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A Comprehensive Overview of Bitcoin As One Of The Major Cryptocurrencies

The financial world has been among the fastest in terms of evolution. This is a fact that we must appreciate. It all began with the early transactions that would involve exchange of commodities. This gradually evolved and led to the use of currencies. Today, the use of currencies owned by governments in the world tends to remain dominating. However, in as much as there is domination exhibited by the usual currencies used in different countries, the need for universality has been on constant rise for the past decade.

It is through the great demand for a better currency that cryptocurrency has come to existence. Out of the several cryptocurrencies in existence today, Bitcoin seems to have a strong lead. It is among the cryptocurrencies that has been on constant growth since inception. Today, individuals and companies across the globe are gradually appreciating the use of Bitcoin.

Bitange Ndemo, a former Permanent Secretary in Kenya had this to say.

The only issue, though, is that most people seem not to have ample knowledge in regards to Bitcoin. This is one of the reasons why majority of people sway away from investing in Bitcoin despite having a light idea of what it is all about. For the sake of fueling the interest of individuals towards Bitcoin investment, it is indispensable to expose anyone interested to all details in regards to the same.

This article aims at enlightening you on all aspects of Bitcoins for the sake of a fruitful investment in the long run.

 

The History of Bitcoin

 Apparently, the inventor of Bitcoin remains anonymous. No one know exactly the person who came up with the idea of introducing digital currency in the name of Bitcoin. However, a pseudonym to identify the person was brought about. Today, it is assumed that the person behind the invention is known as Satoshi Nakamoto.

The first release of Bitcoin was back in 2009. It first came as a open-source software that was 100% online based. The mechanism under which the cryptocurrency is traded is based on a public distributed ledger known as Blockchain.

Blockchain has since been acknowledged as the very first decentralized digital currency mechanism since it works without a central repository. In other words, there is no central party that regulates the movement and transactions in relation to Bitcoin.

Between 2009 and 2015, a large number of people had already indicated strong interest in Bitcoin. Key companies across the globe started appreciating and accepting Bitcoin as a medium of payment. Estimates indicated that over 10,000 merchants and vendors had already begun using Bitcoin by February 2015. Cambridge University undertook a research and confirmed that there were at least 5.8 million users of Cryptocurrency, with the majority using Bitcoin. Today, the number has grown further.

It is believed that in 5 years to come, the number of Bitcoin users globally will have doubled that recorded in 2015. This implies that the use of Bitcoin is on a constant rise and the trend is not about to dwindle soon. Apparently, the financial dynamics are all pointing towards the use of Bitcoin. The future of finance heads towards cryptocurrency and this is one of the reasons why any person anticipating to join the investment should go right ahead.

 

The Bitcoin Value and Conversion Rate Trends Since 2013

 Since the inception of Bitcoin, there has been evident trends that tends to tamper with its value. Basically, Bitcoin is universally converted into US Dollars. It can be further converted into other currencies depending on the location and preference of the trader. It has come to the attention of the world that major events that transpire in the world affect the value of Bitcoin either positively or negatively. The turn of events since 2010 has confirmed that there are forces that dictate the trend that Bitcoin will take in terms of value.

 

Let us have a look at some of the major occurrence since 2010 and the manner in which they affect the value of Bitcoin.

 

  • The Shutting Down of Tradehill

 On August 30 2013, Tradehill shut down. This came as one of the main blows to the value of Bitcoin. The value of Bitcoin by then stood at $131.48. In just 10 days, the value of Bitcoin had already gone down to $126.94. Although the drop was not that huge, it was significant enough to tamper with the related market.

  • The Arrest of Dread Pirates Roberts

This took place on the 1st October 2013. Apparently, the arrest of Dread Pirates Roberts had a direct impact on the value of Bitcoin. The value of Bitcoin as recorded on 1st October 2013 was $133.03. Following the occurrence, the value of Bitcoin rose to $135.12 in just 10 days.

 

  • The Hearing By The US Senate On Bitcoin

This took place in November 18, 2013. Apparently, this came as a major boost to the value of Bitcoin. The hearing was at the verge of making Bitcoin even stronger by implementing laws in that line. On the day of hearing, the value of Bitcoin stood at $685.75. However, the value of Bitcoin rose to $1072 10 days after the hearing.

 

  • DDoS Attacks

 It took place on 7th February 2014. By this time, the value of Bitcoin was estimated at $717.83. It only took 10 days after the DDoS attack for the value to drop to $616.5. Although it was not established clearly that the attack was responsible for the value depreciation, there were all indicators that indeed the occurrence led to that.

 

  • The Closure of Mt. Gox

This was after it was confirmed that hackers had exploited the software linked to the Mt. Gox website. It is believed that this is the key reason why Mt Gox was closed. The event took place on 24th February 2014. The closer of Mt. Gox came as a boost to the value of Bitcoin. The value of Bitcoin before the closure of Mt. Gox was $547.09. It rose to $662.57 in 10 days.

 

  • The Hacking Bitstamp

 It is among the landmark occurrences that too place in 2015. On 4th January, claims were aired that indeed Bitstamp had been hacked. This event was a major blow to the value of Bitcoin. The value of Bitcoin by then was $275.07. In just 10 days after hacking, the value went down to $198.59. It was confirmed that hackers had managed to steal a total of 18,866 Bitcoins. This is one of the reasons why a major depreciation in the value of Bitcoin was recorded.

 

  • Declaration of Bitcoin as a Commodity

The US regulator declared Bitcoin as a commodity on 18th September 2015. This came as great news to the users of Bitcoin. Before the declaration, the value of Bitcoin was $234.65. In a period of 10 days, the value shot to $238.15. It event was apparently seen as a major turning point of Bitcoin valuation. It was believed that the value would maintain a constant rise all along.

 

  • The Launch of Gemini Exchange

The event took place on October 8th 2015. It was expected that the value of Bitcoin would raise right after the event. True to the stipulations, the value indeed rose. Just before the event took place, the value of Bitcoin was $245.48. 10 days later, the value of Bitcoin rose to $268.01. It is believed that this is one of the main events that dictated the speculative value of Bitcoin in the years to come. The Gemini Exchange was fully in compliance with the US law.

 

  • Declaration of No VAT on Bitcoin Trades

The European Union through the court of Justice made a declaration that any trade in relation to Bitcoin would be VAT free. This came as great news to Bitcoin traders. The value of Bitcoin before the declaration was $273.82. In just 10 days, the value had shot to $318.43. Although the ruling was not in favor of some of the United States regulatory rules, the news still came as great news to Bitcoin investors.

 

  • Election of Donald Trump as The President of United States of America

The just concluded US elections came with a major influence on the value of Bitcoin. Apparently, there was not expectation that Donald Trump would defeat Hilary Clinton. However, the unexpected happened and Donald Trump became the president of the United States of America. Upon the election of Donald Trump, a major effect on money markets was felt. The value of Bitcoin by then was $726.36. In just 10 days, the value shot up to $749.1.

 

  • Denial of Bitcoin ETF Application by SEC

 It is among the major events that have influenced the value of Bitcoin in 2017.The United States Securities and Exchange Commission denied the Bitcoin ETF application, and this was seen as a major effect on the value of Bitcoin. Before the denial, the value of Bitcoin stood at $1044.25. It took 10 days only for the value of Bitcoin to rise to $1190. This was acknowledged as a major development in the cryptocurrency world.

 

  • Splitting of Bitcoin and Bitcoin Cash

It is the latest event that took place on August 1st 2017. Apparently, this would mark the main turning point of the value of Bitcoin. Before the splitting took place, the value of Bitcoin was $2787.85. In just 10 days, the value went up to $3387.79. Arguably, this was the only occurrence that appreciation gap of the Bitcoin value was this wide.

  • The Current Value of Bitcoin

 Believe it or not, in just a span of less than 10 years, the value of Bitcoin has already rose to approximately $4,388.85. This is also attributed to the many turn of events that have transpired in the cryptocurrency world.

According to different financial speculators, the value of Bitcoin is expected to rise even more over the years to come. It is actually speculated that the value of Bitcoin will be double the current position in year 2020.

 

Verdict

 From the above trends, it comes out clearly that major events across the world tend to tamper with the value of Bitcoin. The value can be affected both negatively and positively depending on the impact exerted by the event in questions.

The events above play the role of providing indicators to investors. Any person trading Bitcoin can easily tell the most ideal point in time to make sales and when not to. The truth is that the value of Bitcoin is expected to rise even more hence the need to eliminate fear of investing in the same.

 

Why Should You Invest In Bitcoin?

 Evidently, there is something great behind Bitcoin investment. It is true that people are gradually appreciating Cryptocurrency. However, not every person out there has the courage of making the bold step of investing in cryptocurrency.

So, which are some of the convincing reasons why you should consider investing in Bitcoin:

 

  • Higher Chances of Profits Than Losses

 Since the inception of Bitcoin, there has never been a constant trend of loss in value. Actually, only a few events have made the value of Bitcoin to depreciate. Professional financial speculators actually argue that there are high chances of having Bitcoin at a double value as compared to its worth today. This comes as a confirmation that Bitcoin is indeed on a rising trend as far as value is concerned. Investing in Bitcoin means that you stand more chances of making gains than losses.

 

  • Universal Appreciation

Although Bitcoin was not well known well several years back, things have already changed. Today, companies across the world are gradually appreciating the use of Bitcoin. A considerably large number of countries today have acknowledged Bitcoin as a means of payment and the trend continues. In years to come, even more countries will join the wagon.

In this regard, there is absolutely no fears in investing in Bitcoin since major parties and individuals are appreciating the use of the cryptocurrency. As time goes by, cryptocurrency, Bitcoin included, may dominate the normal currencies. This is speculative though.

  • Secure Investment and Guaranteed Interest

While some financial investments may not guarantee you safety and security, Bitcoin does. It has been confirmed that Bitcoin is a commodity. This means that you can hold Bitcoins and sell when the market is convenient enough. The good thing is that you can make good interest from Bitcoin investment. It is almost a sure guarantee of making interest from Bitcoin.

 

  • No Regulating Body

The value of Bitcoin can easily be affected negatively by regulating bodies. The good thing is that Bitcoin has no regulating bodies. This means that it is a matter of trader to trader. Exchange of Bitcoin does not require an intermediary. It is transferred instantly.

 

  • Easy Access

 There is no any processing that is required for you to access your Bitcoin. Investors also do not have a given period to hold Bitcoin. You can hold your Bitcoin for as long as you wish and invest when the market is convenient for you.

 

  • Conclusion

Overlooking the essence of Bitcoin investment could be the big mistake you are making now. From all indications, the direction the Bitcoin is taking is indeed promising. So many people have made a lot through Bitcoin investment. More is still yet to come. In a nutshell, you should take the initiative of investing in Bitcoin any day since that comes with a main guarantee for returns in the end.

Where can I buy bitcoins? There are many sites that sell bitcoins. A good example is local bitcoins.

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