When are the bitcoins the lowest

This is how rich you would be today if you had invested in Bitcoin in 2009

The Bitcoin course chases from record to record. Media like the FAZ recently spoke of an "unleashed" Bitcoin. In fact, the price hit a new high in mid-February 2021. The current rate is just under $ 50,000. The cryptocurrency has seen an unprecedented rise since it was founded in 2009.

At that time, Bitcoin had no value that could be quantified in other currencies - at the end of 2009 it was just 0.08 US cents. Because of the increasing media attention, that changed in the following year. The Bitcoin experienced a significant price increase. Nevertheless, the cryptocurrency based on the blockchain principle was worth a maximum of 0.25 US dollars in 2010.

So anyone who bought 160 Bitcoins for $ 40 in 2010 could look forward to a fortune of almost $ 8 million at the moment (as of February 24, 2021).

Huge price fluctuations are the order of the day

However, Bitcoin is increasingly an object of speculation and investment - which, among other things, leads to huge price fluctuations. This can currently be clearly seen. While the price was around 20,000 US dollars at the end of 2020, it rose almost threefold by mid-February 2021 - only to lose more than 10,000 US dollars in value within a few days.

An article in Wirtschaftswoche explains how this is possible. Accordingly, the current price fluctuations are mainly due to one person: Elon Musk. When he announced that Tesla had invested around 1.5 billion US dollars in Bitcoin, the price had risen enormously. Last weekend, Musk described the Bitcoin price as high on Twitter. The course fell promptly.

Voices warning of Bitcoin and speaking of a huge bubble have been around for a long time. As early as July 2017, the American investment bank Goldman Sachs predicted that Bitcoin could fall low - and then rise to a record high. That was what the “Business Insider” reported at the time. Due to the price fluctuations, the time also suggested to potential investors to only invest as much in Bitcoins as they can cope with in the event of a total loss.

Bitcoin growing in popularity

Despite the risks, the spread and popularity of Bitcoin is steadily increasing. Tesla is now by no means the only listed company that has anything to do with cryptocurrency - for example, by investing in bitcoins or offering payment via it. A recently published article on the specialist portal “finanzen.net” names other examples - such as the US bank Silvergate Capital, the Canadian fintech company Mogo or PayPal.

With this development, however, Bitcoin is moving further and further away from its original intention. The digital currency was initially intended as an interesting thought experiment: As a so-called “peer-to-peer payment system”, a possibility was to be created to process direct transactions from computer to computer without an intermediary institution such as a bank.

At that time, no one yet probably could have guessed that the Bitcoin exchange US dollar will rise within a decade from 0.25 to 50,000.

Source cover picture: © PIRO4D / pixabay.com