The value of cryptocurrencies continues to grow. A single Bitcoin , the digital currency invented by Satoshi Nakamoto, is now equivalent to over $ 52,000. But its rival, Ether, has also seen a 160% increase since the start of 2021. Based on Ethereum technology, it hit a personal record of $ 1,918 according to CoinDesk.
Cryptocurrencies fly: what are Ether and Ethereum
The two cryptocurrencies continue to grow week after week. The best known is Bitcoin, but Ether is also born from blockchain technology: it has different uses despite many people seeing it as an alternative to Nakamoto’s creature, which in 12 years has reached a value of 52,000 dollars.
Ether is the digital currency that is used in the Ethereum network : it is used especially by developers to create apps and smart contracts . In essence, it is a decentralized software platform rather than a currency like Bitcoin. The other big difference is that Ethereum does not have a fixed maximum limit for ‘ mining ‘ (ie the extraction or production of cryptocurrencies). No government or company controls the emission of Ether.
Cryptocurrencies are flying: what is happening to Bitcoin and Ethereum
But what is it that allows cryptocurrencies to gain value and significantly increase growth rates? One of the most recent main reasons is BlackRock’s choice to approach the world of digital currencies. The asset management giant, through an interview given to Cnbc by the head of the group’s fixed income division, Rick Rieder, revealed its interest in Bitcoin.
Last January, BlackRock decided to focus on Bitcoin as potential investments of two of its funds: BlackRock Strategic Income Opportunities and BlackRock Global Allocation Fund. A move that triggered new buys on the asset.
But digital that glitters is not all gold: there are those who, like the analysts of JP Morgan, do not show enthusiasm for digital currency. What scares them is the extreme volatility , which characterizes the entire world of cryptocurrencies. According to experts, the risks of the investment portfolios of American companies would increase even if the exposure was limited: for them the values of Bitcoins appear unsustainable.
Bitcoin values have flown by 78% since the beginning of 2021, after having more than quadrupled their value in 2020.