Economics of bitcoin

Bitcoin rallied from a three-month low on Monday in a volatile session that saw investors initially selling and then buying cryptocurrencies in the wake of Tesla boss Elon Musk's tweets about the carmaker's bitcoin holdings.

The price of bitcoin has nosedived after Tesla CEO Elon Musk said his company was suspending plans to accept the cryptocurrency as payment for electric vehicles.

While most people only consider Bitcoin as a means to gain a profit, the popular cryptocurrency has much more to offer than just that. One area that Bitcoin has been expanding to lately is the entertainment sphere. From fan-favorite video games to blockbuster movies, there are plenty of ways users can gain access to these mediums by using Bitcoin.

Tesla has made roughly $1 billion in paper profits from its investment into bitcoin

Almost everybody with internet access knows about Bitcoin. And, there's never a shortage of opportunities to invest in Bitcoin. Even mainstream media always has a story that somehow relates to Bitcoin. Essentially, this cryptocurrency is ever-present in the lives of most people. Since its emergence, Bitcoin has never ceased to fascinate investors and people in general.

The global economy is without a doubt moving towards the digital eco-system. Everything, from money transfer to investment, is becoming paperless. Bitcoin is among the most promising and the most recent additions to the digital eco-system.

There's no end in sight when it comes to the number of video games coming out. New ones just keep coming in. That's because game developers make sure to produce plenty of titles to cater to the different interests of millions of players. So, far they haven't disappointed their audience.

Bitcoin hit yet another record high on Friday, and moved within sight of market capitalisation of $1 trillion a, blithely shrugging off analyst warnings that it is an "economic side show" and a poor hedge against a fall in stock prices.

Bitcoin was fast approaching the $50,000 mark on Tuesday as the afterglow of Elon Musk-led Tesla's investment in the cryptocurrency had investors reckoning it may become a mainstream asset class for both corporations and money managers.

Fiat currency refers to non-digital money. A centralized power controls fiat money. Several economic elements, as well as supply and demand, determine the value of fiat money. And these are the main differences between fiat currency and a cryptocurrency like Bitcoin. Examples of fiat currencies include Dollars, Pounds, and Yen.