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What are the successes of Bitcoin in 2020?

What are the successes of Bitcoin in 2020?

  • 23 December 2020
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According to a Financial Times report, the year 2020 was named the year of the bitcoin organization. This naming is due to the acceptance of bitcoin by the world’s major financial institutions and organizations. Numerous investments made this year by many financial institutions and organizations in different countries of the world led to this nomination.

The Financial Times reported that millions of dollars invested in bitcoin by these institutions this year. It is a figure that continues to rise. A major purchase was made by MicroStrategy, which sold all of its $ 650 million worth of securities to buy bitcoins. The US insurance company MassMutual bought $ 100 million worth of bitcoins.

How has the Bitcoin financial market grown in 2020?

The market value of Bitcoin has surpassed that of the largest US bank. Recently, the value of the Bitcoin market rose dramatically to $ 383 billion, surpassing the JP Morgan market.

Currently, the value of the seventh-largest bank in the world, JP Morgan, is estimated at 267.1 billion dollars, which is 4.5% less than the market value of Bitcoin.

Based on a report by Cointelegraph, Bitcoin grows by 200% every year. Investment analyst Raoul Pal believes that the world’s largest cryptocurrency is ” conquering the world” given Bitcoin’s 200% annual return. The return on investment (ROI) of Bitcoin is estimated at more than 9,000 percent.

What has been the largest investment of major investors?

Following the outbreak of the Coronavirus and the release of support packages by the Federal Reserve, many investors moved away from traditional assets and, in response to the post-Corona crisis, turned to investing in bitcoin and gold. It has increased the correlation between gold and bitcoin price fluctuations in 2020.

Gold recently crossed the $ 2,000 per ounce mark, and Bitcoin began a new uptrend at the same time. The Bitcoin investor Max Keiser, recently announced that great billionaire Warren Buffett has invested in gold, which could push up the price of bitcoin.

What was the consequence of the bitcoin price jump for transaction fees?

While the Bitcoin price jumps and sets a new record, the fees of this cryptocurrency network will increase again. Currently, the average fee is $ 12. It is the highest number of commissions since the beginning of 2020. At that time, Bitcoin was in the early stages of its most recent leap.

We can consider the increase in Bitcoin network fees as a consequence of setting a new record for this cryptocurrency; Bitcoin price jumped 26% to a new high of $ 24,200 during this period. Bitcoin is trading in the $ 22,620.50 range on 22 December.

What has changed in the bitcoin transactions’ hash rate?

In August 2020, According to the CoinTelegraph, and based on data from the “blockchain.com”, the weekly average bitcoin network hash rate reached a new record of 129,075 (EH / s) per second. In the weeks before the jump, however, the network hash rate was steady.

Network hash rate is the amount of processing power miners use to authenticate bitcoin transactions. The higher the average hash rate, the more miners are confident that it will be profitable. So the correlation between hash rate and bitcoin price is strong.

What are the economic implications of the Halving?

The price of bitcoin has increased since Halving in May. According to the data analysis platform (Chainalysis), a large part of this price increase is due to the interest of corporate investors.

According to the CoinTelegraph, the price of bitcoin has more than doubled since the third halving event in May. The price of bitcoin has risen 110 percent, from $ 8,566 on May 11 to $ 18,610 on 17 August 2020.

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