Posted On Thursday, Sep 06, 2018
In the First week of August, the Intercontinental Exchange (ICE) announced plans to form a new company, Bakkt, with the purpose to create an open and regulated global ecosystem for digital assets. The new company is expected to work with a marquee group of organizations that includes BCG, Microsoft, Starbucks amongst others to come up with an integrated platform that will ease the trading, storing and spending of digital assets. That could give a boost to digital assets like Bitcoin as it will ease market volatility. This isn’t the first time Wall Street has cozied up to digital assets. In the last two years, Wall Street has been introducing Bitcoin futures to help investors hedge their positions.
What is Bitcoin?
Remember the Bitcoin mania that had gripped the world a few months ago, where it could do no wrong and was trading at an absurd level of more than USD $13,000 per “coin”. Here is what the noise was all about and how there is almost a deafening silence around this now: Basically, a digital currency, Bitcoin is a platform that hosts a digital ledger on which people can mine, store and trade bitcoins, a digital form of currency earned through a computer algorithm and tied to no central authority. Bitcoin can be used to pay for things electronically, if both parties are willing. In that sense, it's like conventional Dollars, Euros, or Rupees, which are also traded digitally.
The Rise and Fall of the Bitcoin
As per Wikipedia, in 2013 prices of 1 Bitcoin started at USD $13.30 and rose to $770 by 1st January 2014. In 2015 prices started at $314 and rose to $434 for the year. In 2016 prices started at $998 and rose to $13,412.44 on 1st January 2018. There-after, numbers have been falling as low as $6,669.85 on 22nd August 2018. Bitcoin has recovered from June 2018, when it fell below $6,000 however; the overall price trend is scary in its volatility. The BSE SENSEX, like any other index in the world is also volatile and has been so especially since 2014. However that is nothing compared to the Bitcoin mania.
Source- Wikipedia, BSE
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