Tuesday, October 19

Bitcoin: 6 questions to understand the largest of the cryptocurrencies, how it works and why it is dangerous


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  • BBC World News

Bitcoins

Image source, Getty Images

Caption,

A tweet from Elon Musk dropped the price of bitcoin by as much as 15% in one day.

When Tesla CEO Elon Musk announced in a February tweet that he had bought $ 1.5 billion worth of bitcoin and planned to accept it as a form of payment, the price of the cryptocurrency skyrocketed.

And when this Wednesday Musk himself said in a tweet that he will not accept bitcoins from those who want to buy his cars, its price plummeted to 15%.

If a single tweet can make its price rise or fall suddenly, it is surely a volatile asset that its detractors liken to a grand ponzi scheme and see a bubble on the verge of bursting.

But bitcoin has historically only scaled, according to its proponents, in four-year cycles. The last of these cycles peaked in December 2017, when it reached $ 19,600. A year later it bottomed out at $ 3,000.


www.bbc.com

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