Well, Bitcoin and fiat currencies (such as the dollar and the euro) are very different types of assets. Traditional currencies are backed by an entire government and they are also legal tender. This means that it is a legal obligation to accept them as a means of payment – which is not the case for any private crypto-currency. El Salvador being the sole exception since their decision to adopt Bitcoin as legal tender recently. Understanding Bitcoin – What is Bitcoin in-depth? Bitcoin Cash (launched in August 2017), Bitcoin Gold (launched in October 2017), and Bitcoin Satoshi’s Vision (launched in November 2018) were all a result of a hard fork in Bitcoin’s network.
Governance legislation on cryptocurrency that came into force in Korea appeared to influence the Bitcoin market too. News commentary on the revised bill of the Act on Report and Use of Specific Financial Transaction Information on virtual assets which was approved at a cabinet meeting hit the press in June 2020. The bill outlined the report system for cryptocurrency exchanges and requires virtual asset operators to report their business to the financial authorities. This news corresponded with a −6% Bitcoin price change on 11 June 2020, evidenced in the 2020 graph above. In the Bitcoin network, nodes fulfill a very important role. The crypto markets faced significant turbulence in 2022, with investor panic, reminiscent of bank runs, exposing underlying liquidity concerns and the absence of tangible collateral. These challenges, combined with regulatory scrutiny, have prompted several financial institutions to reevaluate their crypto endeavors. Despite these setbacks, nearly 10% of the US population will own crypto by 2024, according to Insider Intelligence’s April 2023 forecast, accounting for 26.0 million investors.