Bitcoin’s rise from a small-scale digital currency to a worldwide phenomenon has changed the way money is handled. It was released in 2009 and is known for being decentralized, which makes it different from traditional banking systems.
Bitcoin has a lot of interest from investors, businesses, and even governments because it can be used to buy things and store value. President-elect Donald Trump is even interested in Bitcoin.
Bitcoin’s value continues to achieve record heights
Right now, Bitcoin looks like it will have its best month since February. Its value has gone up by 45% since Trump was elected. The rise in value is due to Trump’s efforts to get crypto-friendly lawmakers elected to Congress, including Trump himself.
This change in the political landscape has made people more confident in cryptocurrency markets.
This is because more support for crypto-friendly policies could speed up the mainstream adoption of digital currencies, which would boost Bitcoin’s price and status as a leading asset even more.
Since the start of the year, Bitcoin’s value has grown by more than twice as much. In January of this year, the U.S. government approved bitcoin exchange-traded funds (ETFs). This also helped the market grow.
This year, Bitcoin has gone up by a huge 130%. Shane Oliver, chief economist and head of investment strategy at AMP Sydney, said, “The longer it lasts, the more seriously it is taken.
As an economist and investor, I find it very hard to value it—it is anyone’s guess.” It does, however, have momentum, and right now that momentum is going up.
Bitcoin nearly hits $100,000
While Trump was still in office in early November, Bitcoin broke through the $75,000 mark. It was almost able to break the $100,000 mark on the 21st.
Many people are still skeptical about cryptocurrencies, even though it is clear that they are becoming more popular. However, changes in Bitcoin policy, like the approval of U.S.-listed bitcoin ETFs in January, may help to boost public trust.
Ric Edelman, who started the Digital Assets Council of Financial Professionals, said, “There have not been any ETFs like this before.” “Until now, there have not been any ETFs that directly invest in and own bitcoin.
There are ETFs that trade futures in bitcoin, which is like buying stock options instead of stocks, and ETFs that invest in the stocks of companies that work in the crypto industry, like exchanges and miners.”
Tempted to buy into Bitcoin? Here is what you need to know
If you are starting to like the idea of investing in Bitcoin, there are a lot of things you should think about. People invest in Bitcoin and other cryptocurrencies with the hope that their value will go up quickly.
This is called a speculative investment. These assets’ prices change a lot, and investors hope to make money from them, but there is a lot of risk involved.
“Most of the time, you think of a financial asset as giving money to a business,” said Michael Finke, a wealth management professor at The American College of Financial Services.
“That money helps the business make something, and people buy it.” That makes money. The value of the business can be based on how much money you think it will make in the future. Bitcoin is not making anything, so its value is based on speculation alone.
Bitcoin is not like stocks or bonds, even though its price has gone up over 600% in the last five years. Bitcoin’s value is mostly based on speculation and has little use in the real world, unlike companies that make products and pay dividends.
A lot of the money made in the stock market also comes from reinvesting dividends, which make the money grow steadily over time. Bitcoin, on the other hand, does not give you the same chance to grow your money or reinvest it.
