How much was bitcoin when it appeared
Wed 16 Dec Show Bitcoin is the first, and the biggest, 'cryptocurrency' — a decentralised tradeable digital asset.
The lack of any central authority oversight is one of the attractions. Cryptocurrencies can be used to send transactions between two parties via the use of private and public keys. These transfers can be done with minimal processing cost, allowing users to avoid the fees charged by traditional financial institutions - as well as the oversight and regulation that entails.
This means it has attracted a range of backers, from libertarian monetarists who enjoy the idea of a currency with no inflation and no central bank, to drug dealers who like the fact that it is hard but not impossible to trace a bitcoin transaction back to a physical person. The Bank of England said earlier this year that it would join forces with other central banks to examine how Britain and other countries might use a central bank digital currency in the mould of bitcoin.
The move is partly a response to concern about oversight of private digital currencies, including Facebook's libra.
The exchange rate has been volatile, making it a risky investment. Was this helpful?
Thank you for your feedback. Analysts said that unlike in previous surges, a major price driver appeared to be more institutional investors buying into the cryptocurrency. Investor interest how much was bitcoin when it appeared been growing in bitcoin as a potential way to safeguard against rising inflation.
Expectations among City investors for higher rates of inflation have been growing in recent weeks, fuelled by the prospect of a stronger global economic recovery next year thanks to the Covid vaccine and stimulus measures from central banks and governments in advanced economies.