I am not a credit or debit card expert.
But as an amateur economist, I have learned a lot from the world of cryptocurrencies and its recent price spikes.
The most prominent example is Bitcoin.
The cryptocurrency is a peer-to-peer digital currency that has become a $10 billion market.
The value of Bitcoin has skyrocketed since the start of the year, as investors and governments around the world have poured resources into building the network.
And Bitcoin is far from dead.
As a result, its price has been soaring in recent weeks.
It reached a high of $11,000 in the last few days.
Now, it’s trading at about $8,500, which is about $400 more than the $7,500 it hit in the same timeframe a year ago.
What has caused this surge?
It’s not that people are using Bitcoin to buy drugs or other illicit goods.
The main reason for the price spike is a technical glitch that lets people buy Bitcoin without a credit and debit card.
The glitch was first discovered by a researcher called Bitcoin expert Johnathan Denton, who went by the name “Billionaire.”
He explained in a video on Reddit that he discovered the glitch on a computer that had a software vulnerability that allowed people to use a credit/debit card without a password.
He told CoinDesk that the glitch was so severe that he had to change the software of the computer to prevent the glitch from happening again.
It wasn’t until the software was patched that the price jumped by a large amount.
As Bitcoin has risen in value, so has its volatility.
Denton said in a blog post that the spike in price could be tied to speculation on the potential of Bitcoin to become a mainstream currency.
Deregulation and the Federal Reserve’s efforts to curb inflation have contributed to the rise in volatility, too.
The Federal Reserve, for example, has recently increased its short-term interest rate, which can drive up the price of Bitcoins.
Bitcoin has been trading above $10,000 for weeks.
But its price dropped after it hit $8 ,500 in the past few days, which means its price could rise again.
What do you think about the Bitcoin price spikes?
Are you worried about Bitcoin becoming mainstream currency?
Let us know in the comments below.
Images via Reddit / r/all and Reddit