Bitcoin Latest News Today
What is Bitcoin, and how does it work?
Bitcoin is a new form of digital currency that can be stored, exchanged, and used to make payments, just like any other currency. However, the decentralized structure and opt-in approach of Bitcoin distinguish it from national currencies such as the US Dollar, Euro, and British Pound.
Bitcoin is a digital currency also referred to as cryptocurrency. It uses blockchain technology through which are the transactions are entirely encrypted. Therefore, it is one of the secure means of storing and using money.
On the other hand, Bitcoin is opt-in money governed by user consensus or will. It comprises a growing community of people who have voluntarily agreed to follow the Bitcoin protocol’s regulations. As a result, they make peer-to-peer payments and hold value independently of any government entity or financial institution using the decentralized infrastructure.
In 2008, an unknown individual using Satoshi Nakamoto’s nickname published a white paper describing the Bitcoin concept. Of course, nobody knows the author’s real identity, or even a single individual or a group of people. Nevertheless, the paper laid out how Bitcoin would function, and the currency became live in 2009.
As long as interest in Bitcoin continues to rise, the artificial scarcity of Bitcoin is a benefit for Bitcoin investors. A higher price is the result of increasing demand and inelastic supply. Bitcoin is similar to gold in this regard. However, from a monetary standpoint, it significantly limits Bitcoin’s ability to become a real currency. Price stability necessitates a degree of elasticity in the quantity of money. In that way only, a coin can grow in line with the economy of the country.
Mike McGlone’s predictions regarding Bitcoin
Aside from China, governments throughout the world have started cracking down on cryptocurrency businesses. For example, European officials want to prohibit anonymous transactions, and the European Commission has suggested laws to ensure complete traceability of crypto-asset transfers. That is why it is becoming increasingly challenging to handle crypto in different countries since different regulations apply.
Aside from the regulatory environment, the narrative around the Covid Delta version has rocked global markets in general. Many individuals commenting on Balchunas’ Twitter thread agreed with McGlone’s prediction that bitcoin would exceed $60K rather than $20K.
According to crypto expert Mike McGlone, based on past pricing patterns, bitcoin is more likely to exceed $60k than $20k, as Balchunas tweeted. Thus, according to McGlone, China’s rejection of open-source software crypto assets might signal a halt in the country’s economic growth. But, on the other hand, it could be the driving force of Bitcoin going exceedingly high than expected.
It isn’t the first time McGlone has predicted the price of bitcoin in the future. Last month, a top commodity analyst said that $40,000 would be more plausible than $20,000, and the new $60K forecast is far more positive. So even though it appears to be a bit unrealistic at this point, a far-fetched prediction from this expert might be correct. Whether Bitcoin achieves $20,000 or goes to its high of $60,000 remains to be seen. Probably, only time will tell!