The price of bitcoin has decreased drastically, plunging from $47,900, to the lowest levels since 2015. At one point in 2017, it surpassed $50,000. In January of 2020, the BTC price dropped by 995%. And the recent plunge continues as more and more investors jump in again. As soon as this year started, a new record was set - a daily BTC value of $45,350. But that is nothing compared to last summer when BTC's prices were plummeting. Last summer saw an unprecedented drop. It reached its low - just shy of $35,000 and was over $42,500 in mid-December, before falling right back down to about half of what it was in June. Now, back to December, after months of bitcoin being incredibly stable. Here's where we are now on the bitcoin value.
Bitcoin Currency: $47,900
$47-48,900: Lowest BTC prices since 2016
$49,300-$50,100: Highest BTC prices since 2015
Bitcoin is a digital currency, in existence for over 3 years. A digital asset, which can be exchanged and bought or sold for fiat money and other cryptocurrencies. This means there is no need for you to get a bank account – this will not affect your financial status. Unlike a traditional bank account that will give you access to all sorts of features via their mobile app, with bitcoin you get free, unrestricted payment options. They include payments through PayPal, Venmo, etc. and many more. If you have any doubt how trustworthy this crypto-based system is – trust me, you don’t have to think twice.
The most interesting thing about bitcoin is that in reality, the currency is a token. To put this simply, instead of owning assets like stocks or land, people who use this cryptocurrency are using virtual coins. So, in fact, you might own Bitcoin; your wallet, rather than your real assets, can be used to transfer funds. However, the advantage is that unlike most banks, you do not have to deal with pesky fees and charges that come along with dealing with these kinds of things. You do not have to hold cash or a minimum balance of transactions. There’s also zero risk involved and the amount of money that you can make is unlimited.
Although the price of bitcoin has decreased dramatically from the highs set during last summer, still it remains incredibly stable at $48,900. That is definitely a huge climb from the lows achieved during February and March. Considering it has been doing so consistently, I believe it’s time to look at the biggest factor affecting this currency and this market and it’s not just volatility. According to data, the majority of analysts believe that this volatility is the result of institutional investor buying up shares right before the start of the recession and the subsequent downturn. The reason so much volatility occurred last summer and the following month is because investors were waiting for news of new stimulus packages to hit the markets.
Now, here’s what I would change about bitcoin. One thing I would improve upon was the volatility. With the recent increase in interest in the cryptocurrency, it is easy becoming confused. For example, if you want to know whether bitcoin is going through extreme volatility and high rates of inflation, that’s another question entirely. Although it‘s possible that the cause of the instability could be institutional investors increasing share prices, the main reason being that the economy is far too weak to support a large increase in bitcoin’s price. This week, there are some signs that investors see the potential of bitcoin reaching higher lows again as soon as COVID hits the retail industry and more economic stimulus is imposed.
0 Comments