The Rise of Bitcoin


The Rise of Bitcoin

Bitcoin was the world’s first ‘virtual currency’ – i.e. an unregulated digital currency held in a blockchain network with no centralised banking authority.  

In 2008, a paper outlining the ideas underlying the Bitcoin system was published by Satoshi Nakamoto (a pseudonym). One year later, the Bitcoin (BTC) system was developed, apparently under Nakamoto’s direction. In 2011, the one bitcoin was worth one dollar, but by January 2021, the price had exceeded $40,000. That is to say, the price has increased 40,000-fold in 10 years.

Reasons for the rise of Bitcoin

1. Recognition

Major companies have purchased large amounts of bitcoin and have approved the use of bitcoin in the purchase and sale of goods, which has created a lot of buzz and increased awareness of the currency. As a result, more and more people are buying bitcoin, and so the demand is increasing, causing the price to soar.

2. Increase in the number of trading venues

The increase in the number of exchanges trading virtual currencies has encouraged the circulation of bitcoin in the market and made it easier for people to buy bitcoin. This has led to an increase in the volume of bitcoin transactions, more people buying, and increased demand.

3. Limited supply

The number of bitcoins issued is capped at 21 million, which intensifies the competition among potential buyers. 

4. Impact of the currency crisis

The global economy is currently unstable due to the coronavirus, and more and more people are afraid that the value of legal tender such as the dollar and the yen will decrease. As a result, many people are buying virtual currencies such as Bitcoin, which are soaring in value.

Whether or not bitcoin will replace legal tender in our daily lives remains to be seen, but with more and more people turning to virtual currencies, it has definitely triggered an increasingly popular trend in the global economy. 







  1. 認識
  2. 取引所の増加
  3. 供給が限られていること
  4. 通貨危機の影響



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