It was in March 2020 when Bitcoin was estimated to be worth 8K USD. At the end of the year, it has gone to touch around 29K USD. Now, it is reaching 60K USD per Bitcoin unit. In order to understand the surge, you need to check the fundamentals of the same. It was in 2008 when a man called Satoshi Nakamoto came up with the idea of cryptocurrency with a vision to avoid the global recession. In a way, he was successful in doing so. He introduced the same as a peer-to-peer electronic cash system over the web. This came when Lehman Brothers failed to bring in the market the global financial crisis. It was in 2008 when the crisis came to embark upon with a complete breakdown of trust along with several raised questions regarding the cultural norms found in financial companies. With the current traditional system operating mostly with banking along with the people seen as corrupt and manipulated by a few, the vision of Satoshi is to create a new digital currency called Bitcoin.
As per their understanding, the current system of traditional money and banking seemed very much manipulated and corrupt, and the creation of bitcoin came like a peer-to-peer payment option with the help of a technology called a blockchain. This very bitcoin system is seen coming up with radicals that can help in the current bank banking system. With the help of technologists coming up with the idea of creating the denationalized currency and adding strength to the economic foundations, digital currency was introduced in the market. The technologists are able to contribute to the idea when it comes to creating with the help of this digital currency. The bitcoin project is able to come up with several greater changes like it used to decentralize the creation of currency along with the management to people. Bitcoin was seen doing a great reality in order to come out with multiple players that offer private digital currencies. For more information you can visit this trading app.
But in this negative world, it would be difficult to multiply the number of players in the field of digital currency. But with things going bad outside, even the digital currency is not gaining that kind of response which the makers were seen expecting. Money can be seen in three different broad functions, like the medium of exchange along with the account in order to store value. These digital currencies are seen serving three functions. Rather the digital currencies are becoming digital assets that are seen starting up trading with any other kind of security but without any business model. In this phase, one can find a number of challenges are seen coming up with the currencies and seen coming up with neglect by the central banks. However, on the other side, we see many of the negative elements in it.
In the year 2018, we see Facebook coming with the new digital currency called Libra that can be used for payments along with transferring with the help of a large subscriber base of Facebook. The value of the Libra can be seen getting stable backed with the reserve of fiat currencies. This has become a new idea when the central bankers are seen coming up. The central banks that are seen starting up with their digital currencies like the central bank digital currencies. But the makers of the digital currency have reasons to feel dejected as they can see Bitcoin becoming digital currencies in order to learn how things are moving ahead in the creation of the CBDCs.
The current surge of Bitcoin seems to be very much difficult to own. If the world is seen preferring the digital coin with Bitcoin, one can see things turning up in its favour. However, there can be exceptions to the fact that Bitcoin lovers now forget the words of Hyman Minsky, calling it to be seen as money that is seen coming up with things getting accepted. The state seems to play a vital role when it comes to making digital money acceptable all across the world. The state, however, is preventing people from using it rather than promoting it. But with options like levying tax on using Bitcoin can open new ways in getting the digital currency to work in the modern-day market. Bitcoin, along with the other digital currencies, if it gets the chance of becoming a legal tender, then things would change.