Bitcoin price and valuation has been constantly changing. The pricing of the Bitcoin has been very volatile ever since its inception in 2009. The revolutionary currency has seen a host of ups and downs in its brief existence. To put things into perspective, the Bitcoin began trading at a meager price of around USD 0.08 per coin in July 2010. It rose meteorically and crashed too along the way. Let us find out.
Bitcoin price Background
The revolutionary cryptocurrency was first invented by a mysterious figure by the name Satoshi Nakamoto way back in 2008. This was the first time a cryptocurrency was mined and it could be used for peer-to-peer fund transfers. The currency was mined using blockchain technology which is nothing but a public ledger which consists of transactional details of all the users of the network. Though it seemed like a stupid idea at first, the cryptocurrency gained worldwide exposure and acclaim, in the form of good and bad. The bad being the shutdown of a black market website, Silk Road, which used bitcoins for monetary transactions. The good part was it was a currency which gave financial freedom and flexibility to users as bitcoins could not be tracked or controlled by any financial institution including central banks. It provided for secure transactions irrespective of geographical locations.
Though the price of the Bitcoin was very low during its initial years, it started to take off in 2013 when the currency began trading at USD 13.50 per unit. The price rose swiftly to USD 220 in April of that year while it again fell to USD 70 during the very same month itself. This is the very first time the world witnessed the meteoric rise and fall of the great Bitcoin. The rise and fall definitely made investors more enthusiastic about prospects of investing in Bitcoins.
Trading and Increase in value
The real growth of the Bitcoin began towards the end of 2013 during the months of October and November where it touched almost USD 1120 by the end of November 2013. The reason for this rise was the birth of new exchanges and miners in China. Exchanges such as Mt. Gox were responsible for almost 70 % of all Bitcoin transacted worldwide. By December it fell to USD 750 by December and stabilized to USD 920 during the start of January 2014. The priced fell to a low of USD 260 by Feb 2016 which represented a decline of almost 71 %. The price fluctuated much throughout the whole of 2015 and began 2015 at about USD 315 per unit. After further fluctuation all through the year, the currency ended the year at a price of USD 360 per unit.
2016 turned out to be a future determining year for the Bitcoin as it was slowly starting to gain importance worldwide. Major financial instructions like Cabinet of Japan and Bidorbuy now started recognizing the Bitcoin as a form of money and the number of Bitcoin ATMs doubled in the same year. These trends ensured that the price of the Bitcoin fluctuated between USD 500 and USD 1000 all through the year.
2017 marked the meteoric rise of the Bitcoin value as more and more businesses started to accept bitcoin as a means of payment. The number of exchanges grew and the price of the Bitcoin skyrocketed to USD 4,400 per unit by August 2017. By November 2017, the price rose to about USD 7000 per unit. By the end of the year, the Bitcoin touched its all-time high of USD $17,900 per unit. However, 2018 had mixed results of the Bitcoin’s valuation as it plummeted back to USD 6200 by February 2018.
Risk in bitcoin investment
Given the popularity of cryptocurrencies today many people from all across the globe are looking for how to invest in bitcoins. The Bitcoin is certainly a revolutionary form of digital currency which has definitely changed the way we see money today. It has also inspired the development of other new cryptocurrencies. With more and more cryptocurrencies sprouting in the market, the valuation of the Bitcoin will continue to vary as there is no specific trend or pattern when it comes to its valuation. Hence, it’s a calculated risk which can or cannot be worth taking. Today Bitcoins is the most traded cryptocurrency and it is available almost on every popular crypto exchange. If you’re looking to purchase or know how to invest in bitcoin with little money you can read our step wise guide on how to buy bitcoins online.