Bitcoin and Ethereum, the giants of the crypto world, stand out as the determinants of digital finance. However, speculation about their future remains uncertain in this vast market. Here's a glimpse into the complexities of this volatile market:
Bitcoin, introduced in 2009 under the pseudonym Satoshi Nakamoto, is the first cryptocurrency to offer a decentralized, secure, and transparent payment system. With its limited supply of 21 million units, Bitcoin assumes the role of a protected digital gold against inflation.
The price of Bitcoin is determined based on the balance of supply and demand. Factors such as user adoption, media interest, technological developments, regulations, and speculation affect demand, while mining determines the supply of new Bitcoin. Mining rewards halve every 210,000 blocks, leading to a decrease in supply and an increase in price.
Bitcoin's market capitalization is approximately around 1 trillion dollars, constituting about 60% of the entire cryptocurrency market. However, Bitcoin's price has experienced significant fluctuations in the past year. For instance, it surged from around $29,350 at the beginning of 2023 to $51,792 at the start of 2024. Yet, it faced a substantial correction after reaching a record high of $64,863 in April 2023.
On the other hand, Ethereum stands out as a platform where smart contracts and decentralized applications operate. Unlike Bitcoin, Ethereum provides more than just a payment system; it offers a programming environment. Ethereum's price has shown greater growth than Bitcoin over the past year, rising from $730 at the beginning of 2023 to $3,951 at the start of 2024.
However, the future of Bitcoin and Ethereum remains uncertain. While predictions vary, investors should proceed with caution and conduct thorough research in this volatile market.
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