What is Bitcoin currently backed up by

What is Bitcoin currently backed up by

November 2021 turned out to be hot for all crypto enthusiasts, because Bitcoin is back on the horse, even if it is already getting off it a little. Many users are interested in what the first cryptocurrency is supported by now.

Today we will consider all the nuances, the history of the creation of the first crypto project, and also talk about the probability of BTC depreciation in the future.

Sit back, it will be interesting.

How it all started

On October 31, 2008, someone under the pseudonym Satoshi Nakamoto published an article titled “Bitcoin: P2P Electronic Money”. In it, the author revealed the features of the first and so far the only cryptocurrency protocol on which the systеm will work. In fact, it was a set of rules, unchanged today.

In January 2009, Nakamoto himself generated the first block in the chain, at the same time another 50 BTC were mined. Initially, the life of the network is provided by Satoshi personally, using the computing power of his PC.

In the summer of 2009, the first exchange rate of BTC to the dollar appeared – it was 13 coins per 1 cent.

The first case of using cryptocurrency to pay for goods occurred in 2010. Laszlo Hanech paid for two pizzas with 10,000 BTC.

February 2011 was a turning point, because the Bitcoin exchange rate jumped 1,300 times! Since then, the coin has seen ups and downs, has gone through several course corrections, and has been backed up by investments. However, its capitalization gradually grew, as investors saw the prospect in the cryptocurrency.

Now Bitcoin is a real market leader and the most popular cryptocurrency in the world, which is used by millions of people.

What is happening with the BTC cryptocurrency now

Currently, $ 54,336.4 is being asked for 1 BTC on the exchange. If we take the statistics for three months, the quotes of the coin have increased by a little more than $ 7,000. However, the weekly interval shows a drop in the exchange rate at the level of $3381.

After a sharp return of Bitcoin to the “pre-crisis level”, a natural averaging of prices occurs. This is due to a gradual change in the ratio of supply and demand.

Investors are starting to believe in BTC again, so they return their capital from more conservative instruments, investing them in the cryptocurrency market.

Can Bitcoin become worthless?

Many believe that the dollar will depreciate sooner or later, since it is not backed by anything. Some experts predict the same soap bubble and the sad ending of Bitcoin.

Theoretically, it is possible. However, a limited emission dramatically reduces this probability. Calculations indicate that 20% of the total amount of coins provided by Nakamoto remains to be mined.

When the last coin is mined and acquires an owner, the value of the cryptocurrency will increase dramatically, as the source of replenishment will run out.

Over time, demand will exceed supply, and the value of the digital asset will go up.

This axiom is true, provided that BTC will become a global replacement for fiat currencies, and governments of states will not put sticks in the wheels.

How it affects the economy

The impact of Bitcoin on the cryptocurrency market is huge – its fall or growth affects altcoins. Many assets repeat the movements of the first cryptocurrency.

Back in 2015, BIS Bank noted that the emergence and development of Bitcoin could block the ability of central banks to fully control the growth and development of the economy, as well as effectively issue money to borrowers.

More and more large companies in the world recognize the value of BTC, and accept coins as a means of payment for goods and services.

For example, Steam, Tesla, Virgin Galactic, WordPress.

From a political point of view, Bitcoin hinders the governments of states, since they cannot control the payments of citizens. Technically, the authorities cannot withdraw coins or forge information previously recorded in the blockchain.

Conclusion

The impact of cryptocurrencies in general, and Bitcoin in particular, has not yet been fully disclosed, as many have not even heard of digital assets. Further popularization of digital assets will give everyone the choice of a service provider – the blockchain program code or traditional banks. And it is possible to exchange electronic money profitably in our cryptocurrency exchange office.

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