Countries are divided on cryptocurrency, with some looking to ban it, while others are seeking ways to incorporate it into their economic systems.
Bitcoin appears poised to climb higher despite a recent downturn and sluggish trading in a narrow range. Its funding rates have remained low, and suggest the market is set to advance.
Bitcoin's lofty valuation and manic price swings receive intense news coverage, but Ethereum may provide the foundation to build an alternative worldwide financial system.
"The introduction of micro Bitcoin futures responds directly to demand for smaller-sized contracts from a broad array of clients and will offer even more choice and precision in how participants can trade regulated Bitcoin futures in a transparent and efficient manner, " CME Group said.
The Louisiana resolution, lauds Bitcoin "for its success in becoming the first decentralized trillion dollar asset," and notes that it "could potentially replace gold as a monetary reserve."
Tesla's CEO plugged his appearance next week on Saturday Night Live by tweeting, "The Dogefather SNL May 8." And Dogecoin's price jumped 20% to $0.32.
"The more hashpower a miner has, the higher probability of winning the guessing game. This is why organizations set up massive mining facilities with hundreds of specialized mining machines, where expensive machines have more hashpower."
Although some countries, including India, are considering banning Bitcoin, an outright ban in the United States is unlikely. Wall Street has embraced Bitcoin as an asset class, and derivatives are traded on the Chicago Mercantile Exchange.
A recent survey of 1,015 of investors in cryptocurrency found that 54.3% believe Bitcoin will climb to $100,000 this year. The survey offered no analysis of the cryptocurrency's fundamentals or outside forces affecting its price.
News that President Joe Biden will propose a significant increase in the capital gains tax sent Bitcoin's price below $50,000 for the first time since early March.
" An entire generation of investors is speculating on their own meme currency, which is essentially a parody of money," Seeking Alpha said in a report. "Behind Dogecoin is a rebelliously nihilistic and perhaps dangerous idea that meme money is no more real than actual currency."
"Given the massive move we've had in Bitcoin in the short run, things are very frothy, and I think we're going to have a major correction in Bitcoin," Scott Minered, firm's global chief investment officer at Guggenheim Partners in New York, told CNBC.
Cryptocurrency continues to gain wider acceptance in the marketplace despite Bitcoin's manic swings and Dogecoin's guffaws.
Noriyuki Matsuda's idea for a pocket-sized "magical device" that would provide instantaneous translation exceeded the capacity of technology available in 1989. "Pocketalk now supports 82 languages," CEO Noriyuki Matsuda said. "For many, this is a magical device."
"A power outage in the Xinjiang region of China where a significant portion of Bitcoin mining takes place caused a very sudden dip in the global hashrate which, in turn, caused transactions to back up and fees to rocket temporarily," an analyst told Newsweek.
A survey of 1,000 Americans by MagnifyMoney, a division of Charlotte, North Carolina-based LendingTree, found that 62% of crypto investors believe they'll get rich.
Bitcoin, backed by investments from major institutions, outpaced the growth of major companies and achieved a $1 trillion market valuation in just 12 years.
Bitcoin surged to a new high Tuesday as investors bet on its growing strength as a long-term investment and increasing acceptance in commerce.
The cryptocurrency trading platform is scheduled to go public Wednesday via a direct listing on Nasdaq. Coinbase is a "unicorn"—a privately held company valued at $1 billion or more—and profits make it golden. It could be an 'Amazon moment' for investors.
China's new digital currency looks like its paper money. A mobile phone app developed for the People's Bank of China allows users to spend it like cash. The central bank digital currency (CBDC) could be used for international trade, and likely won't be linked to the global financial system.
"The spikes in Bitcoin outflows from exchanges typically coincides with upside price action in the following days, as investors continue to accumulate during the dips of this bullish market cycle," said Lennard Neo, a certified financial analyst and head of research at Stack Funds in Singapore.
"I think there will be a big evolution," Goldman Sachs CEO David Solomon said. "As to how this evolves in the coming years, we operate in the rules we have."
The Crypto Council for Innovation (CCI) said it plans to undertake research projects and lobby lawmakers to promote what it sees as the "transformational technology's promise" and to correct perceived misperceptions.
"These tentative signs of Bitcoin volatility normalization are encouraging," JPMorgan said in report released last week. "In our opinion, a potential normalization of Bitcoin volatility from here would likely help to reinvigorate the institutional interest going forward."
It costs about $973 to mine an ounce of gold and $4,161 to mine one Bitcoin by computer, industry figures show.
"As #BTC (Bitcoin) is flirting with new highs, options are starting to react with call demand," Genesis Volatility, a Chicago-based cryptocurrency analytics website, tweeted.
Bitcoin's code base can be copied, but the credibility, and immutability of its hard money policies cannot," analysts say. "Bitcoin is long past the point of being catchable."
Massive government spending in response to the COVID-19 pandemic and the Federal Reserve's optimistic view of an economic rebound could lead to "entrenched inflation," a financial advisor said.
"Bitcoin transactions and tradability are still limited," Dr. Marion Laboure, an analyst at Deutsche Bank London said. "And the real debate is whether rising valuations alone can be reason enough for Bitcoin to evolve into an asset class, or whether its illiquidity is an obstacle."