Buy Bitcoin (btc)

The most important information about Bitcoin:

• Bitcoin (BTC) is the oldest and currently most traded cryptocurrency
• Developed in 2008 by Satoshi Nakamoto, Bitcoin is the world's first cryptocurrency
• The maximum number of bitcoins is limited to 21 million units
• In November 2021, the BTC price reached its current all-time high (ATH) at 69,045 US dollars per coin

About Bitcoin

In 2007, Satoshi Nakamoto developed the cryptocurrency Bitcoin (BTC). As the real identity of Satoshi Nakamoto remains unknown to this day, the name could refer to an individual or a group of developers. As a decentralised currency, the Bitcoin price is not determined by governments or financial institutions. Furthermore, Bitcoin transactions provide a high level of anonymity, as the data of a Bitcoin address is not associated with any specific person. Individual bitcoins are traded privately or on exchanges and stored in wallets, which function like digital purses.

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Blockchain technology is the foundation of Bitcoin

Bitcoin is based on a technology called the blockchain. The blockchain is a kind of database that is stored and updated on countless computers worldwide at any time of day. Individuals who participate in this process with their computer receive a reward in the form of new bitcoins. This process is called Bitcoin mining. The reward for newly mined bitcoins is halved every four years through halving events. This ensures that the number of existing BTC coins remains limited and the price is not subject to strong inflation.

A fixed number of bitcoins counteracts inflation

While banks and governments contribute to inflation by printing more fiat currencies, Bitcoin is limited to a total supply of 21 million coins. This makes Bitcoin particularly suitable as a means of payment in countries where the currency loses significant value due to high inflation. In addition, investments in Bitcoin can hedge one's assets against inflation. However, it should be noted that the Bitcoin price is also subject to a certain degree of volatility or value fluctuations.

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Bitcoin as a payment method

The use of Bitcoin as a payment method has been possible since 2009. However, compared to traditional fiat currencies, bitcoins are not legal tender in most countries. Some online shops and some businesses offer payment with cryptocurrency. With crypto credit cards like the WealthBizzTradeFX Card, investors can pay with Bitcoin and other cryptocurrencies anywhere credit cards are accepted. Payment is made by transferring the deposited bitcoins at the current exchange rate into the corresponding fiat currencies.

Combat Bitcoin price fluctuations with regular investments

The prices of cryptocurrencies, including the Bitcoin price, are subject to a certain degree of volatility, i.e. price fluctuations. As a result, the price per BTC varies depending on the current exchange rate. With regular investments, you can reduce the effect of price fluctuations. This is also known as the cost-average effect, which is the process of regularly purchasing bitcoins to reduce the impact of price fluctuations on your entire portfolio. With our overview of cryptocurrency prices, you can easily keep an eye on all important developments.

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Important facts about Bitcoin

What you should know about Bitcoin:

• Satoshi Nakamoto developed Bitcoin in 2007; the whitepaper was published in 2008
• Since 2009, bitcoins can be used as a means of payment or investment
• Major investors include Tesla, Microstrategy, and Block.One
• A maximum of 21,000,000 BTC can be mined
• Currently, approximately 19,250,000 BTC are in circulation
• The last Bitcoin is expected to be mined in 2140
• A halving event occurs every four years (the next expected in March 2024)
• Bitcoins are a secure, anonymous, and relatively inflation-resistant currency
• The encryption of the blockchain makes hacking the currency practically impossible
• To ensure the security of the blockchain, mining consumes a lot of computing power and energy
• Bitcoins can be stored digitally in software wallets, web wallets, cold wallets, and hardware wallets

Bitcoin price information

The Bitcoin price is determined by supply and demand. As a decentralised currency, neither banks nor governments have an influence on the Bitcoin price. If there is a higher demand for Bitcoin, the price also increases. Fluctuations in the Bitcoin price can occur due to political and economic developments.

Bitcoin price: Milestones and important events

The first known Bitcoin price was 0.0008 US dollars per coin. In the following years, the price per Bitcoin increased slowly. A frequently mentioned story is about an investor who paid 10,000 bitcoins for two pizzas in 2010. The interest in Bitcoin grew shortly afterwards, and the Bitcoin price rose until it reached nearly 20,000 US dollars per Bitcoin in 2017. On 10 November 2021, Bitcoin reached its all-time high so far, with a price of 69,045 US dollars per coin.

The most important milestones and events in the Bitcoin price so far were:

• 2009: 0.0008 $ / BTC
• 2010: 0.03 $ / BTC
• 2013: Bitcoin price reaches over 1,000 $ / BTC for the first time
• 2017: 19,666 $ / BTC
• 2018: BTC price temporarily drops below 3,000 $ / BTC
• 2021: All-time high of 69,045 $ / BTC
• 2022: BTC price falls below 20,000 $ / BTC
• End of 2022: BTC price rises above 20,000 $ / BTC

Bitcoin price history

The beginnings of Bitcoin

After the first known Bitcoin price of $0.0008 per BTC, the price initially increased only slowly. A key event in Bitcoin's history is the purchase of two pizzas for 10,000 BTC in 2010. From this first commercial transaction, a price of $0.03 per BTC can be determined. Due to the growing media interest in cryptocurrencies, the Bitcoin price chart in 2013 showed a value of over $1,000 per coin for the first time.

The Bitcoin hype

In 2017, Bitcoin experienced immense hype, pushing the price to a then all-time high of $19,666. It has been speculated that this interest was a result of targeted price manipulation. In 2018, demand subsided, causing the price per BTC to temporarily fall below $3,000.

Growing interest from major companies

In the following years, the Bitcoin price chart recorded a positive price trend again. Due to PayPal's plans to accept Bitcoin as a payment method, significant investments by car manufacturer Tesla in Bitcoin, and people's fear of inflation, the price reached a new all-time high of $69,045 per BTC on 10 November 2021.

Inflation, government regulation plans, and Bitcoin ban in China

In 2022, the first governmental measures to regulate cryptocurrencies were introduced. In China, Bitcoin was even banned completely. In addition, the number of alternative coins increased, some generating significant price gains. In combination with the collapse of the crypto platform FTX and the Terra blockchain, these developments caused great uncertainty and indecision among investors. As a result, the Bitcoin price fell below $20,000 per coin.

In anticipation of a declining inflation rate in the US, Bitcoin gained more interest among investors towards the end of the year. Thus, the price again surpassed the $20,000 per BTC threshold.

What we can learn from the Bitcoin price

The price history shows that fluctuations in supply and demand can lead to high volatility in the price per BTC. While the Bitcoin price chart has shown positive price trends since the introduction of the cryptocurrency, past performance is not an indicator of future value developments. Experts and analysts predict strong price increases for Bitcoin in the coming years. This estimated development is mainly attributed to a decline in inflation, improvements in the geopolitical situation, and increasing transparency and regulation of crypto companies through new legislation.

Bitcoin: Factors influencing the price

Bitcoin currently has the highest market capitalisation among cryptocurrencies. This means that the value of the coins in circulation is expressed in an established fiat currency. Due to its stable position, Bitcoin remains the most traded and well-known cryptocurrency.

Inflation and price manipulation

Due to the fixed maximum amount of 21 million Bitcoins and the regular halvings, it is unlikely that the number of coins in circulation will increase significantly, which would cause price inflation. Sudden changes in the BTC price due to a significant increase in supply are therefore relatively unlikely. However, in the past, influential investors such as Elon Musk have been able to influence the price of different cryptocurrencies through manipulative statements.

Bitcoin as a payment method in practice

In El Salvador, Bitcoin is currently fulfilling its intended function as a decentralised currency without the influence of governments or banks. The country has introduced the cryptocurrency alongside the US dollar as a means of payment. While this makes the population independent of international financial systems and not at risk of inflation, falling prices threaten the country's prosperity.

Due to the volatility of the currency, it’s difficult to plan one’s financial life with any certainty, which is why some experts consider the project in El Salvador to have failed. While investors can accept losses in the Bitcoin price and hope for an increase, Bitcoin's influence as a means of payment decreases in times of falling prices.

The security of cryptocurrency

While the blockchain itself is practically impossible to hack, the security of exchanges and wallets for storing Bitcoin presents a significant vulnerability. For example, hackers were able to steal 7,000 bitcoins worth 41 million US dollars from the cryptocurrency exchange Binance in May 2019. After such attacks are made public, the Bitcoin price often temporarily decreases as demand from investors initially drops. To make Bitcoin increasingly secure and effective, large companies are funding the development of the cryptocurrency. Among the biggest supporters are the blockchain company Blockstream, blockchain startup Lightning Labs, and fintech company Spiral (formerly Square Crypto).

Proper storage of wallets is crucial for the security of one's crypto portfolio. Additionally, passwords should be chosen securely and not shared. To recognise crypto scam schemes, investors can familiarise themselves with common phishing scams. This reduces the risk of falling victim to fraud.