Exactly a week ago, bitcoin was trading at CZK 856,940, but it has been starting to lose significantly since Monday. The most significant drop was in value on Thursday, when the exchange rate fell to 640,800 CZK. The most famous cryptocurrency in the world did not have such a low value this day, the last time such a low exchange rate was recorded last July.
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Already on Thursday evening, however, the exchange rate strengthened to CZK 707,590. The growth was also noticeable on Friday, when one virtual coin was traded for CZK 732,400 after noon.
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Development of bitcoin value
True, this is a significantly lower rate than a week ago. On the other hand, it also means that bitcoin managed to strengthen by more than CZK 91,000 in just 24 hours. Such strong growth was probably caused by investors who went shopping after Thursday’s “sales”.
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It is to the interest of investors – or to their confidence – that bitcoin and other cryptocurrencies usually react directly. Due to the limited amount of bitcoins, the rate increases with the increased demand.
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Growth is also evident in other cryptocurrencies. Ethereum, for example, traded for CZK 63,950 a week ago, the value dropped to CZK 45,130 on Thursday, and the second most famous cryptocurrency traded for CZK 50,380 on Friday afternoon.
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Virtual currencies do not have a uniform price; they are traded on stock exchanges and exchange offices depending on volatility (an estimate of the rate of value fluctuations over time). Differences in prices can vary in the order of several thousand crowns.
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Bitcoins and other virtual currencies
There are many virtual currencies. One of the oldest and currently most popular are the so-called bitcoins. They were established in 2009, but have enjoyed greater popularity in recent years. This currency was designed so that it could not be influenced by any government or central bank.
Cyber coins are “minting” a network of computers with specialized software programmed to release new coins at a steady but declining pace. The number of coins in circulation is expected to reach 21 million in the end, which is to be around 2140.
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