Why Bitcoin is up +62% respect to the last year

The cryptocurrency traded at $31,250 according to CoinGecko, an increase in value of 2.4% compared to the previous day

by Lorenzo Ciotti
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Why Bitcoin is up +62% respect to the last year

Bitcoin has broken through 30 thousand dollars a few days ago. As Cryptonewmedia reported on July 3, 2023, Bitcoin is back to its one-year high. The cryptocurrency traded at $31,250 according to CoinGecko, an increase in value of 2.4% compared to the previous day.

This is the highest price recorded since June last year and according to many this jump would be linked to the news that BlackRock would re-apply for a Bitcoin ETF spot. In the last year Bitcoin has increased by 62%, despite the difficult macroeconomic situation globally and in the US, with inflation reaching its peak in over four decades at 9.1% and the Federal Reserve increasing the interest rates of 75 basis points.

About the Bitcoin

Bitcoin is not classified as a currency, but as a currently very volatile store of value. Unlike most traditional currencies, Bitcoin does not use a central body or sophisticated financial mechanisms, the value is determined solely by the supply and demand lever.

It uses a database distributed among the network nodes that keep track of the transactions , but uses cryptography to manage functional aspects, such as the generation of new money and the attribution of ownership of bitcoins.

The Bitcoin network allows for the pseudo-anonymous possession and transfer of coins; the data necessary to use one's bitcoins can be saved on one or more personal computers or electronic devices such as smartphones, in the form of a digital wallet, or kept with third parties that perform functions similar to a bank.

The bitcoin wallet has an address identified by an alphanumeric code which has between 25 and 36 characters between numbers and letters; it is the only data to be communicated to receive a payment that will enjoy a certain degree of anonymity, but will be publicly and immutably visible on the blockchain forever.

You must be very careful when transmitting the alphanumeric code as any errors do not allow you to cancel the operation and cause the loss of money. You can receive payments more simply by scanning QR codes. In any case, bitcoins can be transferred across the Internet to anyone with a bitcoin address.

The peer-to-peer structure of the Bitcoin network and the lack of a central body make it impossible for any authority, governmental or otherwise, to block transfers, seize bitcoins without possession of the relevant keys or devalue due to the entry of new currency.

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