cryptocurrency that relies on blockchain technology (peer-to-peer network) to operate. This is a fully decentralized system, which means no one specifically has control over the network. In fact, the recorded transactions are distributed across many different computer systems around the world. 

    And as everything is completely transparent, except the personal information about the users, no one can change the data in the network without the knowledge of the other users on the platform. Also, hacking the system is fairly impossible. Other benefits of investing in BTC are fast peer-to-peer transactions (on average cross-border transactions are processed within 10 minutes), low transaction fees, and complete anonymity. 

    Bitcoin Bull Cycle

    One of the reasons why most people in 2021 want to invest in BTC is that Bitcoin is still in a bull run since 2020. This is the first time the cryptocurrency has experienced a massive spike in the price, after a consistent and fairly steady rise in the price in the past months.  

    The first significant milestone was reached when it exceeded the price of 20,000 in December, and the next best scenario already happened in 2021, in January, when it reached $40,000. The optimistic future scenarios about the price include a massive increase in 2025 of $100,000. Other experts feel that if the patterns stay the same, we are looking at a price range between $100,000 and $288,000 in 2021. 

    Online Trading Platforms

    This leads us to online exchange platforms where you can actually get BTC. Bitcoin Code is a beginner-friendly site where you can earn up to £1,200. This is an exchange platform suitable for beginners because it uses advanced AI algorithms. 

    The auto-trading robot will complete the trading for you automatically. Actually, you don’t need to spend more than 20 minutes per day on the platform. Besides, there are plenty of materials to help you learn about Bitcoin and trading on the site. You can open an account by depositing $250 and get started here.

    How The Price of Bitcoin is Calculated

    Another difference between investing in cryptocurrencies and in investing in stocks is that you can make your decision based on the information you have about the company or read the balance sheets. Actually, because Bitcoin is based on a decentralized peer-to-peer system, its price is entirely based on the relationship between supply and demand. Of course, there are various events and factors that have an effect on the demand and the supply and, with that, on the price of Bitcoin. 

    First, the supply of Bitcoin is created at a fixed rate, according to the Bitcoin protocol. When new blocks of transactions are processed in the network by the miners, then new BTC are introduced in the network. This rate has slowed down over the last years due to Bitcoin halving and the strong competition in the network. This means that as the demand increases at a faster rate than the supply, the price of Bitcoin also rises. 

    It’s also worth noting that Satoshi Nakamoto put a limit on the total number of BTC to 21 million. When it comes to Bitcoin halving, it is an event that happens after 210,000 BTC are mined in the network. Then the block reward that miners get is split in half. Currently, the reward is 6.25 BTC. So, mining, as it’s quite competitive, is also unprofitable for many solo miners. 

    Final Thoughts

    The huge impact of the bullish cycle is felt on other cryptocurrencies that are also getting more popular. Actually, there was an increase in the prices of Litecoin, XRP, and Ether. But, it can be denied that when it comes to the global market, digital cryptocurrencies aren’t still widely accepted. Besides, investors always keep in mind that cryptocurrencies are considered volatile assets. That said, 2020 was obviously one of the best years for Bitcoin, and there are many experts that feel 2021 will be just as good for investors. In conclusion, if you’re looking to invest in BTC, keep up with the news on these topics,  and define achievable future financial goals