Investing in Bitcoin is easier than ever. This after the US introduced Crypto Funds (so-called EFT) at the beginning of the year, which make it easier for the American population to buy and sell cryptocurrencies.
DO NOT MISS: Storbanken: Now inflation is rising again
The authorities say yes to Bitcoin
Simplicity is a factor. But it also inspires confidence in the digital currencies that heavy American institutions and authorities are building out their infrastructure around Bitcoin.
The Swedish crypto exchange Three responds like this News24 in an email:
“Over the course of yesterday, the ETFs bought approximately 10,000 bitcoins, meaning that the available supply is literally being vacuumed up by these funds over time”.
When demand is greater than supply, the price of digital currencies also rises.
50,000 dollars per Bitcoin
Bitcoin is now valued at over $50,000 per unit. Overall, the market value is valued at 982 billion dollars, or 10,000 billion Swedish kronor. It is an absolutely breathtaking sum that can be compared to global giants such as Google and Meta, or the total global value of certain precious metals.
It reports Cointelegraph.
Just a few days ago, the digital currency was valued at $46,000 per unit.
Demand sky high
Later this year, the mining rate will decrease on Bitcoin. Currently, 900 units of Bitcoin are created every day, which is by no means enough to satisfy demand.
From April onwards, however, the cryptocurrency will only be produced in the edition of 450 a day.
April 20 milestone
Since it is expected that this will lead to further rising valuation of Bitcoin, it is already increasing demand, writes the crypto exchange Trijo:
“The market is also looking ahead to the halving of the block reward which is expected to occur on April 20 this year. Then 450 new bitcoin will be created instead of 900 which is today’s level”.
Each block in the chain creates 6.25 bitcoin right now. After the halving, each block will create 3,125 new bitcoins.
A finger of warning
Although the authorities approved trading with EFT and thus Bitcoin, the same authorities still warn about digital securities and the risks associated with them:
“Investors should continue to be cautious about the many risks associated with Bitcoin and products whose value is tied to crypto,” writes SEC’s President Gary Gensler earlier this year, in connection with the approval.
Read more about finance:
Storbanken: Now inflation is rising again
Financial earthquake when the real estate giant is filed for bankruptcy
Vulnerable white-collar workers when unemployment rises in 2024
Industrial crisis: Volvo, Sandvik and Ericsson lay off thousands
Unemployment: The professor on the strange trend: “Unusual”