Bitcoin traded above $20,000 for the first time on December 16, 2020. It jumped 4.5% to move as high as $20,440. Bitcoin has gained more than 170% this year.
Bitcoin is a cryptocurrency launched in 2009. It was created by an unknown person or group using the alias Satoshi Nakamoto. Nakamoto wanted to create a currency that could “resist unpredictable monetary policies and banking regulations”.
Also read: Digital currencies need to be regulated, G7 finance officials say
Bitcoin transactions are made with no middle men. Marketplaces here are called ‘cryptocurrency exchanges’. It allows people to buy or sell bitcoins using different currencies. It can be used to buy merchandise anonymously.
Bitcoin has seen many peaks and troughs since it was created. It was worth less than $1 back in 2010. In 2017 it came close to breaking through the $20,000 level. It has also fallen below $3,300 previously. It stood at $5,000 in March and has seen a rise since.
But the future of bitcoins is still in question. It has not yet proved its fundamental value as a currency. Governments are still hesitant to deal with it. It poses risks because of the anonymity and lack of regulation.
This article is auto-generated by Algorithm Source: www.thehindu.com