Cryptocurrency has been one of the hottest topics since last year. It’s astonishing to see the volatility of Bitcoin Price USD. Lost of people are jumping in the bandwagon. How about you? Are you looking to get into cryptocurrency as well?
I decided to do some of my own research. My interest on the topic has definitely been piqued and likely yours too which is why you’re here. So read on and I hope I shed some light on this hot topic.
What is Bitcoin
Let’s first look at what is Bitcoin really? And why should we bother getting in the buying trend of this cryptocurrency.
In simple terms, Bitcoin is a digital currency. So in essence it’s just like the US dollar or Japanese Yen or Mexican Peso. But it is very different wherein all other currencies are tied to a particular country. Bitcoin, however, is not.
Bitcoin is the first decentralized digital currency. What does that mean?
- it means there are no middle man
- there is no central bank
- no single administrator
- nothing is also regulating it
- and as I already said not tied to a single country
Bitcoin first debuted in January of 2009. It was created by an anonymous person or perhaps group of people under the pseudonym “Satoshi Nakamoto”.
What is its use
As it is a currency it can be used to purchase different things. More and more merchants are beginning to accept Bitcoin as a form of payment.
Below are some companies that are now accepting Bitcoin as a form of payment:
- Virgin Galactic
- KFC Canada
- Whole Foods
For a more extensive list check out this site by 99bitcoins.com.
If we look at cryptocurrencies, below are some benefits that most see as advantageous.
Transactions with Bitcoin can be done in a matter of seconds. You can buy and sell Bitcoins really fast. Buyers and sellers can make transactions using their mobile phones. Within seconds the transaction will be completed and successful.
Bitcoins are easy to use and easy to manage. Since there are no regulatory body, users transact with each other. You buy and sell with directly another user.
It is easy to manage as you may store them into a digital wallet.
All cryptocurrency transactions are stored publicly and permanently on the network. However, the identity of buyer and seller remains unknown unless of course revealed.
This is one that attracts the most especially with those trying to hide their identity. Realize this can also be used with purchase of illegal products, such as drugs or weapons.
What is driving the Bitcoin Price USD
Now you may ask what is all the fuss about Bitcoin and cryptocurrency? Why is its price climbing the way it is? And should we be getting into this trend as well?
At the start of 2017, Bitcoin’s price was only in the $1,000 mark. By mid-year it has already doubled at $2,000. Then at the second half of the year was when we saw it went really crazy.
Bitcoin climbed as high as nearly $20,000 in December but ultimately ended the 2017 year at around the $13,000 area. That is around $7,000 move downhill and all of that happened in a single month in December.
What happened in the second half of 2017
It is attributed that the rapid rise is due to the demand for Bitcoin especially in Asia has dramatically increased. In April of 2017, Japanese government has recognized the legitimacy of Bitcoin currency. It was then followed through by increase in demand also in South Korea.
It was then uphill from there. Mainstream media caught the news and from there the main driver took on the form of speculation.
Lots of analysts who are naysayers say that Bitcoin will eventually crash. Personally, I think this fueled the rise even more as sort of trying to disprove the naysayers.
Nevertheless, more people were lured with its volatility and the prospect of getting rich quickly due to it’s surging demand and rise.
What does the future hold
What’s next for Bitcoin and the cryptocurrency market? This is truly a valid question. Is cryptocurrency truly here to stay?
I bet a lot of people truly want to know as this will determine whether more will get into the bandwagon.
Well for one cryptocurrency is becoming more and more popular. If we go back to our list above of companies starting to accept this is growing.
It is very likely that it might truly be here to stay.
My personal opinion
In my opinion, the simplest answer is, no one knows. I for one will likely remain a spectator for the time being. When I decide to jump in, I will only do so with extreme caution. Also with the mentality that I’ll only use money that I am willing to lose.
Volatility of the Bitcoin Price USD is truly extreme and its price action is astonishing. I’m very interested to see what does the future hold.
What are your feedback & thoughts, feel free to comment them below.
Thanks for reading. I hope this has shed some light into the cryptocurrency world.
Have a wonderful day and cheers!