Bitcoin broke through $40,000 on Wednesday. With the withdrawal of short sellers and traders’ confidence in recent positive comments on cryptocurrencies by well-known investors, Bitcoin once again tried to break through its monthly range.
Bitcoin rose 1.7% to US$40,149, while competing cryptocurrency Ethereum rose 1% to US$2,328.
Bitcoin is one step above its 100-day moving average.
is a decentralized digital currency that has no central bank or sole administrator and can be sent from one user to another on a peer-to-peer bitcoin network without intermediaries.
nodes use cryptography to verify transactions and record them in a public distributed ledger called a blockchain.
Cryptocurrency was invented in 2008 by an unknown person or a group of people named Satoshi Nakamoto.
The token was put into use in 2009, when its implementation was released as open source software.
Bitcoins were created as a reward for a process called mining.
They can be exchanged for other currencies, goods and services, but the actual value of currencies fluctuates very easily.
A study by the University of Cambridge found that between 2.9 and 5.8 million unique users used cryptocurrency wallets in 2017, most of which used Bitcoin.
There are many reasons why users choose to use digital currency: adhere to ideologies such as anarchism, decentralization and liberalism, convenience, use of currency as investment, and anonymity of transactions.
The increase in use has led to government regulation of taxes, promotion of legal use in business, and demand for other reasons (such as money laundering and price manipulation investigations).
Bitcoin has been criticized for its use in illegal transactions, the large amount of electricity used in mining (and the resulting carbon footprint), price fluctuations, and exchange theft.
Several economists and commentators have repeatedly referred to it as a speculative bubble. Bitcoin is also used as an investment, although various regulators have issued warnings to investors about Bitcoin.
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