Bitcoin e-currency soars to about $50,000
Bitcoin has continued to rise in 2022, with many investors putting money in it. Financial watchers have warned that investing in crypto is dangerous due to its volatile nature.
Bitcoin increases to $50,000
This digital coin has increased in value to more than $50,000. Bitcoin which was created some years ago has seen its value increased to about 75% alone this year. Bitcoin with other crypto are generated by algorithms. The value, experts say comes from the infinite numbers which are generated daily.
However, financial experts have said this mode of payment is very risky because their value is unstable and could move up or down. However, this year's increase is partly because Elon Musk purchased about $2 billion worth of bitcoin when he started his Dogecoin. Proponents of Bitcoin have said it stores a lot of digital value and is a type of electronic gold. If the comparison with gold is true, then it will only get better.
Bitcoin investors should be careful -FCA
The potential of this currency at the present rate is roughly $959 billion which is about 10% of global gold according to John, who heads Ava labs, a tech company that deals in cryptocurrencies. The FCA has warned those investing in bitcoin to be very careful as they may lose heavily should it close down.
Although it is regarded as a safe way to keep money, bitcoin comes with various problems. The login itself is very long and cannot be stored in memory, except you are Albert Einstein. People will need to keep it in a safe area, the question is what if it was stolen?.
Another crucial issue is that since it doesn't have next of kin like banking, what happens if an investor dies? Countries like Nigeria and India have warned citizens that they may place a ban very soon as it is affecting financial institutions.