BABY Bitcoin has recently soared in value – and is currently up by more than 800% over the past 24 hours.
We explain what you need to know about the cryptocurrency, and why the price is suddenly rocketing.
Before we do, keep in mind that investing is never a guaranteed way to make money so you can actually lose all the cash you put in.
That’s why it’s important not to invest more than you can afford to lose, or into anything you don’t understand.
Cryptocurrencies are especially volatile, so their values can make large swings with no notice.
There’s also scant regulation for crypto firms, so you won’t have protection if and when things go wrong.
What is Baby Bitcoin?
Baby Bitcoin (BBTC) is a cryptocurrency token, which launched last year.
According to its website, it aims to become “the most important and profitable meme token” by providing benefits for the project holders.
This is provided through a transaction tax system, which charges 5% on each token sale.
Of that, 3% goes to liquidity and the remaining 2% is distributed to investors.
The project claims its purpose is to alleviate child poverty with the help of different global organizations, although the details are scarce.
What is cryptocurrency?
CRYPTOCURRENCIES are a form of payment that can be exchanged for goods and services.
Keegan Francis, crypto editor and expert of comparison site Finder, told The Sun there are “two things that are red flags” when looking at Baby Bitcoin.
He said: “The first is the ticker ‘BBTC’. It is awfully close to BTCB, which is the ticker for a pegged Bitcoin token on Binance Smart Chain.
“If investors aren’t careful, they could accidentally buy Baby Bitcoin, when they’re expecting to receive Bitcoin (BTCB).”
The second red flag is the number of units of currency that exists – one quadrillion.
Mr Francis said this is similar to other coins like Shiba Inu or Safemoon that have created a large number of units to take advantage of people with a “unit bias”.
This is an investor’s perception that they can have “more of something” because the units cost less, he added.
Why is the Baby Bitcoin price going up?
The value of Baby Bitcoin is currently sitting at $0.00000002, according to Coinbase.
Its value has soared by 826% over the past 24 hours, 1,762% over the past month, and up by 73.38% since launch in July last year.
This is likely an effect of the increasing price of Bitcoin, which has climbed by 1% to $64,980 in the past 24 hours and hit a new all-time high earlier this week.
Furthermore, Bitcoin has jumped 51% in the past month.
The big gains this week can be attributed to a Bitcoin futures exchange-traded funds making their highly anticipated debut.
Now, instead of buying Bitcoin directly, you can invest in futures contracts.
Ahead of the ETF launch, Gary Gensler, chair of the US Securities and Exchange Commission, started a rally by repeating his support for Bitcoin.
Mr Francis added: “It looks to me like [Baby Bitcoin] is trying to piggyback on the success of Bitcoin, by convincing investors that they’re too late to buy Bitcoin.
“Nothing could be further from the truth.”
Baby Bitcoin 2021 price predictions
How the price of Baby Bitcoin will change in the future is impossible to know for certain, but plenty of fans and experts have made predictions.
Just be aware that they’re nowhere near guaranteed, and could actually drop by as much as it’s risen recently.
Meanwhile, it could increase to $0.0000000864, the site estimates.
In comparison, Wallet Investor has set a one-year forecast of $0.000001.
We’ve also revealed price predictions for other cryptocurrencies including Bitcoin, Dogecoin, Shiba Inu, dYdX, and EOS.
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