Bitcoins Rise to Prominence and Price History

What You Should Know About Bitcoin & Cryptocurrency

According to Wikipedia this is the definition of Bitcoin -Bitcoin is a cryptocurrency, a digital asset designed to work as a medium of exchange that uses cryptography to control its creation and management, rather than relying on central authorities.[1] The presumed pseudonymous Satoshi Nakamoto integrated many existing ideas from the cypherpunk community when creating bitcoin
Cryptocurrencies are said to be virtual currencies, which is a digital means of exchange invented by programmers to directly compete with fiat or paper money. Cryptocurrency such as Bitcoin are intended to be de-centralized meaning they are not controlled by an individual, government or company but a freer form of asset with no counter party risk or debt attached to it. What makes Cryptocurrency maintain or increase in value? Most cryptocurrencies such as Bitcoin have a maximum number of coins which will ever be produced. Bitcoin is capped at 21 Million coins for the life of the coin which is a very finite limited amount, which runs counter to the money printing of Governments who hyper inflate their monetary base and put at risk the public who count on sound money and economic policy. As more citizens fear inflation or hyper inflation we will see more people flock to cryptocurrency as a safe haven or alternative to the Dollar, Yuan or Yen for example. The other thing that makes Bitcoin keeps its value is the perception that it is a store of value and most people who have the choice to sell or keep their bitcoin would rather keep it for higher values in the future. Bitcoin is now being compared to Gold as a safe haven from Inflation or economic downturns. Bitcoin is accepted as currency by many retailers and anyone who has a bitcoin address can send and receive bitcoin in a peer to peer fashion between to cell phones or computer to computer.

 

Since governments around the world do not currently have any laws restricting cryptocurrency, they are considered alternative currencies, a financial transaction which exists outside the bounds of the monetary policy of the nation. Laws are now being talked about as politicians finally realize that Cryptocurrencies are not going away anytime soon! In China the government has shutdown exchanges in China that buy and sell crypto’s as well as banned ICO’S or Initial Coin Offerings to protect the general public form getting burned by any non regulated cryptocurrency that may indeed be a scam. In the United States the IRS is asking for the records of 14,355 Coinbase users who have bought or sold $20,000 or more through their accounts in a single year between 2013 and 2015. Coinbase estimates that 14,355 users meet these government’s requirements. Coinbase boasts nearly 6 million customers, but according to a government filing, fewer than 1,000 US citizens have reported cryptocurrency holdings on their taxes. Coinbase usage has been on the sharp incline, in November it is reported that Coinbase added about 36,000 users per day but by November the number of new users is closer to 100,000 per day as word of mouth and referrals spread. The announcement by CME that it plans to launch Bitcoin futures has resulted in a sharp spike in interest across the world. Coinbase, the world’s largest Bitcoin exchange, has bitcoin coinbaseadded 100,000 new users in the 24 hours since this huge announcement was finally made public. Coinbase currently only sells Bitcoin, Ethereum and Litecoin but says it will add new coins in 2018, if you can predict which new coins will hit Coinbase you could make yourself very rich as this has an extremely positive effect on the price of the coins being that Coinbase is the easiest way for beginners to buy Bitcoin, Ethereum or Litecoin.

What is Cryptocurrency?
Cryptocurrencies make use of a cryptographic system or extremely complex code systems that encrypt essential data transfers to guard their exchange units. Cryptocurrency creators build this system on advanced mathematics principle and computer engineering that make them practically impossible to crack and thus reproduce or fake the protected currencies. This method also protects the identities of cryptocurrency users, making transactions and fund flows challenging to assign to specific individuals or groups. Regarding the decentralized cryptocurrency, corporations or governments cannot create new coins, and they haven’t provided support to other businesses, banks or entities that hold an asset coins. The main technical system underlying the decentralized cryptocurrencies has been designed by the group or expert individual known as Satoshi Nakamoto, although this is still up for debate as know one can verify this as this is more likely an alias has he has never stepped into the public light.
Cryptocurrency background
In 1998, Wei Dai wrote a summary of b-money, an unknown and distributed virtual money system. Soon after, Nick Szabo created Small Gold. Like bitcoin and other cryptocurrencies that would require that after it bit gold (not to be confused with the last gold exchange, Bit Gold) was known as an electronic money system that required users to perform a proof-of-Concept identity, this work with cryptographically made and published solutions. A currency system based on practical proof was then created by Hal Finney who followed the publication of Dai and Szabo.

Did I Miss the Bitcoin Boat?
Bitcoin was introduced to the world in 2009, and became the first decentralized cryptocurrency, however Bitcoin was not traded on any exchanges in 2009. Bitcoins first recorded price was in 2010Bitcoin’s price never topped $1 in 2010! Its highest price for the year was just $0.39!
Since then, many cryptocurrencies have emerged, thousands really although some seem very viable and others a bit sketchy, (When researching coins do your due-diligence before you risk your money). Coins not named Bitcoin tend to be called Alt-coins, as an alternative to bitcoin. Bitcoin and other coins use decentralized systems which is one of the main reasons people are embracing the technology behind cryptocurrency. Below is a graph representing adoption of a product. Cryptocurrency is still in the Infancy as we are still in the early adopter stages. If you were in the Innovator stage you are probably a Millionaire by now. A s an experiment ask friends, family and co-workers if they own any Bitcoin? If less than 1 out of 10 own any this should confirm that we are still in the early adopter stage and you have not totally missed the boat.

EARLY BITCOIN ADOPTERThe main idea behind the creation of this virtual currency was to allow fast and cheap online payments without having to use traditional banking channels. Bitcoin grew in popularity when its price jumped from about the US $ 572.33 in August 2016 to about the US $ 4,764.87 in August 2017. At the end of November 2017, a bitcoin was worth almost $ 10,000, a total value of $ 150 billion to all bitcoins. 3 Million Active Cryptocurrency Users published by Cambridge Center for Alternative Finance. As of this article the current price of Bitcoin is $11,630, December 4th on Coinbase. Bitcoin is unpredictable and very volatile, that being said experts project Bitcoin being a great storer of value and thin it may hit 6 figures per coin in the not to distant future. My recommendations is to stop listening to the Fud (Fear, uncertainty and doubt) that the mainstream media and the uninformed keep spewing and dive into your own education on the subject and make an informed decision on whether or not to invest in Bitcoin, but don’t wait, everyday Bitcoin has the potential to skyrocket to new highs.

 

Here is a look at the Bitcoin Chart form 2011- To Late 2017, you can see the Parabolic increase that happened around June of 2017. Its been quite a roller coaster ride!

 

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Key Points in Bitcoins Price History

May 22, 2010 – Two Pizzas Are First Material Item Purchased Using Bitcoin – for a bout 10,000 Bitcoins, about $25 or about $0.0025 per coin.
July 18, 2010 – Mt. Gox opens and becomes the first exchange to actively trade Bitcoin.
February 9, 2011 – Bitcoin Price Hits $1.00 USD
June 1, 2011 – Gawker Publishes Article About The Silk Road and the price jumps for $9 to $17 in a little over a week.
June 19, 2011– Mt. Gox is Hacked and the prices falls to around $16.
February 11, 2012 – Paxum and Tradehill Drop Bitcoin and the Price falls to $4.31
November 15, 2012 – WordPress accepts Bitcoin, price over $12
March 11, 2013 – Bitcoin 0.8 Causes Brief Hard Fork, Bitcoin $69
March 25, 2013 – Cyprus Bail-In, Bitcoin $131
April 10, 2013 – Increased Trading Volume Breaks Mt. Gox – Price falls to 122.90 from $181
November18, 2013 -US Senate Holds Hearing On Bitcoin. Price goes crazy from $685 to
over $1,000
December 5, 2013 – Chinese Government Bans Financial Institutions From Using Bitcoin
The price drops to $839 from $1022.
February 24, 2014 Mt. Gox Closes -$662
January 4, 2015 Bitstamp Hacked – $198.59
January 26, 2015 – Coinbase Launches US Licensed Exchange $222.85
July 1, 2015 – 2 Federal Agents Plead Guilty to Silk Road Theft $291.66
October 8, 2015 – Gemini Exchange Launched – $268.01
July 9, 2016 – Second Halving Day – $674.03
August 2, 2016 – Bitfinex Hacked – $591.36
January 3, 2017 Bitcoin price breaks $1000 for the first time in 3 years – $1020.47
April 24 th 2017 – Crypto1123 Bought $100 worth of Bitcoin @ $1274.58
August 1, 2017 Bitcoin “splits” into Bitcoin (BTC) and Bitcoin Cash (BCH) – $2787.85
October 24th 2017 – The The Bitcoin Gold fork occurred after block 491,406 was mined. $5875
November 20th 2017 – Reaches $8,000
November 27th 2017 – Reaches $9,000

November 29th 2017 – Reaches $10,000
Dec 7th 2017 – $15,000 and counting…………WOW..
Bitcoin Futures will begin Dec 11th and 18th as price nears 20,000 on some exchanges!

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