What is Bitcoin and how is it made?
Behind the digital currency Bitcoin is the complex blockchain technology. It works like a virtual cash register, which allows transactions to be carried out directly between the parties. It is no longer necessary for a trader to do business like a stock market.
The principle of a blockchain is that encrypted data is stored on multiple computers over all transactions. New information such as additional blocks are attached to the chain of previous data in chronological order - hence the name (block-chain). Since the collected information is kept in many places and is reconciled every time by different computers, manipulations are immediately noticed.
In contrast to the official currencies such as euro and dollar, there is no central bank behind the bitcoins. Rather, the cyber money is produced by users themselves on powerful computers. The amount of money is limited, at some point there should be a maximum of 21 million bitcoins, which can be pocketed for payments.
Bitcoin approaches the brand of 6000 dollars. What is the last trigger for the jump?
That is hard to say. It looks as if the banks are increasingly pushing into the region, because the interest of their clients, like hedge funds, is growing strongly. Goldman Sachs, for example, is thinking of trading with cryptos such as bitcoin and ethers. In addition, the well-known US investor Michael Novogratz has announced that he wants to invest a fund of 500 million dollars to invest in the region.
How much is the "market capitalization" of Bitcoin meanwhile?
The stock market value of Bitcoin is $ 95 billion.
How relevant is Bitcoin currently compared to gold or dollars?
The trading volume of Bitcoin is between 100,000 and 200,000 Bitcoin depending on the trading day, which is between 500 and one billion dollars a day at a price of 5000 dollars. The trading volume of gold futures on the New York Commodities Exchange (COMEX), a subsidiary of the CME Group, reaches around 22.5 billion dollars per day depending on the price
Who is leading?
Nearly 60 percent of global trade is held in Japan, 25 percent in the US and 10 percent in South Korea.
Bitcoin runs significantly better than Ethereum. Why?
Because most recently investors have changed money from Ethereum to Bitcoin. Bitcoin is virtually the "gold standard" among cryptoscripts. Investors are increasingly entering Bitcoin because the stock market value is much larger than that of Ethereum (31.2 billion dollars). When investing money usually flows into the larger values, so it is also on the stock market.
What are the risks that the hype ends abruptly?
The hype would end, for example, if Japan or the USA would not only prohibit the trade with Bitcoin, but would also punish the property.
The central banks hold on to their loose monetary policy. Does this help the cryptocurrencies?
Yes. Bitcoin also reflects the mistrust of investors against the Fiat currencies such as the dollar, euro, or yen. It is not surprising that the bulk of Bitcoin's global trade is in Japan, where the bank is spending a lot of money. With a government debt of around 240 per cent of the annual economic output - by far the world's highest value - the state seems to have no other way out but gigantic money pressures. The US debt is 106 percent, the euro zone is 90 percent.
Is Bitcoin a question of faith?
Bitcoin can not be evaluated, but the rise of Bitcoin is not to be stopped because of the numerous possibilities of the blockchain technology. At the same time, the stock market value of Bitcoin is still very small in relation to that of gold. For example, the world's gold reserves are already around 180,000 tonnes. They have a value of 7.5 trillion dollars. Bitcoin still has a lot of catching potential.
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