The mystery of Bitcoin

We had a lot of questions and all of the above asked, are the most prominent ones. The mystery of bitcoin is not just one but many and hence, it is hard to mention one single entity as the reason behind its mysterious fall, rise and roller coaster it has been following.

hen it was created back in 2009, not a lot of people had their bets on the stocks even seeing a hundred holders but fast forward to 2021, bitcoin is currently trading at more than $49000. This is after it has hit a high of $50,000.

Let us look at some of the things that make this cryptocurrency more susceptible to volatility.

Anonymous creator:

The term bitcoin was first mentioned on a cryptocurrency mailing list. The domain name “bitcoin.org” was first registered in 2008 o 18th august. Later on 31st October in the same year, an author named Satoshi Nakamoto shared a link to a paper that was titled Bitcoin: A Peer-to-Peer Electronic Cash System” on a cryptography mailing list.

The author said that bitcoin software is open-source software, later releasing it in 2009.

The catch is, Still, in 2021 no one knows who Satoshi Nakamoto is. Is it a single person or a group of people? The market as flooded by a stock that technically had no creator and jumped out of the blue on the people.

A lot of people argued that it is the tech giant Elon Musk who had created bitcoin but later he himself falsified the claim.

The mere maintenance of the anonymity of the creator of the stock has created a frenzy in people. The fact that no one knows where it came from has given bitcoin a lot of thrust in gaining th market over the years.

Involvement of Silk road and the dark web:

Anyone who has been following bitcoin for a while will always have a reflex action and blurt two more words. Silk Road. This was not necessarily a dark market or the dark web as a whole but was a mere e-commerce website.

The only catch here was that the listings of the website held drugs and weapons of mass destruction. It connected potential buyers and sellers via Tor, which is again fully secured and ironically, created by the US navy for anyone who wants anonymity online.

The website asked for all of its payments in Bitcoin since fiat currency was easily traceable. The right use of Silk Road and Bitcoin together could have created wonders but soon, more and more drug dealing began happening over and ultimately the creator was arrested by the FBI.

Silk Road also offered an escrow service to its users. Since everyone o the website was anonymous and it was easy for the drug dealers to make a fool out of a buyer, the asked funds were collected by the website.

Then the customer was asked to submit a confirmation that they have received the desired item and only then, the vendor would receive the funds.

The involvement of Bitcoin with such a website and the illicit drug trade bought it in the wrong kind of limelight and in no time, it gained false popularity. This was way back in 21012 or ‘13.

Elon Musk:

The mere name of this man is enough to send the market in a plunge or see a record high. Elon Musk tweets something and the prices drop! This has really been observed recently when he jokingly tweeted about the high prices of BTC and ETH.

The price of the cryptocurrency saw a huge drop and musk himself lost more than 10 Billion dollars. The tech giant seems to be really interested in cryptocurrency as he has made it official that Tesla, Musk’s EV company will start taking payments in bitcoin and has also invested more than one billion in it.

The mere presence of Elon Musk around Bitcoin has increasingly created volatility in the stock. This is not the first time since it has happened.

Earlier this year, Elon Musk had joined hands with the legendary west-coast rapper Snoop Dogg to inflate the DogeCoin and he was also there when Redditors ensured that nothing happened to GameStock as it was about to be thrown off of the market.

The mysterious Psyche of the market that no one knows the working of, seems to be working well around Musk. This is also the reason behind the volatility of cryptocurrency.

A lot of multi-Billionaires have been saying ill things about the currency, with Bill Gates even stating that cryptocurrencies should be eradicated.

None of this saw a significant change in the price of the cryptocurrency, stating that it is Elon Musk, whose words are taken as a direction by the Cryptocurrency market.

The market Psyche:

With the unbroken dedication towards one single thought that bitcoin is a legitimate currency and will never fraud them, people seem to trust cryptocurrency. One thing behind this trust can also be the very famous ledger system the Blockchain.

This is a peer-2-peer transaction system. Simply put, the system allows anyone to see the changes that are happening in the system but does not give anyone the right or access to edit them.

The fact that the bitcoin network works as one single system is also one of the factors that put the belief back in the currency and the market. One single system is harder to attack as compared to a lot of them stored at one single place. This is the major advantage bitcoin has over a lot of cryptocurrencies.

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