Bitcoin is a type of cryptocurrency invented in 2008. In cryptocurrency, bitcoin is the leader of the pack. It’s market capitalization sits at 119.62 billion US dollars. This is calculated by multiplying the number of bitcoins in circulation by the bitcoin’s price. Currently, 1 bitcoin equals to 16783.90 USD. Continue reading this article to learn more about bitcoin’s growth, and it’s relation to U.S dollars and if it will surpass the U.S dollars someday or not.
Bitcoin is separated from governments and central bank. Therefore, it is organized through a network called block chain which is an online ledger that keeps a secure record of each transaction and the bitcoin’s price all in one place.
The growth of bitcoin.
Bitcoin is a very volatile asset subjected to huge price swings. There is both appreciation and depreciation. In 2017, it’s price was able to appreciate from under $11,000 at the start of the year to a new record of $19,700 at the end of the year. In 2018, the price crushed down to just above $3,000 by the end of the year.
From then, they began to see institutional and accredited investors who were operating within the bitcoin space, bringing a level of market maturity and financial understanding which was absent the other years. Though the risk of substantial drop is still there, bitcoin can still make it.
Concerning the progress, Lunos Ayyar said that they have grown from 3,000 to 10,000 a growth which came too soon and too fast. This meant that, there will be a pullback, and that will determine what kind of crush will come. There was a 50-50 chance of pulling back to 8,000, hold and move higher, or go back down.
Small but important things to observe in bitcoin price USD.
Predictions say that the price will surge to 1 million in 5 years from about 11,000 now. This will be an enormous wall of money.
- The halving.
Part of the rice in bitcoin price since March low, have been anticipation of a technical event called halving. In the world of bitcoin, the miners compete amongst themselves to solve complex maths problems which validate bitcoin transactions. The result is, whoever wins, gets rewarded. Miners then receive 12.5 bitcoins per mined block.
The rewards are then halved every few years to keep a lid on inflation. In the halving time, the reward per miner will be cut in half again to 6.25 new bitcoin.
The effect is that, the supply of bitcoin coming onto market is reduced. Halving events, have proceeded big price increases in bitcoin.
- More institutional money flowing into bitcoin.
Once, a high-profile Wall Street hedge fund manager, revealed that one of his funds holds a low single digit percentage in futures of the cryptocurrency. The news backed bitcoin publicity. This has helped catalyse bitcoins sudden movement to 10 million US dollars. With the monetary easing policies and economic stimuli that have been recently unveiled across the world, other currencies seem to weaken substantially. This has lead to bitcoin’s value to gain added fraction amongst the investors who are seeking to grow in traditional markets. It has been compared to gold as a safe haven asset during turbulent times for risky assets like stock markets.
Bitcoin price predictions.
This is an idea to guide the investors to see whether they should sell more or buy more bitcoins.
The industry experts predicted that bitcoin has a potential to hit five to six figures be the end of the year 2020.
- In the issue of the magazine of Bloomberg crypto Galaxy Index, the analyst said that the major flow, might be the only way for it to lose traction otherwise investors should be investing more.
- It has advantage over others in the same asset class like gold, crude oil and others.
- Many businesses stopped taking cash amidst the Covid 19 pandemic and because of that, cash continues to decline.
- The usability of bitcoins is becoming more attractive for people to explore.
The bitcoin’s price in USD has never fallen to zero though it has been rising and falling at some point. It is good as a store of value and not as a medium of exchange and so the bitcoin might not surpass the US dollars. Because it is underpinned by a technology it will really rise in value.