Wait, what is Bitcoin again?
Bitcoin is the first cryptocurrency — this is, essentially, money that allows people to send and receive payments directly to each other without relying on banks or governments.
Created in 2009 by an unknown person or group using the name Satoshi Nakamoto, Bitcoin introduced a new way to handle transactions online. It operates on a technology called blockchain, which is a public ledger that records all transactions across a network of computers. This system ensures that transactions are secure and transparent.
Initially, Bitcoin (BTC) had no market value, and its first notable transaction occurred in 2010 when 10,000 BTC was exchanged for two pizzas, valuing each Bitcoin at a fraction of a cent.
However, as of February 2025, a single Bitcoin would set you back a number just shy of $100,000 dollars.
This represents the astronomical increase of almost 190,000,000% since 2009.
Several factors have contributed to this dramatic rise:
Increased adoption: Over the years, Bitcoin has gained acceptance from both individuals and institutions as a legitimate form of digital currency and investment.Scarcity: Bitcoin’s supply is capped at 21 million coins, with the number of new coins released into the system halving every four years, creating a sense of digital scarcity that has driven demand.Regulatory developments: Favorable regulatory changes, such as the approval of Bitcoin exchange-traded funds (ETFs) in the United States, have enhanced accessibility and legitimacy, attracting more investors.Macroeconomic factors: Economic uncertainties and inflation concerns have led investors to view Bitcoin as a hedge, further boosting its appeal.
However, Bitcoin isn’t a safe bet, according to some critics. For instance, in the words of Warren Buffett: “Unlike buying stocks, bonds or real estate, buying Bitcoin is not an investment. That’s because it lacks intrinsic value.”
Indeed, Bitcoin doesn’t really have a competitive use case for transactions anymore. Transactions can take around an hour to process with exorbitant fees, while newer,…
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