When BitCoins were first released in early 2009, there was no price associated with BitCoins since there were no existing currencies that could be directly exchanged for them. A number of early adopters began getting involved in BitCoins since they saw its potential as an alternative medium of exchange.
Bitcoin Price – The Ups and Downs
The BitCoin community grew and the BitCoin price in January 2011 was at $ 0.30. Its value was mainly based against the U.S dollar and it still is (as of this writing). After a number of ups and downs, the BitCoin price landed at around $ 4.25 by the end of 2011.
Bitcoins (like paper currency) will always go through trends of volatility. Unlike paper currency however, bitcoins have two advantages:
(1) Only a limited amount of BitCoins will ever be on the World BitCoin Exchange (BlockChain). This safety net ensures that BitCoin traders will never run into a case of “runaway inflation”. Multiple countries around the world are currently suffering from financial mismanagement of their paper currencies and citizens are turning to alternative currencies – like BitCoins.
(2) BitCoin trading is decentralized – all computers from around the world (including mobile devices) can connect to the exchange network. This decentralized nature ensures that no one individual, corporation, government or bank can have the ability to easily manipulate the BitCoin price. But that does not stop them from trying.
BitCoin Price – Wild Market Speculators
In 2013, the popularity of BitCoins grew even further. Wild speculators began jumping in and out of the market. From January to April, the BitCoin price shot up from $ 13.25 to $ 266.00. A price correction kicked in and pulled the price down to $ 50.00 a week later.
The United States Senate needed to have a “hearing” about BitCoins that year (because when you cannot control something that is not meant to be controlled by any government, having a so-called “hearing” is really important – note the sarcasm).
The BitCoin price peaked at around $ 1,240.00, but finally settled down to $ 800.00 by the end of 2013. It was pretty obvious that wild speculators were trying to treat BitCoins with the same wild abandon as in the “paper currency stock markets.”
The year of 2014 was the year of “market correction” where the price trend generally went down until the BitCoin price was about $ 325.00. This year was also very important because it was the year of the “BitCoin Venture Capitalists”. Over $ 300 million dollars of venture capital investments were used to expand and enhance the Bitcoin network infrastructure.
This expanded and enhanced infrastructure is what allows people from anywhere in the world to easily get a BitCoin wallet and begin trading in BitCoins – without having to be a “technology wizard”.
BitCoin Price – Stable Investing and Beyond
Venture Capitalists are adding more investment capital into the BitCoin infrastructure and BitCoins are now recognized as a true and viable alternative currency in many countries around the world. More and more online companies are accepting BitCoins as a form of payment.
The worldwide acceptance of BitCoins is very important to the stability of the BitCoin price. If you have not invested in BitCoins as yet, then there is no better time than now to do so. The BitCoin currency has indeed proven itself to be a viable alternative medium of exchange.
Subscribe here: https://goo.gl/9FS8uF
Previous Financial Episode: https://www.youtube.com/watch?v=mQUhJTxK5mA
Become a Patreon!: https://www.patreon.com/ColdFusion_TV
Links to start investing:
Hi, welcome to ColdFusion (formerly known as ColdfusTion).
Experience the cutting edge of the world around us in a fun relaxed atmosphere.
Don Tapscott @ TED 2016
» Google + | http://www.google.com/+coldfustion
» Facebook | https://www.facebook.com/ColdFusionTV
» My music | http://burnwater.bandcamp.com or
» Collection of music used in videos: https://www.youtube.com/watch?v=YOrJJKW31OA
Producer: Dagogo Altraide
» Twitter | @ColdFusion_TV