New Bitcoin ATH
(ALL TIME HIGH)
Summary
Bitcoin Reaches a New All Time High Price of $61,683 US Dollars
The Price of Bitcoin Fluctuates According to Exchange Rates Across the World
Bullish Signal as People Are Beginning to Realize Bitcoins Scarcity
Background
Bitcoiner,
On March 13th, 2021, Bitcoin reached an all time high price of $61,683 US dollars.
This short article will describe where the price of Bitcoin comes from.
Unlike your bank, Bitcoin is open for business 24 hours per day, 7 days per week, for the entire 365 days of the year. That means its exchange rate is constantly changing throughout the day.
Exchange rate is the price of one currency in terms of another currency. As an example, imagine you were visiting Europe and you needed some Euros to purchase food. You would need to exchange your United States Dollars for the European Euro. Currently, the exchange rate is 1.2 US Dollar exchanges for 1 European Euro. This means 1 US Dollar is worth slightly less than 1 Euro.
Bitcoin also has an exchange rate, except Bitcoin is bought & sold by the entire world 24/7/365. You can see different exchange rates for Bitcoin across the world on Paxful’s website.
You might have noticed how Bitcoin’s price fluctuates throughout the day. The image above shows the lowest price and highest price Bitcoin was exchanged for in the last 24 hours:
24h Low - $56,217
24h High - $61,683
Bitcoin’s price is calculated by averaging the exchange rates across many popular exchanges. Since the price of Bitcoin is constantly fluctuating around the world, so does its price.
It is worth it to mention, Bitcoin can be bought and sold Peer 2 Peer (P2P). That means you can ask me to buy some of my personal Bitcoin in exchange for whatever price you and I agree on. No middleman such as a bank or exchange needed.
In this P2P example, the price of Bitcoin can also fluctuate. If you are a personal friend of mine, I will probably give you a discount on the exchange rate of Bitcoin. In this case, the price of Bitcoin comes from whatever I offer to you and the price you agree on!
Quick Story
A friend of mine recently bought Bitcoin from me through the P2P method. My friend has been helping me out with some personal stuff recently, so I gave them a discount on the price of Bitcoin. My friend and I agreed upon an exchange rate, then they gave me cash. After I received the cash, I sent them Bitcoin from my personal wallet. Everything about this transaction is completely legal if I choose to report the exchange on my taxes next year.
I bought more Bitcoin with the cash I received for this exchange :)
Why is this Important?
Bitcoin’s new all time high price reached today is important because it shows how valuable Bitcoin is today. Even if you have no clue what Bitcoin is, you have to wonder “how is some virtual coin trading for $61,683 today?”
At a price of $100 US Dollars per Bitcoin back in 2013, Bitcoin was somewhat of a speculative asset. At a price of $61,683 US Dollars per Bitcoin today, Bitcoin has blown past being speculative. Bitcoin is now the premium scarce asset to have.
Bitcoin is now worth more than Facebook as its total market value recently passed $1 Trillion Dollars. Even at this new all time high price, I continue to buy Bitcoin.
If you do not own any Bitcoin yet, scroll down. I posted a link below to get $10 worth of free Bitcoin through the exchange I personally use to buy Bitcoin. Takes less than 5 minutes to sign up! It also helps keep The Hoodie Crypto Letter free for everyone.
Happy Saturday,
-Pod
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Eric Podwojski
Founder, Bitcoin EDU
Twitter: @epodrulz