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MIL OSI Translation. Region: Russian Federation –

Source: State University of Management – Official website of the State University –

Source: 360

The Bitcoin exchange rate broke a historical record – its price exceeded 71 thousand dollars. And this is not the limit. “360” figured out what is happening with the world’s main cryptocurrency, and whether investors should now break into the crypto market.

Bitcoin is now experiencing another period of rapid growth. In the first months of 2024, its rate increased by 68%, and if you look at it since the beginning of last year – by 330%.

There are several reasons for the sharp rise in Bitcoin right now. One of them is that in January 2024, spot exchange-traded funds based on this cryptocurrency were launched on the American stock market. Their issuers are the largest international investment companies, and their trading volume reaches $10 billion per day. At the same time, today miners around the world mine about a thousand bitcoins per day. So demand exceeds supply, and the price is expected to rise.

Maxim Chirkov, a professor at the Institute of Economics and Finance at the State University of Management, explained to “360” that the Bitcoin rate was also affected by economic instability in the world.

“But in 2024, the Bitcoin rate is affected by the expected instability in the economies of Western countries,” the economist emphasized.

Another factor that has a powerful impact on the cryptocurrency rate is the upcoming Bitcoin halving, which will occur in April of this year.

Bitcoin halving is a mechanism embedded in the cryptocurrency software algorithm. Every four years, its production is halved. This helps prevent the uncontrolled growth of the bitcoin mass.

Halving means that the cost of Bitcoin will double, since it will take twice as much electricity to create one coin. At the same time, Bitcoin will become an even more scarce commodity, which could again increase its price.

“Accordingly, usually after halving and before halving there is an increase in the [rate] of this cryptocurrency, since investors understand that the number of bitcoins entering the system will be much less,” noted Maxim Chirkov.

In addition to high volatility and unpredictability, Bitcoin has another problem – opacity, the expert noted. This means that the cryptocurrency rate may be affected by non-market mechanisms.

“I will not recommend anyone to buy Bitcoin, because it is not clear who organizes all this. What actions will be taken with the system. You can say as much as you like that this data is backed up, but, in any case, someone controls the system. And various malicious actions are possible in the cryptocurrency system, which in fact have already happened in history,” explained Maxim Chirkov

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360

The Bitcoin exchange rate broke a historical record – its price exceeded 71 thousand dollars. And this is not the limit…

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Note; This information is raw content directly from the source of the information. This is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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