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Case Study on Bitcoin’s Surge

First released in 2009 under the alias “Satoshi Nakamoto,” Bitcoin is the original cryptocurrency. It is a digital money that runs in a decentralised, peer-to-peer system and is based on the fundamental technology known as blockchain. This network is unique in that it maintains total transparency in all of its transactions and functions without interference from a financial institution or central authority. Because there is a limit of 21 million Bitcoin in circulation, it is extremely rare. The practice of mining,’ which entails employing computer power to verify transactions on the Bitcoin network, is how new bitcoins are created. As an alternative, Bitcoin can be obtained through cryptocurrency exchanges.

Everyone who possessed Bitcoin had profited from it for a short while. The cryptocurrency token reached an all-time high of slightly over $69,000 on March 5th, which will no doubt excite the meme-obsessed crypto community, before slightly declining. The record completed an incredible recovery from the dire circumstances of November 2022, when interest rate increases were stifling risk appetite and the cryptocurrency exchange FTX had recently collapsed. Purchasing Bitcoin on these exchanges sounded like a fun and interesting way to get conned.(FILES) On October 20, 2021, physical replicas of bitcoins are seen at a branch of a cryptocurrency exchange close to the Grand Bazaar in Istanbul.

Because of the present surge in Bitcoin’s value, there is a great deal of conjecture and expectation over future changes to its pricing trajectory. The market value of Bitcoin is on the rise, which has several unanswered concerns and repercussions. As the price rises, new investors may rush in to take advantage of the possible gains, and current stakeholders may see this as a great time to make profits. Increased trade volumes may result from this dynamic, which may raise market volatility.

Furthermore, increased media coverage of Bitcoin’s price increases frequently serves to pique public interest and may even attract new players to the market. This greater exposure may influence Bitcoin’s integration into established financial systems by encouraging a wider recognition of the cryptocurrency as a respectable investment or even a mode of payment. Because cryptocurrencies are speculative, there is uncertainty about the future. Depending on a number of factors, such as changes in investor attitude, governmental changes, and technological breakthroughs, the market may see severe declines or continue its upward trend. As a result, everyone involved in the Bitcoin story, from watchers to stakeholders, is closely monitoring the market for any clues as to what could happen next.

Monika Shanmugam