Bitcoin Price Spikes

The price of Bitcoin spiked on Tuesday topping out at nearly $7,500. The price suddenly surged more than $600 in a 30 minute span, marking the highest the cryptocurrency has been in more than a month. Following suit were Ethereum and Bitcoin Cash, which also saw a 10% increase in value. Within an hour, the cryptocurrency market had moved from $272 billion to $292 billion, an increase of $20 billion.

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Speculation abounds as for the reason of the spike. Typically, volume precedes price and Bitcoin volume reached a 3-month high yesterday. There have also been several cases of institutional money entering the space.

It was reported this week that BlackRock, the world's largest asset manager, has set up a working group to look into blockchain technology and cryptocurrencies. CEO Larry Fink however, has stated that he does not see a "huge demand for cryptocurrencies." Hedge fund billionaire Steve Cohen is also moving into the space according to Fortune. His firm has invested in Autonomous Partners, which is a hedge fund that acquires cryptocurrencies. 

Last week, cryptocurrency exchange Coinbase announced they had received approval from the SEC to trade in securities. Since then, they have retracted their statement and say they have not received any regulatory endorsement. All of these things may have been contributors to the spike in BItcoin price. It remains to be seen if this was merely a price correction or if this is the beginning of a new bull market.


What is Bitcoin?

What is Bitcoin?

Bitcoin is a digital currency created by someone under the alias of Satoshi Nakamoto in 2009. Essentially, it is a form of electronic cash designed to work in relative anonymity without a central bank. People can send Bitcoins to each other through their phone or computer.

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How are Bitcoins created?

Bitcoins are created by a process called, "mining". This is done using specialized computer hardware to solve complex math problems. The miners are processing transactions and securing the network which then potentially rewards them with Bitcoin. As of 2016, 12.5 Bitcoins are mined about every 10 minutes.

How do I get Bitcoin?

As mentioned above, Bitcoin can be mined using specialized computer hardware.

You can also purchase Bitcoin online. The most popular exchange to buy from is Coinbase. There you can buy, sell, store, or transfer it. Bitcoin can be bought in USD at whatever the going rate is. This price is constantly fluctuating. 

You do not have to buy a whole Bitcoin. You can purchase a fraction of a Bitcoin. 

How many Bitcoins are there?

Only 21 million Bitcoins can ever be created. Currently, there are 17 million in existence. The remaining 4 million should be mined by the year 2140.

Should I buy Bitcoin?

No one knows what the future may hold. But every day, more and more people are entering the cryptocurrency industry. Always remember to only invest what you can afford to lose.