Why the Bitcoin price is rising

The oldest and best-known digital currency is once again on a rally course. At the weekend, a Bitcoin cost more than $ 10,000 for the first time since October of the previous year. This increases the market capitalization to more than $ 180 billion. In mid-December, a bitcoin still cost $ 6,500 with a market cap of around $ 120 billion.

In the slipstream of Bitcoin, other digital currencies also grew. The second largest digital currency, Ethereum, was just under $ 230 last summer and was worth around $ 25 billion, up 50 percent this year. The third largest digital currency, Ripple, cost me around 28 cents the last time in November and was valued at $ 12 billion. All digital currencies together have a market capitalization of $ 283 billion. Above all, this shows that the dominance of Bitcoin has increased significantly again. Bitcoin’s share of the market capitalization at the beginning of 2018 was 33 percent, today it is almost two thirds.

The recent price jump is explained by the so-called “halving”. “Halving”, which means halving in German, refers to the reward for creating Bitcoin. The “miners”, who promote Bitcoin, so to speak, use their computers to check the blocks in which the Bitcoin transactions are stored. Such a transaction currently takes around 10 minutes. For comparison: At Ethereum, for example, it is currently only 13 seconds. This shows the weakness of the Bitcoin network.