- Price $6,646.84
- Market Cap
Over the past 6 months, bitcoin has exploded, and people all over the globe are looking for ways to invest in this relatively new form of currency. Bitcoin was the very first of what are now known as cryptocurrencies. These are a form of digital currency that used encryptions in order to make sure that transactions are secure and code to control the creation of new units. The purpose behind Bitcoin was to allow one person to directly send money to another, a transaction known as peer-to-peer.
One of the features that makes the bitcoin quite so popular is that it is a form of currency that is not controlled by any form of government or third party, meaning that people are able to make transactions while still staying anonymous. Unlike other forms of currency, 21 million Bitcoins are all that will ever exist. Only around 16.7 million of which are available right now, and the rest are slowly being created by the users of Bitcoin.
Even though it was designed as an electronic form of cash, its lack of government control and unstable prices have hesitated in accepting it as money, also more and more are accepting it every day.
The creation of Bitcoin
2008 was the year that Bitcoin really came to life. Firstly, the domain of Bitcoin.org was registered anonymously, and then later that year, the coins mysterious creator, Satoshi Nakamoto, released a whitepaper that revealed the whole idea of bitcoin, and its potential future in the world.
The very first Bitcoins were mined in January of 2009, and unlike today, the mining process did not require a huge amount of power, and there was relatively little competition to speak of. In fact, so little power was needed that it could effectively be mined using a normal CPU. Over time, people found more powerful methods of mining, which meant that smaller miners didn’t really have a chance.
The first Bitcoin transaction
It was in this same month that the first Bitcoin transaction took place between Satoshi and Hal Finney.
Despite the fact a transaction had already taken place, the first real world transaction did not occur until 2010, where a programmer from Florida traded 10,000 BTC for two Papa John’s pizzas to someone in the UK. This was a truly historical moment for Bitcoin. In this year however, its price never even topped $1, with its highest recorded price being just $0.39! At this time, bitcoin had not really captured much attention, and many people believed that it was never likely to take off. The problem was the idea and concept was so new and alien, many people felt uneasy in investing on something that they could not see, touch or feel.
The start of the growth
Bitcoin’s popularity began to grow and flourish in 2013, with the price of Bitcoin rallying over the $100 mark in June. However, by December of that same year, tis price had flourished to anywhere between $600 and $1000, but Bitcoin was no where near finishing.
2014 proved to be a hard time for a large proportion of the bitcoin community, as one of the largest Bitcoin exchanges of all time, Mt Gox, was hacked, and over 850,000 bitcoins were stolen, causing the who exchange to close, and many people losing their investment.
The Bitcoin price in 2015 wasn’t that lucrative, but much more than its starting price. The peak of 2015 came in October, where its price reached $333.75, before then decreasing to $326.55. It is clear that 2015 as a whole was not the best year for Bitcoin. 2016 was not a great deal better, but there was still a definite improvement, ranging from highs of $600 and $760 throughout the year.
2017, the year of the Bitcoin
In 2017 the price of bitcoin successfully passed all previous records, and skyrocketed impressively, climbing to unprecedented level. In just a 12 month period the price of Bitcoin rose from around the $900 mark to almost $20,000! This was a historic moment on the Bitcoin calendar, and meant that those that invested just $100 7 years previously were now worth over $51 million!
There were several reasons for this surge which collectively lead to the rising price of Bitcoin. Firstly, on April 1 2017, Japan announced that the country would recognise Bitcoin as legal tender. This was definitely a contributing factor to the initial surge in price as both Japanese individuals and corporations jumped on cryptocurrency exchanges in the hope of securing Bitcoin for future purchases. Hundreds of thousands of retailers also equipped themselves to accept Bitcoin payments. Following this announcement, Australia was quick to follow, announcing amendments to the legislation that eliminated double taxation on digital currency transactions. Canada also well and truly encouraged the use of Bitcoin, even inviting top cryptocurrency miners from China there to mine.
In May 2017, an annual Consensus conference was held in New York which resulted in a planned hard fork to a 2MB blocksize, which will contribute to Bitcoin being able to reach its full potential.
Undeniably, one of the biggest reasons to Bitcoin’s growth is that there are some citizens that have lost confidence in their own country’s economic structure, therefore seek other sources that are outside the manipulation of governments. With crises in country’s such as Venezuela and India, both have looked to Bitcoin as a means of financial security in 2017.
The current state of Bitcoin
Throughout its whole lifetime, and even more so in recent years, Bitcoin has been in the spotlight, with the media covering Bitcoin more frequently than ever, therefore exposing it to an even wider audience. These are just a few of the positive fundamentals that are continuing to contribute to the rising price of Bitcoin over the recent months.
The year of 2018 is looking a little uncertain for Bitcoin. In February its price was around the $10,000 mark, and in May it had decreased to $7,000. However, its history tells us that we may see it double or even triple in value, or equally things may start to take a downwards turn due to the rising competition.