Bitcoin in Review

Bitcoin is a purely peer-to-peer version of electronic cash that would allow online payments to be sent directly from one party to another without going through a financial institution.

Ever since it was released way back in 2009, it has become a thorn in the eyes of governments across the globe. From developed countries to developing nations, all are trying to somehow ban it or control it. But the adoption of Bitcoin (BTC) among the masses has been rising due to the mining protocol. 

Apart from El Salvador, a Central American nation that made Bitcoin a legal tender, many small nations are eyeing it as a legal tender too, because its usage has crossed beyond boundaries. Bitcoin has become the first crypto coin which everyone wants in their wallet.

With just 21 million coins under supply, over 18.81 million coins already under circulation only 2.19 million are yet to be mined. Its market capitalization is close to $788 billion of the overall cryptocurrency market of $1.85 trillion as on 22 September 2021.

Bitcoin was developed in 2008 by a person or a group called ‘Satoshi Nakamoto’. It was an alternative option given to the world by Satoshi looking at the 2008 global financial crisis, which saw numerous banks and financial institutions fail. 

With governments bailing them out at the expense of taxpayers, the crisis brought into focus the fragility of the existing, centralized financial system. 

Bitcoin proposed a form of payment that eliminated centralized entities like banks and governments. 

Since 2009, Bitcoin has spearheaded the blockchain and cryptocurrency revolution across the world. On 14 April 2021, BTC reached an all-time high of $64,863 per coin.

Today, Bitcoin has become the most accepted cryptocurrency in the digital currency world today, as it doesn't follow any geographical borders. It does not belong to any government which makes it the best tool in terms of having complete transparency. 

How Bitcoin works

Bitcoin uses blockchain technology and has special electronic specifications of its own digitally. Each and every Bitcoin contains a piece of specific verified information that cannot be altered or rewritten. 

Transactions are recorded on multiple computers or devices across the world (also referred to as nodes). These characteristics make it impossible to retrospectively alter a block without altering all subsequent blocks.

Let’s check with an example. In a regular banking transaction, if User A sent $100 to User B, the bank (a centralized entity) is notified for initiating the transaction. Once the bank verifies that User A has the necessary funds, it updates its database. User A’s bank balance is reduced by $100 while User B’s balance is increased by the same amount. 

However, a similar transfer of Bitcoin follows a different path. Here, a centralized entity like a bank does not perform checks, and does not update balances. Instead, all the nodes of that particular blockchain will have to be involved in the transaction due to its decentralized design.

If User A sent one Bitcoin to User B, they must broadcast a message in the network so that other nodes can see it.

The nodes, or the users, then set out to solve a puzzle set out by the protocol, which requires them to hash transactions and other information in the block.

This process is known as mining, and those performing this task are called miners. The miners must keep hashing data until it solves the puzzle and then, a Bitcoin token can be sent to User B.

Finding a valid solution for the successful transfer of Bitcoin creates a new block, and generates a block reward (in Bitcoin) for the miner responsible. Once the transaction is added to the Bitcoin blockchain, all other nodes can see and validate it, and update their copies of the ledger to reflect it.

At the same time, User A’s crypto wallet (where she stores her Bitcoin) is updated to show it has sent one Bitcoin, while User B’s wallet is updated to show it has received one Bitcoin.

Institutional investors buying Bitcoin

The US-based business intelligence, mobile software and cloud-based services company MicroStrategy is the world’s biggest corporate holder of Bitcoin. It has recently added 5050BTC worth $242.9 million at an average price of $48,099 per BTC.

So far, the company now holds 114,042 bitcoins acquired for $3.16 billion at an average price of $27,713 per Bitcoin. 

Goldentree, a 45-billion-dollar asset manager is also looking to add Bitcoin to its balance sheets. According to US's Securities and Exchange Commission filings, Morgan Stanley and Bill Miller's Fund has purchased $240 million and $45 million shares of Grayscale Bitcoin Trust.

El Salvador has over 500,000 Bitcoin wallet users, first nation to adopt BTC as legal tender 

Ever since the adoption of Bitcoin as legal tender on 7 September, the number of consumers using the Bitcoin wallet Chivo in El Salvador has increased to more than 500,000. 

Salvadorans can download Chivo wallets and can also earn a bonus of $30 in Bitcoin. This is an incentive by the government to encourage citizens to adopt crypto usage.

President Nayib Bukele has said that after adopting BTC as legal tender many of the 6.6 million Salvadorans for the first time will get access to banking services. 

Adopting BTC will save millions of dollars in paying commissions on remittances, which constitute 20% of the country's GDP.

Price projection

Hovering at around $45,000 to $52,000 per BTC, many experts believe that BTC will provide multiple returns. 

  • According to Standard Chartered’s cryptocurrency research unit, BTC will touch $100,000 by the end of 2021 or early 2022. Other than Bitcoin, the bank's research team has predicted over 8x return for Ethereum at $26,000 to $35,000 per ETH.

  • AAX crypto exchange's head of research and strategy Ben Caselin also said that the price of BTC by this 2021 year-end will be around $100,000. 

  • A senior research analyst at the TIE, crypto data provider Tommy Schreiner said that despite all the economic turmoil across the globe, there is still a healthy chance that Bitcoin can reach $100,000 by the close of 2021.

  • Nick Spanos, co-founder of Zap Protocol, believes that El Salvador’s recent acceptance of Bitcoin as legal tender has the digital currency well on its way to hitting the $100,000 mark by the end of the year. 

With strong fundamentals and growing interest among nations, BTC adoption will increase further, as countries like Cuba, Paraguay, and Ukraine have decided to provide a legal framework to cryptocurrencies.  

Buy Bitcoin

Klever App is the best platform to buy Bitcoin. It provides users a secure self-custody crypto wallet, where users can store their Bitcoin. 

Other than Bitcoin, the app offers 300+ trading pairs in Klever Swap and access to ETH and TRX-based DApps in Klever Browser.

Klever also offers true and secure ownership of cryptocurrency. The security of Klever App is ensured by being built on top of Klever OS (Operating System), which uses advanced security mechanisms that completely protect the users’ private keys and funds.

The Klever crypto wallet ecosystem is used by over 3 million users worldwide with Klever App, Klever Swap, Klever Exchange and Klever OS.

Choose Klever ways for meeting your daily financial needs!

Jagdish Kumar
Klever Writer
Follow on Twitter

Download Klever Exchange

Share Klever News

Download Klever App