This was my second JSR, not published in the article but I wrote about the current situation of Bitcoin.
Second Round for Bitcoin
Bitcoin is one of the most famous and largest cryptocurrency in the world. Bitcoin’s recovery from a severe downfall to nearly its original price can be due to several factors. The price of Bitcoin is heavily influenced by supply and demand, production, and competition between other cryptocurrencies, regulations, and media notice. Bitcoin is rare and has a maximum supply of 21 million, and the increasing demand for it influences its value. The importance of Bitcoin has resulted to affect the world. For instance, the introduction of Bitcoin to developing countries has aided economic development and helped counter inflation by using it as a new currency. Bitcoin’s decentralized nature enables individuals from these countries to trade with others globally, providing an alternative to centralized financial systems. However, Bitcoin’s price still fluctuates in alternating periods.
Bitcoin’s influence on individuals and countries is significant. In third-world countries, Bitcoin is used as digital money for online transactions and has high adoption rates due to its decentralized nature and its ability to be traded globally. In developing countries, Bitcoin adoption can be widely observed among investors, miners, and traders, and its value is influenced by institutional adoption and regulatory changes. However, Bitcoin’s decentralized system has raised concerns among governments, as it undermines their authority and can be used by individuals to circumvent capital controls.
Bitcoin’s price is also affected by market news and media depiction, where positive news increases its value and negative news decreases it. The involvement of large industries and corporations that could either sell or buy Bitcoin on a large amount at once also causes significant fluctuation in the price. Despite its potential to increase, Bitcoin’s volatility and susceptibility to illegal and unethical actions such as investment scams, remains a concern.
In conclusion, Bitcoin’s price increase was influenced by a variety of factors such as supply and demand, regulatory changes, market flow, and media depiction. Its influence on individuals and countries, both in aiding economic development and raising concerns among governments, underscores its significance in the worldwide financial landscape. However, its volatility and susceptibility to loopholes highlight the need for caution and careful oversight in its use and investing.
Hajoon Song, Grade 10
International School of Beijing
[Source: From YahooFinance Bitcoin chart]
Bitcoin has gone through a severe decrease recently.
[Source: From YahooFinance Bitcoin chart]
On a whole spectrum, bitcoin has increased in a significant value.