Jan 02, · The digital currency of the internet, how bitcoin and its BTC token are often called, had a phenomenal , unlike almost anything else. With the price of a single bitcoin coming close to 30, USD on the last day of the year and then hitting 33, in . Dec 31, · Bitcoin and other crypto-assets have taken a huge tumble in March For the first time, we saw a correlation between the stock market and crypto assets, dealing a blow to the narrative of crypto being an uncorrelated asset and its usefulness as a hedge against the stock market. Confidence soared and the price recovered from a previous tumble. And then came a twist. In the last 72 hours, Bitcoin increasingly looks as though it is heading for .
Bitcoin heading for a tumbleIs Bitcoin the new safe haven or heading for another crash? | This is Money
It is primed for the next downward move. A decade ago, you could buy it for 7p. Despite this meteoric rise, most investors have little idea what a Bitcoin is — and mystery surrounds what makes it valuable. In simple terms, Bitcoin is a computer file stored in a 'virtual wallet'.
It can either be saved or traded for goods and services from businesses that accept the technology. It is called a cryptocurrency because the computer programme used to make Bitcoin employs cryptography — or secret codes. This provides a layer of security to stop hackers stealing it.
A record of all Bitcoin is kept within a 'blockchain'. This is a database containing details of all transactions that have taken place and it provides a marketplace where buyers and sellers can trade their Bitcoin. Its origins are steeped in mystery — having been created in by an enigmatic Japanese computer coding expert calling himself Satoshi Nakamoto. The number of Bitcoins in circulation will never exceed 21million due to the way computer software used to create the currency has been engineered.
Have you made or lost money from Bitcoin? Email toby. Any new currency can initially only be found through an online exploration process known as 'mining'. So far 19million have been mined using super-powerful computers that go through reams of mathematical permutations to find the hidden codes. Financial consultants at deVere believe it is this finite limit that has been responsible for Bitcoin soaring in value. Nigel Green, chief executive of deVere, says: 'We believe this cryptocurrency is the future of money.
The staggering pace of the digitalisation of our lives, with increased use of computers and online trading, means digital money is here to stay. He adds: 'When facing times of trouble — such as those we are in right now — central banks are forced to print more money to support their economies.
This depresses the value of traditional currencies. But Bitcoin is a safe haven asset that is not devalued.
As a borderless currency it suits the modern world. This could happen, it said, as a result of rising debt caused by governments bailing out economies hit by Covid Duncan MacInnes, investment director at Ruffer, says: 'Our move is about spreading investment risk. We have invested 2. This caused Bitcoin to soar in value. This fall was partly due to a suspicion that the price rise had been manipulated by a single buyer. Sanlam UK's Ward is concerned that the recent surge in Bitcoin's value is not a good omen.
He says: 'Its current price represents danger for investors — just like it did three years ago before there was a spectacular crash. Bitcoin is primed for the next downward move. He adds: 'I fear a pattern is emerging that points to a fall. The value of Bitcoin rises, and then it gains mainstream attention with new investors drawn in by the fear of missing out. At this point larger players cash out and prices tumble. Others share his concerns. Ryan Hughes, of wealth manager AJ Bell, says: 'The old investment adage about never investing in something you do not fully understand has been thrown out of the window with this cryptocurrency.
People have simply not wanted to be left behind. But he warns: 'A major problem is that there is no way of giving Bitcoin an accurate valuation. This is a classic feature of an investment bubble. Some speculators have been attracted to Bitcoin because it has been described as 'digital gold' — a safe haven. But Ward believes such a term is misleading. He says: 'Just like gold, Bitcoin has a finite supply.
But gold is a rare precious metal with real-world benefits and strong desirability. It is hard to put a value on Bitcoin. Can you say that a piece of digital code is something that is desirable? The answer is probably not.
No one can. And the natural choice for where that wealth is ultimately transferred to is their progeny. For many of them, virtual currencies reflect the independence and the de-coupling from traditional hierarchies think the gig economy for which they are most known.
On the date of publication, Matthew McCall did not have either directly or indirectly any positions in the securities mentioned in this article. On the date of publication, the InvestorPlace Research Staff member primarily responsible for this article held a long position in bitcoin. Log in. Log out. About Us Our Analysts.
Source: Shutterstock. Sponsored Headlines. In the past 12 hours, the weekly moving average convergence divergence MACD of BTC a reverse trend is noted for the first time, in over two months. When bitcoin commences major upside movement, it is seen that tokens will eventually follow through. Sentiment with respect to bitcoin has seen short-term trend and significant changes in this phase.
The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available. Sign in. Log into your account.