Since 2023, Bitcoin's price has been rebuilding and it's cracked through $100,000 Australian dollars.
👉 Background: Bitcoin is the decentralised cryptocurrency that launched in 2009 by the mysterious Satoshi Nakamoto. After peaking during the pandemic, Bitcoin's price fell hard in 2022. It was a time when inflation was rising, FTX was revealed as a big scam, and investors were losing.
👉 What happened: Since 2023, Bitcoin's price has been rebuilding and it's cracked through $100,000 Australian dollars (although now it is back below). In fact, this year, bitcoin is up more than 50% already.
👉 What else: Since bitcoin doesn't have any underlying asset, its price fluctuations are purely based on consumer sentiment. And this time, it looks like the price rise is in anticipation of Bitcoin's next halving.
💡The rarer the gem, the longer the line. One of the major appeals of bitcoin is that there will only be 21 million bitcoins in circulation... ever.
💡A programmer can't just print more money like the central banks did during COVID. Right now, there is around 19.6 million bitcoins in circulation. And, the halving, which happens roughly every four years, means that the reward for mining a bitcoin block is halved.
💡The halving slows down the supply of Bitcoin from growing too quickly so that it remains finite and prevent inflation from eating into the value of it. And all of this makes Bitcoin even more valuable, and increases its demand.
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