At the end of 2020, Bitcoin, the most famous crypto asset, beats its record from December 2017! This spectacular surge shouldn’t obscure the risks of these unregulated digital currencies, which are subject to high volatility and frequent scams.
Bitcoin price: highs … and lows!
With an increase of almost 200% over 2020, Bitcoin is undoubtedly the capital that has grown the most during this period marked by an economic crisis of historic proportions. Its price topped $ 22,000 on December 17, largely erasing its previous December 2017 record. Its value was « only » $ 12,823 at the end of October, an increase of more than 70% less than two months!
In comparison, the 2020 rise in the price of gold, despite being considered a safe haven, appears modest overall.
Bitcoin prices, which have been developing worldwide since the beginning of 2020, have risen since October 21, and the online payment service PayPal has announced the introduction of a buy and sell service. and payment by cryptocurrency (Bitcoin, Ethereum, Bitcoin Cash and Litecoin) from 2021. In general, the increase in Bitcoin prices seems to be favored by the fact that more and more institutional investors are integrating these crypto assets into their portfolios, against the background of particularly low levels Interest rates and the fact that the limit set at 21 million units fuels relative scarcity. For some who fear the return of inflation, investing in crypto assets would be a way to maintain purchasing power, which supports demand for those assets.
However, financial authorities like the Banque de France and the Autorité des Marchés Financiers (AMF) continue to warn of the volatility of crypto assets. 2017 was a shining example: Bitcoin started the year at $ 998 and hit $ 19,114 on December 18, an increase of over 1,800%! However, in mid-January 2018, the price of Bitcoin was only $ 11,490. The value then gradually fell, reaching less than $ 4,000 in late 2018. The more volatile an asset, the riskier it is. The volatility is even a measure of the risk. Indeed, an asset whose prices are volatile has a high probability that its value will decline sharply in a short period of time.
Bitcoin: Beware of Fraud
In addition to the « simple » risk of high volatility, the AMF warns investors of the risks of fraud and fraud. These are particularly important for investors and in growing numbers. Indeed, with crypto assets escaping regulation and thus the guarantees of the traditional banking sector, it is very difficult, if not impossible, to obtain compensation in the event of fraud or fraud. Therefore, the AMF regularly publishes warnings about these scams. These relate, for example, to unauthorized companies that, as we recently recalled, frequently operate abroad, to all categories of investment proposals (diamonds, forex, cryptocurrencies, etc.). In order to better protect itself from questionable commercial techniques, the regulatory authority has also developed numerous teaching materials.
When to buy bitcoin
According to crypto specialists, investments in Bitcoin are likely to remain strong in 2021 as Bitcoin recently set a new record of over $ 35,000.
Is It Too Late To Invest In Bitcoin?
With each new BTC high, many people thought it was too late to invest. This happened when prices hit € 10, € 50, € 200, € 1,000, etc. … And although the prospects for Bitcoin are not the most exciting, it is still possible to invest in Altcoins.
Is It Time To Invest In Bitcoin?
Bitcoin, a Risky Investment Note that Bitcoin is based on an unregulated market and this virtual currency has no official price. It is an IT environment with its own rules that may prove unsuitable for people who do not have sufficient technical knowledge and skills.
Who Owns Most of the Bitcoin?
Satoshi Nakamoto The creator of Bitcoin, who hides behind the nickname Satoshi Nakamoto, remains the primary holder of Bitcoins. The number of bitcoins Nakamoto owns today is estimated at around 1.1 million.
When did the first cryptocurrency appear?
On January 3rd, 2009 the first block or Genesis block will be created. In February 2009, he published the first version of the Bitcoin software on the P2P Foundation website. To operate the network, he used his computer and thus generated the first bitcoins.
Why is Bitcoin rising and falling?
So, when a cryptocurrency is introduced on a new public exchange, new buyers can acquire that cryptocurrency and therefore its price increases. Conversely, the price drops if a hack takes place on a cryptocurrency.
What are the risks of Bitcoin?
The Banque de France also points out the various dangers associated with the use of Bitcoin: a virtual asset, as it is not backed by real activity, high volatility, long transaction times and the legal risk associated with its currency status. unregulated, which in particular leads to …
What was the highest bitcoin price ever?
March 10: Bitcoin hit its highest level since its inception, peaking at $ 1227/1340. The total value of the money supply then approaches 20 billion euros and exceeds 20 billion dollars.
What is the worth of bitcoin now?
(€ 27,110.93) Bitcoin price – BTC value Euro | BTC Direct.
What is the price of Bitcoin in January 2020?
|Bitcoin price in US dollars|
Who Has the Most Bitcoin?
1 – Chris Larsen ($ 7.5 billion to $ 8 billion)
Who is the Creator of Bitcoin?
It’s one of the secrets that shake the web … Nobody knows the father of virtual currency or whether it really exists. Today, almost ten years after the first Bitcoin transaction in January 2009, Satoshi Nakamoto is believed to be at the top of an immense fortune.
How was Bitcoin born?
Bitcoins are created through the process of « mining ». Miners who manage to create bitcoins are rewarded with fractions of bitcoin by the network. The miners’ work makes it possible to secure the network and conduct transactions.
Which country uses bitcoin currency?
|Number of Bitcoin ATMs|