Remember Bitcoin? The cryptocurrency craze that instantly made thousands of computer geeks rich – and then dashed their fortunes away just as fast – is back on the agenda.

In 2020 Bitcoin's price has risen by 54 per cent, sparking rumours that it may be on the verge of another investor bubble.

In Mid-December of last year Bitcoin's price was languishing at $USD 6,584.03. Today, a single Bitcoin will set you back $USD 10,132.71.

The resurgence of cryptocurrency comes on the heels of legitimacy by the US Government.

Federal Chairman Jerome Powell, who is essentially the governor of America's central bank, overnight in a speech to congress said the Federal Reserve was investigating developing its own digital dollar.

While Mr Powell made no mention to Bitcoin itself, the mere whisper of federally-sanctioned cryptocurrencies is enough to inspire investors back to the blockchain.

In July last year, Mr Powell said most people purchasing Bitcoin were doing so as a way of storing wealth.

"Bitcoin is a good example. Really almost no one uses bitcoin for payments — they use it as an alternative to gold," Mr Powell told congress.

"It's a store of value, a speculative store of value, like gold."


  • Bitcoin is a form of online crypto-currency that allows money to be transferred electronically. It's decentralised, which means no bank regulates or controls it. The price is based purely off market demand.
  • It was created by a group (or a single person) of programmers under the pseudonym "Satoshi Nakamoto" in 2009.
  • Bitcoins are "mined" by computers that solve incredibly complex mathematical equations. Like coal or oil, there is a limited number of Bitcoins available to be mined, estimated to be in the ballpark of 21 million.
  • You cannot mine Bitcoin on your home computer, it requires specialised programs and hardware that have increased the difficulty of mining a Bitcoin.
  • Bitcoin's reputation took a hit after it was revealed the online currency became the preferred way of paying ransoms for kidnappers and purchasing illegal drugs online.


Source: 9News