Technically speaking, Bitcoin is a decentralized computer network. But this one has a special twist: Fearing inflation and currency devaluation, the first companies have exchanged parts of their account balances for Bitcoin. In El Salvador, Bitcoin has now become the second official state currency alongside the US dollar.
A “volatile” history
Bitcoin was launched in 2008 by an inventor who remains anonymous to date. In its early years, Bitcoin was a project for a fairly small group of IT professionals that wanted to improve the global financial system and began using Bitcoin for trades and investment. In 2013, the Bitcoin price briefly jumped above the US$1,000 mark for the first time, followed by a significant price drop and a few years of silence. Then, in 2017, Bitcoin reached the magic mark of 20,000 US dollars per Bitcoin. Again a significant price drop and a few years of silence followed. Then, in the spring of this year, bitcoin reached the $65,000 mark. Again, the price dropped significantly and is now hovering around $35,000 per bitcoin. What has happened over the years? Will Bitcoin come back again and again; only to pause for a few years at a time? As of today, the valuation of all Bitcoins combined is around $700 billion, which is about 6% of the valuation of gold. This means that Bitcoin has already reached a certain size. At least Bitcoin is so big that it deserves serious attention. Besides Bitcoin, there