What is Bitcoin?
Bitcoin is the first cryptocurrency ever created. It is not controlled by any government or institution. And that’s the point. Introduced in 2009 – and the standard for cryptocurrencies – it is a decentralized digital currency that operates on a peer-to-peer network. This type of network allows users to make transactions without the need for intermediaries such as banks or governments. Decentralization is one of the key features of bitcoin. This gives users the ability to make transactions directly with other users. It also provides for anonymity.
Bitcoin is groundbreaking and innovative. Transactions performed on bitcoin are recorded on a public ledger. The public ledger is called the blockchain. This type of “public ledger system” is highly transparent and secure. Also, it is immutable and hacker-proof. This innovation is groundbreaking. Indeed, this technology allows for removal of third parties for all consumer-to-consumer transactions. No need for banks, no need for governments, or any other entity to confirm the transactions.
Further, bitcoin is highly portable. This makes it easy for users to carry around and use wherever they are in the world. Indeed, this is especially useful for people who travel frequently. It is also useful for those who live in countries where traditional banking systems are not reliable.
Also, the cryptocurrency markets remain highly liquid. A holder of bitcoin can go and sell his bitcoin for another cryptocurrency or for a fiat currency, such as the U.S. dollar.
Moreover, bitcoin has the potential to revolutionize the way we think about money and commerce. For example, it could enable the creation of new types of financial products and services, such as micropayments or decentralized exchanges. Additionally, it could also enable the development of new types of businesses and organizations, such as decentralized autonomous organizations (DAOs).
Bitcoin’s decentralization, portability, and transparency make it a powerful tool for making transactions and storing value.
Bitcoin: Back to the Bulls
The recent rise of the price of bitcoin back above $20,000 is significant for a number of reasons.
First, it highlights the growing mainstream acceptance of bitcoin as a legitimate form of investment. During the last bull cycle of 2018, bitcoin never went back above $15K. Now, as we pullback the charts, we see a price action that is consistent with higher lows. As the macroeconomic conditions improve, this price action could continue.
Second, the overall investment in the cryptocurrency space remains significant. VC investment was at $30 billion in 2022. Each major bank has a cryptocurrency department. Indeed, there are indications that this bear market is easily distinguishable from the 2018 bear market.
Bitcoin: The Spring of 2023
The recent rise of bitcoin going back over $20,000 has important implications for the cryptocurrency market. First, it shows that the market is maturing and becoming more stable. The recent price action will likely encourage more retail investors to enter the market. This increased investment interest could lead to more capital, innovation and development in the space.
As the price of bitcoin continues to rise, more people will become interested in it, which will lead to more adoption, and greater awareness. This can ultimately benefit the whole ecosystem of cryptocurrency and pave the way for more innovation and development in the space.
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