The History of Bitcoin and Its Popularity Currently

by Lalithaa


Bitcoin is an online currency that has experienced unprecedented growth in recent years. In November 2013, its price reached record highs. Bitcoin began the month at $213, doubled to $435 within 12 days, and tripled to more than $1,200 a month later. By the end of the year, it was valued at $805. This explosive growth triggered the People’s Bank of China to ban the use of bitcoin in financial institutions. If you are planning to mine Bitcoin, you should not worry because BTC protects against all sorts of theft.

Price fluctuation

The price fluctuation of bitcoin is mainly due to the emotions of investors, who can lose confidence and sell their bitcoins, and the fact that there is no central authority that controls the supply of the cryptocurrency. This means that the price of Bitcoin can fluctuate by as much as 30% or more. This volatility is much higher than that of most other traditional financial assets. The 30-day historical volatility of Bitcoin is more significant than that of gold, the HS300, and the S&P 500. As a result, Bitcoin has garnered considerable research attention in recent years.

Researchers have studied the underlying factors that affect the price fluctuation of Bitcoin and other cryptocurrencies. Some have examined users’ sentiment on social media sites, such as Twitter, and on web search query volumes. Some have even looked at how the Bitcoin price fluctuates about the importance of web searches.

In the present work, we focused on analyzing user comments in Bitcoin forums. We could predict price fluctuations with over 80% accuracy by analyzing these posts. This study also found that the user comments on Bitcoin-related online forums influenced the price and transaction count. With this information, we can make informed decisions about how to invest our money in Bitcoin.

Impact of COVID-19 pandemic on price

The COVID-19 pandemic has affected the price of precious metals, such as gold and silver, but the effect on the cost of bitcoin is less clear. The number of cases has no impact on the price of gold and silver, but the number of confirmed cases strongly affects Bitcoin prices. The number of confirmed cases and recognition of COVID-19 have a positive reciprocal relationship.

The COVID-19 pandemic has disrupted business in several countries and caused economic uncertainty. The uncertainty has favored the price of cryptocurrencies, including Bitcoin. However, the impact of this pandemic on health outcomes is unclear.

Cryptocurrency market dynamics are increasingly important, and understanding how these changes occur is essential for investors and policymakers. In this paper, we examine the effects of the COVID-19 pandemic on the price of the ten most commonly traded cryptocurrencies. We also compare the behavior of cryptocurrencies to other less volatile markets, such as the WTI and BRENT crude oil markets.

The COVID-19 pandemic provides the first widespread bear market conditions since the emergence of cryptocurrencies. The pandemic spans from 11th August 2015 to 28th August 2020 and tests whether cryptocurrencies have haven properties. Using the GARCH model, we can measure the impact of commodities and global stock prices on Bitcoin prices.

The COVID-19 pandemic had a dramatic effect on bitcoin. Although Bitcoin was the most efficient cryptocurrency before the outbreak, it became less efficient in the face of the epidemic and was outperformed by Ethereum. Coinbase’s data were obtained from the FRED economic database. We also observed that the price of bitcoin increased by 300% during the pandemic. This price increase was partly due to financial market investors seeing the benefits of using bitcoin as a hedge against inflation.

In addition to Bitcoin, the COVID-19 pandemic has significantly impacted other CCs, including gold and silver. It may affect the price of these assets, mainly if they are highly volatile. As a result, it may affect the optimal portfolios for both short and long-term investors.

The first set of effects on the cryptocurrency market has been dominant. This is why the crypto market has been able to flourish. Meanwhile, medical treatment and vaccines have removed much uncertainty surrounding Covid-19. The second set of effects has yet to materialize.

The global COVID-19 pandemic has disrupted the normal business flow, causing more significant financial uncertainty. As a result, investors in the crypto market have been encouraged to move their investments into this area. However, this effect has since reversed.

While Bitcoin is more volatile than other currencies, the cryptocurrency market is less risky than other assets. During global crises, people are reluctant to trade in other assets. In addition, most cryptocurrencies are closely tied to Bitcoin. Therefore, when an international problem occurs, Bitcoin prices will tend to fall.


Bitcoin is an international currency that uses blockchain technology to create a unique unit of value. Its launch took place in early 2009, and it was worth around $0.02 per bitcoin by July. But, it wasn’t until the fall of 2010 that Bitcoin began to gain traction. The first Bitcoin transaction was a simple exchange of 10,000 Bitcoins for a pizza. Today, one bitcoin is worth more than $100.

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