Unlike the way the common currency is printed by a country’s government, Bitcoin can only be extracted using a computer with powerful computing resources in a process called “mining”.
As this process is complicated and consumes a lot of energy, and Bitcoin has a maximum limit (21 million), so it is scarce by nature.
Because of this scarcity, coupled with the growing demand from institutional and retail investors, Bitcoin has become the focus of discussion in the investment market and its value has grown from less than a dollar in 2009 to more than $ 50,000 today.
Unlike traditional currencies that can be backed by gold and silver, Bitcoin’s value comes from investor confidence in the blockchain network he established. One reason to increase the legitimacy of your transactions may come from companies like PayPal and The recognition of platforms like Square is related to the fact that more than 350 million users currently buy and sell Bitcoin on such platforms.
The main difference between now and three years ago is that there are more institutional investors investing in Bitcoin. In addition to the support of companies like PayPal, Tesla declared in the SEC files last week that it will buy $ 1.5 billion in bitcoin and will start accepting bitcoin as a payment method. Bitcoin has once again gained outside attention.
Therefore, as governments around the world continue to adopt different regulatory methods, the value of Bitcoin will depend on how people use it.
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We recommend reading our other posts so as not to be fooled when buying your precious Bitcoins.
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