<br> Miners build and maintain a gigantic public ledger containing a record of every bitcoin transaction in history. Bitcoin has had a very volatile trading history since its inception in 2009. Initially, it traded for almost nothing (around USD 0.0008). In July 2010, bitcoin had its first real price increase, a single coin for USD 0.08. With two years in the financial market, on February 9th 2011, bitcoin achieved parity with the American dollar, causing interest in investors in some markets. A legion of Twitter bots pumped the price of crypto tokens traded by Sam Bankman-Fried’s quant trading firm Alameda Research shortly after FTX listed the tokens, according to a report from the Network Contagion Research Institute. Furthermore, the specific exchange rates are formed in the process of bitcoin trading on various online exchanges. The specific objectives aim to: (1) investigate previous academic works developed in this field, (2) analyze the evolution of bitcoin and examine important events that determine its volatility, (3) explore the cryptocurrency market in Ecuador, and (4) test if bitcoin has a linear correlation with other cryptocurrencies, stock exchange indexes and commodities, employing visual and statistical analysis.<br>
<br> Then, with the purpose of understanding bitcoin dynamic, a summary of its evolution and the principal events that have caused its volatility is done. Finally, based on these qualitative and quantitative results, the principal conclusions and recommendations are established. This process controls how many of the cryptocurrencies from the global market are represented on our site. In this context, the general objective of this article is to understand the importance and the influence of bitcoin in visit the following website page global world and its relationship with other market indexes. This article follows a mixed methodology. The first part describes the methodology of this study. Part of the reason the price of Bitcoin surged during the COVID-19 pandemic can be linked to the halving that happened in May 2020. Bitcoin halving is when the reward for mining Bitcoin is halved. You can withdraw your funds anytime. Traders and investors still remember what happened to their money when Mt. Gox misappropriated the funds. Most of the markets opened sharply lower and investors rushed into known havens such as gold. Her findings of hedging capacity and medium of exchange, demonstrated similarities between gold and dollar, while bitcoin is preferred by risk-averse investors for adequate risk management in portfolios and financial markets.<br>
<br> The interdependencies of prices between bitcoin and altcoin markets in the short and long term were analyzed by Ciaian et al. Then, an empirical study is done, divided into three parts: (1) the bitcoin´s close price is evaluated to denote its volatility during the analyzed period, (2) the Ecuadorian experience with cryptocurrencies and bitcoin is schematized to corroborate the actual situation of virtual currencies in this country and (3) the evolution of bitcoin and the most important markets (global cryptocurrencies, stock exchange indexes, and commodities) is done to investigate their trend. In 2016, bitcoin showed a slow but steady upward trend, its price exceeded USD 500 during the first semester. Their results also showed a bitcoin impact in the short-term for some altcoins that are similar to the bitcoin price formation. In addition, Kubát (2015) showed in his investigation that the bitcoin’s volatility is significantly higher than other currencies and assets. Dibrova (2016) confirmed this statement, her investigation on bitcoin’s price dynamics evidenced that virtual currency market has a vast potential for developmen<br>p><br>p> The price of Bitcoin increased by thousands of dollars in one week. FBI agents have seized millions of dollars in bitcoin from criminals down the years. On January 3rd 2017, the bitcoin price broke USD 1,000 for the first time in three years. As Reuters reported in January, Binance kept weak money-laundering checks on its users until mid-2021, despite concerns raised by senior company figures starting at least three years earlier. Critics raise concerns about the sustainability of this energy consumption and its potential environmental impact. The concerns of the legislative authorities on money laundering and illegal financing activities were studied by Dibrova (2016). The same awareness was shared by Blau (2018). In his work, he explained the use of bitcoin as an exchange medium and the possibility of using it to finance criminal activities due to its speculative nature. Furthermore, bitcoin does not have a deposit insurance and it could not access the banking system that increases hacking activities. Gimigliano (2016), provided an analysis of the European Union’s jurisdiction for bitcoin and e-payments, the user funds protection, the stability of payment system and the competitiveness of EU market. The evaluation of this new monetary and electronic system that arises independently without any government control was analyzed by Durgun and Timur (2015). They discovered cryptocurrencies offer the same monetary services as traditional money and have been able to find users in the mark<br>/p>