In 2008, the Bitcoin concept was invented in 2008 by “Satoshi Nakamoto,” Bitcoin is a currency similar to money, but entirely virtual. Physical bitcoins have no worth in the absence of the secret codes that are printed inside them.
When it first began in 2009, bitcoin was virtually worthless. Today one bitcoin can be in the thousands. Even though its value is constantly fluctuating throughout time, the fact remains that it is able to be disregarded that it’s a form of investment that’s worth a look.
In the recent Bitcoin stories Many were confused as to why the price of bitcoins have skyrocketed regardless of the coronavirus epidemic. As more countries began to enforce locks in response to the Coronavirus outbreak price plummeted. the economy was predicted to slow. However investors, worried about the global economic crisis were looking for alternative opportunities. The result was that Bitcoin prices rising this 2020.
Reasons for Bitcoin Prices Going Up
- Uncertainties in the economy
There are many factors that contributed to the rise in bitcoin prices. These include Brexit issues, tensions between the governments among South Korea and Japan as in addition to the ongoing China-US trade conflict.
The main cause is thought to be COVID-19. The continuing global pandemic that was first discovered in China is affecting millions of people across 188 countries and territories.
It’s the same about gold. The last time we checked The Federal Reserve along with numerous central banks from around the world reduced interest rates. This was done to show solidarity to the economies struggling due to the pandemic that is sweeping across the globe. This led to the weakening in the US dollar in comparison to other currencies, however, it also benefited Bitcoin as well as gold.
- An excellent option to protect wealth
The fall in the value of the value of the US dollar against currencies has led many to seek out other forms of investments that are safer and more safe. With the idea it is likely that the worth of currency that is backed by government are likely to fall investors are choosing to investing their hard-earned dollars into Bitcoin instead of investing in stocks.
- The idea of investing in bitcoin is now a common practice
Blockchain-based cryptocurrency initiatives led by major tech companies have enabled Bitcoin investing becoming more popular. Since cryptocurrencies were backed by these companies, it has acted as a validator of digital assets and distributed technologies and enabled users to take pleasure in the versatility and flexibility that this technology offers.
There are a myriad of other causes and theories that could be considered to explain the increase of Bitcoin prices. But the fact is that Bitcoin is a good investment worth considering particularly during this time of epidemic.