Bitcoin is the first cryptocurrency. It is also one of the best-known cryptocurrencies that are in existence today. Bitcoin is a part of the landscape now that is inescapable.
This coin with itself brings high volatility. The volatility makes it the best choice for inexperienced investors and for the people who are looking for value. Understanding the ins and outs of bitcoin will tell us about how it works and its value.
Why does Bitcoin have value?
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How much is bitcoin worth?
There are many things other than money that can be of value such as gold and diamonds. The bitcoins are also valuable as the people are willing to exchange them for real goods.
Some people like the fact that bitcoin is not controlled by banks or governments. People can also spend their bitcoins anonymously. All the transactions are kept under a record. Nobody will know which account number was it unless that you had told it to them.
In an online chat in January 2021, the world’s richest man, Elon Musk told everyone that he is a big supporter of bitcoin. Most of the time he has shown his interest in supporting online currencies in recent years. This has caused the bitcoin to rise in values due to his wealth and influence. These endorsements have led to a rise in value.
What is the Price of Bitcoin?
Among most of the assets, bitcoin is one volatile investment that has been proved profitable time and time. Currently, the price of bitcoin is valued at $56038.26. (As of Oct 14, 2021)
How Much Is Bitcoin Selling for Right now?
BTC Price Statistics (As of Oct 14,2021)
Bitcoin Price $56,038.26
24h Low / 24h High $54,477.97 / $57,627.88
Trading Volume 24h $41,081,558,768.32 3.67%
Volume / Market Cap 0.03891
Market Dominance 45.82%
The history of Bitcoin’s Price
Well for most of the part, the investors of bitcoin had a ride that has been bumpy in the past 13 years. The price changes have outpaced the usual volatile swings sometimes. And it have resulted in various price bubbles.
● One of such first happenings occurred in the year 2011. This was the year when the bitcoin price jumped from $1 to $32 in June and there was a gain of 3200% in three months only. This is one of the steep ascents that was also followed by a very sharp recession in the crypto market. Suddenly, the bitcoin price has to face a downfall up to $2 in November.
● The year 2013 has been proved to be a very decisive year for bitcoin. The digital currency began in the year at $3.40 and there were two price bubbles in that same year. The first one was when the price was increased to $220 at the beginning of April 2013.
● Another shot up happened in the same year when bitcoin was trading up at $123.20. By December, there was a spike to $1156.10. But after 3 days, it fell to around $76. These were some of the rapid changes that signaled the slump in the bitcoin price. It touched a low of $315 at the beginning of the year 2015.
● The fifth bubble accord in the year of 2017. The price of the cryptocurrency was at $1000 and in December it saw a spike to $20,089.
● By March of 2021, the bitcoin price had now reached the all-time high of $60000. But in the summer, there was a backdrop to $32,000. In the autumn of 2021, there was another bull run when the prices embarked on $50,000.
How to check the Bitcoin price
There are many websites through which you can track how much bitcoin is worth. These websites are mentioned below:
Coinmarketcap
Cornmarketcap is one of the world’s first referenced cryptocurrency price-tracking websites. It is rapidly growing in the crypto space. The sole mission of Coimarketcap is to make the crypto discoverable and efficient globally. It motivates retail users with accurate and high-quality information.
Coincodex
The Coincodex can be explained as the aggregator of cryptocurrency information. They are gathering data from the 210 exchanges to bring you real-time prices. Their watchlist and portfolio features allow you to track the performance of your coins.
Cryptocompare
Cryptocompare is an authority for clear and crisp information that is offering unparalleled scope and depth of data. This website gives retail investors real-time, high-quality, and reliable data on coins.
What determines Bitcoin’s price
Supply and Demand
Well, this is basic economics that when the demand is going to exceed, the prices are going to rise. This case is like bitcoin. Two factors will affect the supply of bitcoin.
The number one is the bitcoin protocol. The next one is the number of bitcoins the system has allowed to exist.
Competition
Although bitcoin is the best-known cryptocurrency, other tokens also grab the attention. In the March of 2021, Ethereum (ETH), Tether (USDT), Binance (BNB), Cardano (ADA), and Polkadot (DOT) are among the closest competitors of bitcoin. And the competition is going to have an impact on the price of bitcoin.
Cost of Production
The electricity consumption in bitcoin mining is also going to play a significant role in determining the price of bitcoin.
Availability on Currency Exchanges
The retail investors are going to trade the cryptocurrencies on various portals.
Regulations and Legal Matters
A rapid rise in the popularity of cryptocurrencies has caused regulators to discuss how to classify digital assets. This further impacts the price of bitcoin.
Forks and Governance Stability
As we all know, bitcoin is not governed by any of the central authorities. The blockchain needs to be secure when developers and the miners start the transactions. These software changes frustrate the bitcoin committee. This is going to take a longer time to resolve and thus impacts the price of bitcoin.
FAQs
What is bitcoin?
Bitcoin can be described as a consensus network that enables a new payment system for digital money. From the user’s perspective, bitcoin is like cash for the internet.
Who created bitcoin?
Bitcoin was created by Satoshi Nakamoto in 2009. Satoshi left the project in 2010 and then the community has grown exponentially by the developers working on bitcoin.
Who controls the bitcoin network:
No one owns the bitcoin network. This is as much like nobody owns the technology for Email. Bitcoin is controlled by bitcoin users all around the world. Thus all the users and the developer have a strong incentive to protect the consensus.
What are some advantages of bitcoin?
● Choose your fees
● Payment freedom
● Security and control
● Transparent and neutral
● Less risk for the merchants
