Yes, we are discussing the rocketing price of bitcoins in the past year. How drastic the change was, right? It has also made more people show interest in bitcoins and Cryptocurrency. The increase has reached almost ten-fold since last year. We know that this is record-breaking. The reasons for this rise could account for the sky-rocketing use of online payments and transactions. This way, people look for transactions with a lesser fee, which bitcoins have as their key feature. Bitcoins have reached a record-breaking price. Will this price continue to go up in 2021 as well? Read ahead to know what experts say. Want to invest in bitcoin too? Create an account with Bitcoin Billionaire then.
Bitcoins and blockchains:
Bitcoins and blockchains set the trend for the cryptocurrency evolution. Bitcoins originated as the first Cryptocurrency in 2008. Since then, it has been in the market and ranked top in value basis among the evolving cryptocurrency community. Bitcoins work as regularly as your computer files. Each bitcoin is like a file but has value in real money. The bitcoins don’t have any notes or coins and only exist as these computer files. You can use the bitcoins for making payments at platforms that accept bitcoins as a currency.
You can loan and earn bitcoins and store them in your digital wallet. You can then use it to make the payments we discussed. When you use bitcoins, you can make transactions with almost zero transaction fees. You also don’t need banks for your bitcoins. You can manage them, or preferably your digital wallet does it for you. You can earn bitcoins in different ways. You will find methods that are free but require your time and effort. You can also buy bitcoins for real money and store them. With bitcoins, you can even buy plane tickets, and the market expects its functions to grow in the coming years.
Another essential feature for the popularity of bitcoins is the way of functioning. Bitcoins use a system called blockchain technology—the blockchain functions as an online ledger for bitcoins. You can understand the blockchain as a database that stores all the transactions made with bitcoins. When a person earns or spends a bitcoin anywhere in the world, the blockchain records it. Amazing right? This technology makes bitcoin transactions very secure and helps experts notice mishaps right at the beginning and prevent them from happening.
History of Bitcoins:
The idea of bitcoins first originated in 2008. Experts found an email with a proposition for online currency. In the next year, 2009, someone called Satoshi Nakamoto launched Bitcoins through a site called bitcoin.org. We have no information about Nakamoto, though, who founded the Cryptocurrency. A cypherpunk received the first bitcoins. He downloaded the software on September 12, 2009, when they launched it. He received around 12 bitcoins nine days later. The first transaction took a year. However, when a programmer decides to buy pizza using bitcoins. Since 2010, bitcoins have continued to top the market in Cryptocurrency, and the prices kept rising. It kept increasing all from 2011 to 2014, after which prices began to drop. In 2017 it again reached new heights. The price of bitcoins is always fluctuating, and this year it has reached new heights.
Another reason for the popularity of bitcoins is the security level, as mentioned. In the history of bitcoins, only one incident of fraud or hacking took place, but experts noticed it and fixed the situation before it was too late. Malpractices get recorded in the blockchain technology, which prevents people from escaping or cheating others with bitcoins.
However, you must cautiously choose the associations that will function as third-parties when you deal with bitcoins. The third-parties play a significant role in your transactions and bitcoin account. Some third-parties don’t pay you properly for your work or money spent, and some others hack into your account.
You can earn bitcoins through different methods, and you must make sure to choose the right associations for earning bitcoins. In 2010, Nakamoto disappeared totally and left Gavin Andresen in charge of the site. Since then, we haven’t heard anything about Nakamoto, the originator of Bitcoins. Bitcoins then evolved into other cryptocurrencies such as Bitcoin Cash and Bitcoin Gold. Though they have the same core name, the currencies differ in many ways. Thus bitcoins came into existence and evolved a lot to reach the current value and role they hold in the market.
Pricing of Bitcoins:
Bitcoin has lived for more than a decade now. During this time, its value has both increased and decreased, and it kept fluctuating. Investors found it hard to follow as the price kept changing daily. Its first change in price happened in 2010 when it increased from $0.008 to $0.08. Then in the same year, it reached one dollar. The prominent rise happened in 2011 when from $1 it reached $32 within three months from April to June. However, it dipped down in November of the same year, to $2. Its price came down as swiftly as it went up.
In 2012, it followed a static rise, increasing from $2 to $4.80 in May and $.13.20 in August. It looked like a successful improvement for bitcoins, and further increment followed suit. In 2013, it raised to $220! But like before it dropped quickly to $70. But it still had a higher price than it did during the start of the year, which you can count as a win. In the second half of the selfsame year, it increased to 123.20 dollars, and by the end of 2013, it had reached $1156.10! You can call it a fantastic spike, but it didn’t stay the same. It dropped to $760 within the week of the fantastic spike.
It kept decreasing, and in 2015 it had reached $315. The next important milestone for bitcoins occurred in 2017 when the price shot up to 1000 dollars. The value fluctuating to $975.70 by the end of the year reached an impressive $20,089! This milestone set bitcoins right on top in the cryptocurrency community, and bitcoins gained immense popularity. Though it kept decreasing after 2017, the economy shut down during the pandemic did boost it up.
In 2020, Bitcoins were valued at $18,353 after three years and reached $24,000 by December. The prices have taken a continuous rise in 2021, too, and led to the record-breaking run. Thus bitcoins had come a long way since 2008 when they didn’t sum up to even a whole dollar!
Bitcoins’ value in 2021, and will it continue the same?
Bitcoins have reached a new level of pricing this year; will this pricing continue to rise? Bitcoins value today amounts to $37,349. It happens that experts at Cryptocurrency had predicted such a rise from the beginning of last year. In May 2020, experts said that bitcoin is still far from hitting its peak, record-breaking rise. They expect it to reach a value of about 1 million dollars very soon. Experts still expect it to keep rising in the coming years. In May 2020, Bitcoins underwent an event or process called halving. People who invested in bitcoins lost 50% of their investment, which happened due to bitcoins’ scarce availability.
Investors have started trusting bitcoins more; they have begun to make more investments than ever before. This newly gained trust, the economy to lose during the pandemic, and put bitcoins on the top. Experts say this will continue for a while now. Bitcoins’ prices were always fluctuating, and investors have found it hard along the way. They have hesitated to invest, and people didn’t consider investment in bitcoins as stable. But the situation has changed. Investment in bitcoins today, people consider it like any other investment in the market. More people get to know about cryptocurrencies and are willing to invest in them. Bitcoins have gained popularity since the economic loss.
Technology has always continued to evolve. It led to new inventions and changes every other day. You can call bitcoins one such invention and innovation. Bitcoins and Cryptocurrency will become popular in the coming years as technology advances further. People look for digitalized alternatives for many of their assets. The digitalization of money has already begun and reached great heights. It’s only a short while when people decide that Cryptocurrency has more benefits and meets the need of digitization quite effectively.
A cryptocurrency expert, Danny Scott, predicted that Cryptocurrency would reach the record one million dollars within the next 12 to 18 months. It helps investors trust in Cryptocurrency, and the fact that it keeps getting higher every day holds proof for the same. Another expert, Sachs Hedge, has predicted a similar rise stating that Gold has the chance of going three or five times its current value in the 3 to 5 years, and you can expect bitcoins to reach 1 million dollars in about the same time.
Other cryptocurrencies have also continued to rise during this time. Ethereum, the second-highest valued Cryptocurrency after bitcoin, has reached $600 after seeing a 350% rise in the past year. Investors show the same interest in Ethereum as they show in Bitcoins today.
Bitcoins have had some pretty drastic changes in price during its entire course, at times increasing and dropping down tremendously for a much longer time. But with evolving technology, experts expect bitcoins to reach new heights in the coming years. They also say that more associations will adapt to Cryptocurrency, thus increasing the usage and roles of bitcoins and other Cryptocurrency. This fact guarantees a continuous rise in the pricing of bitcoins moving forward from here. Thus you too can trust and begin investing in bitcoins!