About Bitcoin (BTC)
Bitcoin (BTC) is the world’s first and largest cryptocurrency. Launched in 2009, Bitcoins are a direct, peer-to-peer digital currency. It is created solely by code, with no banks or governments involved in issuing or trading the coins. BTC is used for payments and as a store of value. Part of its value is derived from the fact that only 21 million coins will ever be created.
Using Bitcoin (BTC) price information
Bitcoin price information helps investors assess the value of Bitcoin, identify trading opportunities, manage portfolios, mitigate risks and track market trends and sentiment.
Frequently asked questions
How is the price of Bitcoin determined?
The price of Bitcoin is highly volatile and influenced by various factors:
- Because there are only 21 million Bitcoins in circulation, the scarcity can drive up the price as demand increases.
- Production costs also affect the price, including expenses associated with mining and the difficulty level of the algorithm.
- Competition from other cryptocurrencies, such as Ethereum, can directly impact Bitcoin’s price.
- Market regulations surrounding Bitcoin sales can also influence investor sentiment and market dynamics.
- Media coverage and news concerning Bitcoin can shape investor sentiment and lead to price fluctuations.
What is Bitcoin mining?
Bitcoin mining verifies transactions on the blockchain and introduces new Bitcoins into circulation. Miners use hardware and software to solve cryptographic puzzles, earning rewards for finding solutions. The incentive supports the primary goal of mining, which is to confirm the legitimacy of Bitcoin transactions.
How does the Bitcoin ETF work?
A Bitcoin ETF is a fund whose value mirrors that of Bitcoin and can be traded on traditional exchanges. Bitcoin ETFs operate similarly to conventional exchange-traded funds.
The value of one share of the ETF corresponds to the price of Bitcoin, meaning it fluctuates accordingly. When Bitcoin’s value rises.
The ETF value follows, and the reverse is true. However, unlike cryptocurrency exchanges, the ETF is traded on established market exchanges such as NYSE or TSX.
What is the market cap of Bitcoin (BTC)?
The current Bitcoin market cap is 736.52B, slightly lower than yesterday’s 739.18B but significantly higher than 318.56B from a year ago.
This represents a decrease of 0.36% compared to yesterday and a substantial increase of 131.2% compared to a year ago.
What makes Bitcoin valuable?
Bitcoin is valuable because:
- It derives its value from trust. The modern financial system is built on trust, and Bitcoin offers an alternative financial system that relies on its underlying technology, which has proven to be secure and resilient.
- It is scarce. Only 21 million Bitcoins will ever exist, and its fixed supply cannot be altered or expanded. This scarcity is in contrast to fiat currencies, which can be subject to changes in their total supply, leading to potential dilution in purchasing power.
- It is easy to transfer and resists confiscation. It allows for relatively low-cost transfers of many values compared to traditional alternatives, making it a borderless digital currency. It is challenging to confiscate as long as users store their BTC in traditional non-custodial wallets and protect private keys.
- It is decentralised. Being powered by a distributed network of users, it does not rely on centralised intermediaries and is less susceptible to human-decision making and potential abuse. This decentralisation enhances security and makes it resistant to financial censorship.
Find out the latest Bitcoin news
Weekly Crypto Wrap: 15th February 2024
CEOs Corner: Navigating the post-spot Bitcoin ETF landscape