Bitcoin price history article, Bitcoin is a digital currency, It allows you to make transactions with no intermediaries. bitcoin is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen., From a user perspective, bitcoin is pretty much like cash for the internet.
It has recently gained more media attention than any other virtual currency or cryptocurrency. The price of 1 bitcoin surpassed $1,000 USD in late November 2013 and since then has risen dramatically to over $65,000 per bitcoin at its peak! There are many reasons to get excited about bitcoin now more than ever.
The journey of bitcoin price history through the ranks
In this article, I will give you some initial information from my experience as a local austinite who has been following bitcoin closely since 2011 and participating in the community as a speaker at several conferences throughout texas. This article is meant as an informative starting point along your journey in learning about bitcoin & cryptocurrencies.
From this guide you’ll learn:
- How does bitcoin work?
- What are the benefits of using bitcoin?
- Who uses bitcoin & why do they use it?
- How is bitcoin regulated in the financial system?
- What are some common misconceptions about bitcoin? A little about altcoins.
I have broken up the guide into categories to make it easier for you to navigate according to your interests, click on a link below or just scroll down!
First, I will give you an explanation of how this fascinating new decentralized technology called “bitcoin” works, and then I’ll dive into what makes cryptocurrencies so special. We’ll start with some faqs that answer basic questions, then move on to who uses cryptocurrencies, and lastly wrap up with some resources for further learning.
Let’s dig in…
What is bitcoin and what are its benefits?
At its core, bitcoin is a platform for users to make peer-to-peer payments with no intermediary bank or authority. Your money goes directly from you to the recipient with minimal processing fees and without banks, governments, or any other financial institutions getting in the way.
There are many benefits of using bitcoin over traditional banking methods, I’ll discuss some of these in detail later on in this article but here’s a shortlist of reasons why you might want to start using bitcoin:
- No high transaction fees when sending money across borders
Bitcoin transactions typically cost lower when transferring value across international borders.
- No middlemen taking their cut when accepting payment
This opens up new markets for business owners who are looking to sell their products globally, without having to pay hefty fees for accepting credit cards.
- No long waiting periods
With traditional banking methods, it takes several days for funds to be available in your account; with bitcoin, you will receive your money almost instantly!
- Lower risk of identity theft
Credit card fraud is on the rise and merchants are constantly held accountable by banks & credit cards if fraudulent charges occur.
Since bitcoins are transferred peer-to-peer (meaning transactions take place between users directly), this removes the need for storing personal information which decreases the chance of identity theft/fraud.
- Lower risk of payment reversal
This happens often when customers do not recognize or trust a charge they see on their statement, don’t have time to wait 7-10 days for banks to settle the dispute, and chargebacks to take place; if you want to avoid this headache simply stop accepting credit cards and accept bitcoin!
Now that we’ve covered some of the benefits of using cryptocurrencies let’s discuss who uses them and why.
Who uses cryptocurrency and why?
Cryptocurrencies like bitcoin are currently used by people who want to make peer-to-peer payments with little to no fees, access their money on the go, send secure transactions anonymously without middlemen or third parties such as banks involved, protect themselves from identity theft & fraud, safely save their wealth for long term investment rather than keeping it in a crumbling financial system.
There are many reasons why someone would prefer not to keep their savings in fiat currencies/banks:
- Currency controls by governments
This is happening right now in countries such as Argentina where president Kirchner has imposed strict limits on the amount of us dollars individuals can purchase, no doubt there will be more restrictions in currencies to come!
In countries experiencing inflation or hyperinflation people turn to cryptocurrencies for protection against the devaluation of their existing fiat currency.
China is another perfect example, the country’s central bank recently announced that it had injected nearly $80 billion worth of new funds into its economy by cutting interest rates on interbank loans this is after it did the same thing back in November of last year adding around $100 billion into its economy.
This comes after china’s GDP growth decelerated sharply to 6.9% (from 7.3%) in the fourth quarter of last year.
We all know what happened to Greece over the past few years, imagine being an individual living in a country with high inflation rates or experiencing currency controls and restrictions!
A great example is a hyperinflation currently ravaging venezuela which has lead many venezuelans to turn cryptocurrency mining into a lucrative business!
- High unemployment rates & underemployment
This is currently happening right now in countries such as italy, spain etc where more than half of young people are unemployed .
Cryptocurrencies allow anyone from any walk of life the ability to start their own business and become self-employed! Just ask these guys.
- Rising transaction fees & banking hours
Some people live in areas that don’t have easy access to banks or where there are long lines at branches or poor service, bitcoin allows you to send/receive money instantly 24/7 from anywhere in the world without having to deal with traditional financial institutions!
- Huge barrier-to-entry for the average person
There is a huge learning curve and steep entry cost for people interested in becoming involved in cryptocurrencies. You need to understand how blockchains work, how mining works etc which can be very confusing especially if you’re new! This leads us to our next point…
- Fear of volatility
Bitcoin’s value has been extremely volatile since its inception, there was a point where 1 btc would be worth around $30 and now a single coin is worth over $63000 USD.
This scares many people away from getting involved in cryptocurrencies as they can quickly lose 10-20% of their value overnight causing them to panic sell!
Remember that the cryptocurrency market is still very young and very volatile & that you should never invest more money than you are willing to lose.
It’s never too late to get started with bitcoin/cryptocurrencies
There have been many great articles written on this topic but i’ll summarize it for those who don’t have time to read them: if you had bought just $100 worth of bitcoins back in 2010 your investment would be worth around 75 million today if you’d cashed them out last year.
This is an excellent a-z of bitcoin that you can check out if you’re looking for more information on this topic.
Bitcoin is up over $63,000 usd. Established companies such as microsoft are accepting bitcoin for purchases. With so much volatility in the market, don’t invest more than what you’re willing to lose.
If interested in buying bitcoin and getting started on this journey into crypto-investing – we recommend coinbase where fees may be higher but processing times will guarantee quicker results without waiting days/weeks for transfers to process like traditional banks & financial institutions offer today.
like our Bitcoin price history article if the given information is useful for you.