The value of digital currency Bitcoin has reached its highest level in its 15-year history.
Australian cryptocurrency enthusiasts have said the current surge in Bitcoin's value is like entering a “new world” of cryptocurrencies, according to experts. The current price increase has cheered cryptocurrency enthusiasts, as just two years ago, major problems were causing billions of dollars in losses in the Bitcoin industry. online mail.
According to Jackson Zeng, a Melbourne-based Bitcoin broker, the reason for the unexpected increase in Bitcoin value is that US regulators approved 11 new Bitcoin investment methods in January. These are known as exchange-traded funds (ETFs) and allow anyone to easily purchase Bitcoin like stocks of a company.
Since then, nearly $1 billion has been invested in Bitcoin ETFs in the United States. The largest, BlackRock's iShares Bitcoin Trust, holds more than $1 billion.
Why is Bitcoin soaring in value?
Well, in April something called “halving” will happen. This means that rewards for people who help keep Bitcoin running will be cut in half.
Currently, approximately 900 new Bitcoins are created every day. Cutting it in half would be 450 bitcoins per day. This has happened before. Each time that happens, the value of Bitcoin rises a lot.
Experts such as cryptocurrency trader Michael Sloggett say this time is different and exciting. “I firmly believe this is very different from anything we’ve experienced before,” Mr. Sloggett said.
“It's a whole new world. We're in a new and exciting place we've never been before. Everything is possible. It's all up and down.”
They believe that large corporations are buying a lot of Bitcoin and regular people haven't even started doing much yet.
David Haslop, who launched the Australian Crypto Convention, is also optimistic. He believes that after halving, the value of one Bitcoin could exceed 250,000 in a relatively short period of time.
Experts are currently awaiting a decision from the U.S. Securities and Exchange Commission (SEC) on whether to allow individuals to invest in another cryptocurrency, Ethereum. They expect to make a decision by May 23. If the answer is positive, the market could be significantly affected.
Cryptocurrency analysts are watching to see what happens next as Bitcoin's value continues to make headlines. Analysts also believe that the cryptocurrency world is entering an interesting phase.