Bitcoin – The Hottest Cryptocurrency in 2016 and 2017
The hype of Bitcoin and cryptocurrency is booming at an unprecedented pace. Since 2009, the tragedy behind “Satoshi Nakamoto” is still a puzzle who presumed to be the creator of Bitcoin by Google and other online sources.
Bitcoin is a decentralized digital currency, and a peer-to-peer system works without any central authority like bank or government. Under this open source software, transactions are verified through the network nodes and recorded in public distributed ledger, called blockchain.
Back in 2009, Bitcoin was first used to buy Pizza. During that time if you would have invested $100 in Bitcoin, you would be worth whopping a million dollars today. That’s the kind of more than 100% return on your investment.
Bitcoin’s journey and volatility since last two years!
The currency which was trading at $367 during January 2016 has surged up to $13000 in December 2017. This journey counts for apical volatility and controversies from industry leaders. Despite, Bitcoin being a real media sensation, it stands firmly on the top of all cryptocurrencies.
A volume from January 2016 – December 2016
The price of Bitcoin has climbed beyond 50% from January 2015 to January 2016. Its value picked up to rise from $300 to $430 by year end 2015.
According to a data from Coinmarketcap, Bitcoin reached $952 on December 31, 2016, climbing from $433 in January 2016. The Hetrick movement in bitcoin price came when Ashvin Bachireddy, co-founder of Geodesic Capital, a Silicon Valley blockchain startup 21 Inc, said, Bitcoin is efficiently becoming digital gold.
He was detailing,
“You can continue to see further validation of bitcoin as something detached from a centralized government that allows people who work to preserve wealth in a secure way.”
Following this, Bitcoin rose to $780 as much as 8.7 percent. However, the currency was bobbing up and down around $400 in Mid-January 2016 and then plunged to $ 952 in the preceding month. Since most people are finding the substantial potentials of Bitcoin, it is being accepted as a trusted source of payment by many business firms and networking entities.
Bitcoin from January 2017 -December 2017
Rising like a human’s expectations, 2016 was putting Bitcoin on the rising track for the coming year. Notably, 2017 was a year of Bitcoin. This decentralized digital asset began from $1000 (above or below that line) in January 2017 and surged to $13000 at the of the year.
If you just turn the history, you may hardly find any year with more fluctuation as the year 2017. You may discover record-breaking media coverages on bitcoin as and when bitcoin crashed the market, predicting new hopes.
Topping from $1000, investors were experiencing a new jump every second, weeks and month. Of course, there was no excellent growth until six months, but the real mystery began from October with a price range between $4000 to $6000, and this was more like a base value of growth until mid-December 2017.
However, the value abruptly fell as much as 50 percent, from opening a gate of $19000 briefly to figuring down at $ 13000 a week later.
Flux of bitcoin
There are many factors behind such a fast flux of bitcoin. In the realm of cryptocurrency and global acceptance, bitcoin has multiplied over seven times in 2017. Few of those are described below.
Many critics have labeled the rise of Bitcoin a bubble, fake currency, tower of death and so on. While other appreciating bitcoin say it digital cash, digital asset, store of value, new gold and unlike.
Discussing the meteoric rise of bitcoin cannot be parted its growing acceptance by players like M’c Donnals, KFC Canada, Microsoft, etc. Similarly, its fall would have triggered by the ban/ warning from countries like South Korea, China, India and US towards ICO and cryptocurrencies.
Additionally, an introduction of bitcoin futures was the driving force for bitcoin price in 2017. Bitcoin rose 14 percent when CME, CBOE, and Nasdaq (the world’s largest exchange holding companies) announces Bitcoin futures trade. And later when the launch began, Bitcoin’s price falls slightly.
Nevertheless, predictions and fluctuations have become communal in crypto industry. But the real fact behind a rapid rise and fall of bitcoin is more like a chicken and egg situation. The correlation puzzle behind the price volatility and the factors like ban/appreciation by players is unsolved. Therefore, it is quite difficult to say which drives which and may not have an answer.
According to a report from Bloomberg, there were 19 forks came out last year and 50 more could come out this year according to Lex Sololin, director of Autonomous research. The significance of fork may also trigger the price fluctuation in cryptocurrency market.
Aside from legislative regulations, bitcoin is still trading at a high volume across the world and analysts are continued predicting its likely future. Bitcoin is way middle the case, neither it is legal nor legal, perhaps people have been envisaging to earn substantial returns from the investment.
It’s worth $10236 on Wednesday, according to data from Coinmarketcap, falling beyond nine percent a week ago and more than 25 percent from a month ago. These fluctuations are leaving a mark on how quickly things can change for investors and traders.