Bitcoin: Reasons for Being Expensive

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For the first time last year, bitcoins and other cryptocurrencies caught the globe by storm and changed the way we do business. Trading in the financial world can be intimidating for a newbie, especially when analyzing price charts and comprehending trading terminologies. Cryptocurrency price movement is examined today so that you can get a notion of how to go about investing. Cryptocurrency trading platform CoinSwitch. Kuber recently revealed that it had raised $15 million (Rs 109 crore) in Series A funding from major global fintech investors. You can check out the Bitcoin Freedom anytime for more information on Bitcoin.

Discovery Phase of Bitcoin

No exchanges were trading Bitcoin in 2009. 2010 was the first year that a price was recorded. Bitcoin was valued at zero dollars in 2009, its first year of existence. Prices never reached $1 in 2010, and the highest price was $0.39. The lowest price in 2010 was $0.005.

Acceptance Phase of Bitcoin

In the first ‘bubble,’ Bitcoin reached a high of $31 before the first dramatic price decline. By December 2011, its value had plummeted to $2, a loss of more than 95 percent. Many ideas about how bitcoin may be improved were floating around at this time, but not all of them could be put into action. Altcoins were born when some members of the community established their projects. Altcoins are primarily forked versions of bitcoin with minor alterations. Ripple, litecoin, primecoin, and namecoin are examples of new cryptocurrencies that come into existence.

During this time, the value of bitcoin rose steadily from $2 in December 2011 to $1,242 in November 2013 and then plummeted to $750 in November 2016 before increasing again to $1,050 in November 2017. This surge was accompanied by considerable volatility at numerous levels of support, though. The bitcoin price rose from $150–$200 in October 2013 to $1,242 in November 2013. In just two months, the price plummeted from $1,000 to $600, bounced back to $1,000, and then plummeted again to $500.

Institutional Adoption

As a safe-haven asset against market instability and inflation, cryptocurrencies, notably Bitcoin, are increasingly viewed by many. As a result of the current societal and economic context, many people hold less cash and hedge against market volatility. The concept of public firms investing their cash reserves in cryptocurrencies has recently gained momentum. American payment processor Square has purchased $50 million worth of Bitcoins. An American publicly listed corporation transferred $425 million of its cash reserves into bitcoins, believing it to be a more reliable way to keep wealth.

The Rise of Bitcoin

2017 was a record year in a price change, even for the casual watcher of the digital currency market. Aside from bitcoin, other cryptocurrencies also made a splash in 2017. Ethereum’s market value increased 64-fold, from $700 million to $45 billion, making it the best performing cryptocurrency in the market year-to-date, according to a new report. As of December 31, ethereum was trading at $450, up from $8 in January. This is the unheard-of return of 36000 percent for Ripple, which began at $0.0063 and completed the year at over $1. Unprecedented gains in 2017 caused the world to sit up and take notice. Cryptocurrencies were recognized as an asset class that could not be ignored.

Cryptocurrencies & Paypal

Paypal, a multinational digital payments corporation, said in October 2020 that it would be adding cryptocurrency buying and selling facilities to its website. Pay Pal is said to have a user base of 350 million people who will now have the option to use crypto as a payment method.

YouTube and PayPal were among many who criticized crypto money as a viable and long-term currency. One of the most prominent personalities has jumped aboard. Demand for this asset class has increased along with PayPal’s backing, adding to its price increase. Another 40 million users will be able to make crypto payments through Venmo, owned by the same business. They’re still learning, while other services are already making crypto payments more accessible. The cryptocurrency market is being regulated by various governments, aiming to attract private investors to the industry.

Sustenance Phase of Bitcoin

Cryptocurrencies and their usage have been questioned by many in the past few years. Bitcoin and other cryptocurrencies were launched to transact digitally but have now become an asset class. For a variety of reasons, bitcoins will continue to be highly volatile. As blockchain technology and cryptocurrencies enable it to gain popularity, market players will need to see real-world use cases. Bitcoin and other cryptocurrencies may face off in a tough fight to gain dominance in 2018.

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