Since the introduction of Bitcoin in 2009, cryptocurrencies have become extremely popular. Satoshi Nakamoto, the pseudonym of the inventor of
Bitcoin, the first and still most important cryptocurrency, never intended to create a currency. In his announcement of Bitcoin in late 2008, Satoshi stated he developed “A Peer-to-Peer Electronic Cash System.” His objective was to invent something many people failed to create before digital cash. Satoshi tried to develop a digital cash system without a central entity. This decision lead to the birth of Cryptocurrency.
Well, let’s take away all the noise around cryptocurrencies and reduce it to a simple definition. In simple words, they are just limited entries in a database no one can change without fulfilling specific conditions. This may seem ordinary, but believe it or not, this is exactly how a currency is defined. A Cryptocurrency like Bitcoin consists of a network of peers where every peer has a record of the complete history of all transactions and therefore of the balance of every account.
Once the transaction is done, it is no longer forgeable, it can’t be reversed. It is part of an immutable track record of historical transactions of the so-called Blockchain.
Many other attempts to create a digital cash system didn’t attract an adequate number of users, but Bitcoin had something that provoked enthusiasm and fascination. Bitcoin benefits as a digital gold standard in the whole cryptocurrency industry. It is used as a global means of payment and is the de-facto currency of cyber-crime like ransomware. Bitcoin’s incredible security is almost unbelievably mind-boggling.
Bitcoin has been one of the best investments for Crypto enthusiasts and people are still using it to make a lot of money, in many different ways.
Every single Bitcoin transaction takes place on Bitcoin Blockchain. Blockchain technology protects Bitcoin and its users from hackers.
WHY DOES BITCOIN’S PRICE FLUCTUATE?
Just like most currencies, the price of Bitcoin changes every day but the only difference is that the price of Bitcoin changes on a much greater scale than local currencies. Bitcoin’s value is based on how valuable the people investing in the market think it is.
The price of Bitcoin usually changes because of the news that is published about it. Here’s how it goes,
- When there is bad news about Bitcoin, the number of people selling it increases more than the number of people buying it. These people sell their Bitcoin for lower prices than the current value so that they can sell it quickly. This causes the price to drop.
- When there is good news about Bitcoin, the number of people buying it increases more than the number of people selling it. The more people buy it, the more its price rises.
The price of Bitcoin is up one day, down the next day. It has a history of being difficult to predict in the short term. With prices that go up and down regularly, investors can often buy Bitcoin at a low price and then sell it at a much higher price. There are many investors who buy Bitcoin to hold it for the long term. Many investors bought Bitcoin over 5 years ago for very low prices (under $100) and then held it until it reached $10,000-20,000. This is how a lot of people got rich!
THE 2017 BITCOIN RUSH
Bitcoin reached its highest value in 2017 when it hit $19,498.63. That made Bitcoin one of the most talked about things in the media.
Bitcoin price and Bitcoin price predictions were two of the biggest trends, everyone was talking about. The way it went up was crazy. The media attention and hype made more and more people buy Bitcoin and so the price increased.
However, soon after Bitcoin reached its all-time high, Bitcoin crashed.
We all wonder where Bitcoin is going to be in the next 1 year, 2 years, 5 years, or even 10 years from now. It’s tough to predict!
WILL BITCOIN CRASH AGAIN?
The bad news about Bitcoin depends upon the countries that create regulations/laws for cryptocurrency. Countries such as South Korea, Japan, China, France and the United States all want to create new regulations. This indicates we may see Bitcoin crashing again.
Even though they want to make new regulations, we must remember that,
- This could take a long time
- It might not affect the price of Bitcoin
Until then, the most popular Bitcoin estimation is that it will continue to rise.
WILL OTHER CURRENCIES OVERTAKE BITCOIN?
It is not to say that investing in other Cryptocurrencies is bad. Each investor needs to calculate their own risks and rewards to decide whether Altcoin is a good fit for their goals or not. But it is clear that no other currency is a good hedge against Bitcoin. It is possible for other Cryptocurrencies to take over Bitcoin but it would have to show far more utility first and be able to grow itself to be competitive with Bitcoin’s network before the Bitcoin ecosystem has a chance to add the same feature.
Bitcoin owners can expect that its usefulness will only grow over time.
CONCLUSION
I believe bitcoin will now move higher over the next few weeks and months, making steady gains for investors. If done correctly, buying and selling Bitcoin can mean big profits. It’s made a lot of money for people in the past and still is today.
Bitcoin is still largely perceived as a speculative tool and is yet to find its competition in the real world.
Join the conversation! Your thoughts help the community grow.