The Value of all Bitcoins in the World has Reached the Cosmic $1 Trillion for the First Time Since 2021
The price of a single Bitcoin has soared above the $51,000 mark for the first time since December 2021. As a result, its total market capitalization, representing the aggregate value of all coins currently in circulation, has exceeded $1 trillion, CNBC reports.
Bitcoin reached its record high value in November 2021, with each coin fetching over $69,000. However, its value gradually declined due to various adverse factors, including bankruptcies of several major cryptocurrency exchanges and companies engaged in cryptocurrency lending. Consequently, in January of last year, the price of Bitcoin dropped below $17,000. Subsequently, the leading cryptocurrency experienced a slight increase in price and remained within the range of $20,000 to $30,000 until mid-autumn 2023.
The so-called "rally" or rapid increase in the value of Bitcoin resumed in November 2023 amid expectations that the U.S. Securities and Exchange Commission would effectively allow trading of this digital asset on traditional exchanges. This eventually happened in January of this year. Overall, in 2023, Bitcoin grew by more than 150%, and in the first one and a half months of the current year, it appreciated by over 21%.
The current rise in the value of Bitcoin is attributed to investors anticipating the "halving" - an event that occurs every four years according to Bitcoin's rules. It involves halving the miners' rewards — individuals who mine Bitcoins using specialized equipment. Essentially, thanks to the "halving," the production of Bitcoins becomes twice as expensive, which drives up its price. It is worth noting that "halving" has always preceded Bitcoin reaching new historical price highs in the following months. This event is currently expected in April 2024.
The Gaze previously reported that the authorities of the Polish city of Minsk Mazowiecki have launched their own cryptocurrency, which residents can spend at local businesses and stores. The token, named after the city, MinsCoin, can be used for trading at the municipal level and participating in community projects. City residents can earn this digital currency by participating in projects aimed at achieving various social or economic goals.