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The price of bitcoin has risen by almost 10 per cent in the last 24 hours , marking a significant change in fortunes for the world's most valuable cryptocurrency.
Litecoin, ethereum and ripple were among other cryptocurrencies to see major gains, following months of market-wide stagnation .
The sudden market turn-around has led to speculation about what may have caused such gains, with some analysts pointing to bitcoin's inflated hash rate.
Hash rate measures the amount of power that the bitcoin network is consuming in order to process transactions and generate new units of the cryptocurrency. On Friday, 8 February, bitcoin's hash rate hit its highest level since November 2018, meaning more miners are joining the network.
The latest gains have seen bitcoin rise by more than $300 to $3,663 at the time of writing, though this still represents a fraction of the $20,000 highs reached in December 2017.
Bitcoin's volatile history in picturesShow all 10 1 /10Bitcoin's volatile history in pictures Bitcoin's volatile history in pictures Satoshi Nakamoto creates the first bitcoin block in 2009 On 3 January, 2009, the genesis block of bitcoin appeared. It came less than a year after the pseudonymous creator Satoshi Nakamoto detailed the cryptocurrency in a paper titled 'Bitcoin: A peer-to-Peer Electronic Cash System'
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Bitcoin's volatile history in pictures Bitcoin is used as a currency for the first time On 22 May, 2010, the first ever real-world bitcoin transaction took place. Lazlo Hanyecz bought two pizzas for 10,000 bitcoins – the equivalent of $90 million at today's prices
Lazlo Hanyecz
Bitcoin's volatile history in pictures Silk Road opens for business Bitcoin soon gained notoriety for its use on the dark web. The Silk Road marketplace, established in 2011, was the first of hundreds of sites to offer illegal drugs and services in exchange for bitcoin
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Bitcoin's volatile history in pictures The first bitcoin ATM appears On 29 October, 2013, the first ever bitcoin ATM was installed in a coffee shop in Vancouver, Canada. The machine allowed people to exchange bitcoins for cash
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Bitcoin's volatile history in pictures The fall of MtGox The world's biggest bitcoin exchange, MtGox, filed for bankruptcy in February 2014 after losing almost 750,000 of its customers bitcoins. At the time, this was around 7 per cent of all bitcoins and the market inevitably crashed
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Bitcoin's volatile history in pictures Would the real Satoshi Nakamoto please stand up In 2015, Australian police raided the home of Craig Wright after the entrepreneur claimed he was Satoshi Nakamoto. He later rescinded the claim
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Bitcoin's volatile history in pictures Bitcoin's big split On 1 August, 2017, an unresolvable dispute within the bitcoin community saw the network split. The fork of bitcoin's underlying blockchain technology spawned a new cryptocurrency: Bitcoin cash
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Bitcoin's volatile history in pictures Bitcoin's price sky rockets Towards the end of 2017, the price of bitcoin surged to almost $20,000. This represented a 1,300 per cent increase from its price at the start of the year
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Bitcoin's volatile history in pictures What goes up... Bitcoin price crashes spectacularly, losing half of its value in a matter of days
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Bitcoin's volatile history in pictures Bitcoin plunges The cryptocurrency eventually bottoms out below $4,000 in 2019 before slowly rebuilding momentum to outperform more traditional assets
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It is unclear whether the price surge is sustainable, though bitcoin's increased trading volume could be a signifier of more market movement still to come.
Inflation-stricken Venezuela has helped push up bitcoin trading volumes, posting its highest volume to date this week.
The South American country recently pegged its national currency to the government-launched petro cryptocurrency in an effort to prevent economic collapse.
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