The rise of Bitcoin is one of the most interesting financial stories ever witnessed. Its difficult to imagine that in just over 8 years, Bitcoin has gone from being valueless to, at times, holding a higher value than gold.
But it’s not been plain sailing to reach this point. While Bitcoin has made lots of people great sums of money, there are winners and losers to the story. Bitcoin is volatile in nature. Prices can shift at very short notice, meaning value can be wiped off of Bitcoin reserves in a blink of an eye.
Every time Bitcoin breaks into the news, whether that be due to hitting new heights, or losing value, it earns new followers. It also wins back earlier adopters who dabbled in Bitcoin, but then forgot about the coins they own.
It is thought that up to 30% of all Bitcoin in existence may actually belong to lost accounts. In theory, this will be driving the cost of Bitcoin up even further. Only a finite amount of Bitcoins can ever be mined. If a large portion of them are destined to be out of circulation indefinitely, this reduces the supply of Bitcoin. In theory, the lower the supply, the higher the price.
However, despite all of the ups and downs, the price history of Bitcoin has largely been positive. There have been periods when the value of the cryptocurrency varied massively, and at times, nosedived. Throughout 2014 - 2015, the value of Bitcoin seriously struggled. However, the digital currency has stood up to its critics and proven resilient, bouncing back each time. For the time being, the price of Bitcoin appears to be stable. It is still trading well over $1,000.
Will Bitcoin go through another bubble? Well, history tells us it probably will. Plenty of them can seen throughout its lifetime, and it would be foolish to think that now is any different - but no one can be certain.
And that’s the beauty of Bitcoin. As a currency, it’s so receptive to news, media, and industry developments. The right story can make or break its value, sending it soaring to new heights, or crashing to frustrating lows. Yet, this doesn’t stop people trading and investing. And why would it? Bitcoin has already proven itself capable of weathering a storm. Many thought the cryptocurrency wouldn’t make it this far, but it has, and it’s still surprising people.
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