[BITCOIN] In parallel with this mega investment, the automaker announces that it accepts payments in Bitcoin. Since his statements, the price of cryptocurrency has increased.
[Article updated February 8, 2021 at 3:30 pm] Elon Musk loves Bitcoin. A few days after adding the hashtag Bitcoin to his Twitter biography, the head of Tesla announces that his company has invested the equivalent of 1.5 billion US dollars in Bitcoin to « diversify and maximize the return on investment, » d ‘after an official document. The American leader also stated that the cryptocurrency star will soon be accepted at Tesla. A few seconds after these announcements, the price of Bitcoin rose 14%, surpassing its all-time high of January 10, 2021 ($ 41,850). As of this writing, one bitcoin is worth more than $ 43,800. Since the beginning of the year, « digital gold » is up more than 51% and its valuation is now more than $ 811 billion. Tesla isn’t the first large company to acquire Bitcoin. The software manufacturer MicroStrategy has bought 70,784 bitcoins, which is currently more than $ 3 billion. Jack Dorsey-owned payment company Square also invested the equivalent of $ 50 million in Bitcoin in October 2020.
Bitcoin is a virtual currency created in 2009 by an unknown person using the pseudonym Satoshi Nakamoto. Unlike traditional currencies (also known as fiat currency), Bitcoin is not issued and administered by a banking authority. It is issued in the blockchain protocol of the same name. This technology enables information to be stored and transmitted transparently, securely and without a central control point. Bitcoin, like many other cryptocurrencies, is brought into circulation through mining. “Miners”, people all over the world, use their hardware to perform mathematical calculations for the Bitcoin network to confirm transactions and increase their security. In return, they receive bitcoins. They can then be converted into fiat currencies or exchanged for other cryptocurrencies on exchange platforms.
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Bitcoin’s output is limited to 21 million units, as foreseen in the original code. This amount should be reached in 2140. In early 2018, the number of Bitcoin issued exceeded the 17 million mark, or 80% of the total. Due to the increasing difficulty of the calculations, Bitcoin is created at a decreasing rate: 12.5 bitcoins every ten minutes today (compared to 50 bitcoins in 2009). Note that the smallest division of Bitcoin is Satoshi. 1 satoshi = 0.00000001 bitcoin.
Who Uses Bitcoin?
Bitcoin is used all over the world. Western countries focus a large part of the transactions mainly on one investment logic. Countries with high inflation are Bitcoin users like Argentina and Venezuela. In contrast, some countries have banned the buying and selling of Bitcoin. This is particularly the case in Pakistan, Algeria, Bangladesh and Saudi Arabia. Since Bitcoin cannot really be banned due to its decentralization, it is still possible to refer it to, for example, peer-to-peer websites.
Bitcoin price in euros
There is no official value for Bitcoin. This indicator is just an average of Bitcoin prices (usually in US dollars) on all cryptocurrency exchange platforms worldwide. There are several websites that use this method, the most famous of which is CoinmarketCap. How is the price of Bitcoin determined? Quite simply according to the law of supply and demand. On February 1, 2021, the price of Bitcoin was 27,271 euros.
Since its inception, the price of Bitcoin has seen huge fluctuations. 2017 was a particularly busy year for the cryptocurrency star. After surpassing the $ 1,000 mark in early 2017 and gradually rising over several months, its price hit a historic level last December: $ 19,000. It then collapsed in late December 2017 and gradually continued to decline in the first half of 2018, reaching around $ 6,500.
Bitcoin price history
The price of Bitcoin was quoted in early 2011, two years after its introduction. It is mostly expressed in dollars or euros, but it can also be found in yen or yuan, as Asians are very fond of cryptocurrencies. Here is the history of bitcoin price in dollars.
How do I buy bitcoins?
Before buying bitcoin, keep in mind that, as with any risky asset, you shouldn’t invest more than you can afford to lose. There is no Bitcoin account as there are bank accounts. To get bitcoins, you need to open an account on a platform for exchanging cryptocurrencies (today there are around a hundred in the world). In general, it is possible to buy them by card or by bank transfer. There are a handful of players in France: the exchanges Paymium (Bitcoin / Euro), Zebitex (Multi-Crypto / Euro), Savitar and the brokers Coinhouse and ZeBitcoin. The latter also has an exchange office in the 2nd arrondissement of Paris called « Coinhouse Paris Store » (formerly La Maison du Bitcoin). However, French citizens can buy bitcoins on foreign platforms such as American Coinbase, which is available in French. Some are more ergonomic than others. The commissions also vary from platform to platform. The bitcoin.fr website regularly updates a ranking of the platforms, including the number of positive and negative reviews.
The halving is an event where the reward of miners who make bitcoin is cut in half. This event takes place roughly every four years. The last halving on May 11, 2020 increased that reward from 12.5 to 6.25. This is the third halving since the creation of the cryptocurrency star in 2009, after those of November 2012 and July 2016. During the next halving, the mining premium will therefore be increased to 3.125 bitcoins. And so on … This program will reach the maximum of 21 million bitcoins in circulation by 2140, as predicted by Satoshi Nakamoto, the anonymous creator of bitcoin. Today there are 18.3 million bitcoins in circulation. Halving is also synonymous with an increase in the price of Bitcoin. In any case, this happened on the first two halves. No wonder, because Bitcoin, like many other assets, is dependent on supply and demand. And when the supply falls, the price tends to rise. The third time, the pattern was not repeated as Bitcoin lost 2% and settled at $ 8,560. It must be said that this halving takes place in a very specific context related to the coronavirus epidemic.
Once you’ve bought bitcoins, you can keep them in a wallet, physical or digital electronic wallet. It avoids the risk of hacking that cryptocurrency platforms could fall victim to. It contains two elements: a public key that is known to everyone and corresponds to a Bitcoin address and a private key that is known only to the holder of the wallet. Physical purses look like USB sticks. Two large companies compete for the market, the French ledger and the Czech Trezor. Digital wallets, software wallets, can be accessed on computers, cell phones and desktops. Some examples of software wallets: ArcBit, BitGo, Electrum, Mycelium …
Dates that marked the history of Bitcoin
Bitcoin cash (whose acronym is BCH) is a cryptocurrency that was born on August 1, 2017 after a Bitcoin fork. A fork is a new branch that is created from the source code of existing software. For several years, the Bitcoin community has debated the evolution of Bitcoin, which has several weaknesses, including the capacity of transactions per second. The size limit of a Bitcoin block is equal to one megabyte, which allows approximately 250,000 transactions to be carried out per day. Bitcoin cash has a limit of 8MB, which allows around two million transactions to be processed per day. Increasing the size of a block allows for faster payments and lower transaction fees. The only downside is that bitcoin cash mobilizes a lot more processing power than its cousin for validating transactions.
Bitcoin cash is the fourth most popular cryptocurrency after Bitcoin, Ether and Ripple. In early June 2018, the capitalization reached $ 14 billion, which is the same as that of Crédit Agricole. At the same time, its price was around $ 850. It is possible to get it on major exchange platforms like Coinbase or Binance.
Bitcoin in France
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