Guest Post

How Bitcoin Became Expensive?

When we plan to invest in cryptocurrency, we have to look back for the reasons and steps involved in the journey of Bitcoins price rally over the past years. It happened for the first time in the history of cryptocurrency that Bitcoins and other Crypto coins took the world by storm. The scenario was so blasting that everybody wanted to be a part of it.

Whether you are already in touch with cryptocurrency or planning to get into this game it is quite obvious that you will be curious to know how much the crypto coins would value for you when you convert them to your currency of choice. You would also be interested to know the tricks and strategies to hold or sell these coins in getting little profit in the process.

For every beginner in the cryptocurrency market, the proper analysis of the price charts and understanding trading terms would be confusing. So here we are letting you know the whole scenario of the price movement of cryptocurrencies and help you understand how to go about investing in them, especially Bitcoin. For more information visit trade Bitcoin.

The Discovery Phase (2009-2010)

In the year 2009  Bitcoin was not traded on any exchange. Its first recorded price is found in the year 2010.  Bitcoin was valued at $0 in 2009. During this first year of introduction and until 2010 its price never touched the threshold of $1. So the highest price for the year 2010 for Bitcoin was just $0.39.

The Acceptance Phase (2011-2016)

In 2011 Bitcoin started to gain perceptions. It achieved parity with the dollar on the Mt Gox exchange in February 2011. So at this point  Bitcoin experienced the top of the first bubble reaching the value of $31  followed by its first major price drop.  As we see that  Bitcoin dropped to the price value of $ 2  by December 2011 eating away more than 95% of its value. This was a high time to make improved steps to make Bitcoin valuable.

But unfortunately, none of these ideas were implemented. Rather some traders brought forward their projects and altcoins in the market. We know that altcoins are cryptocurrencies other than Bitcoin. Most of them are the forks of Bitcoin having little changes. Other coins like Ripple, litecoin, primecoin, and namecoin were also introduced.

At this point of the time, we noticed that Bitcoin’s price started to rise at a consistent level in December 2011 to a high of  $1,242 in November 2013. It faced a fall in price reaching $ 750 by November 2016. This resulted in extreme volatility at multiple sport levels.

We can also see that Bitcoins value touched the height of $150-$200  in October 2013  and rose $ 1242 in November 2013. After this rise, the price crashed to $ 600 mounting bouncing back to $1,000 level and crashing again to $500   in the little period of just two months. 

The meteoric rise (2017)

It is to be noted that even the most inexperienced trader of digital currency would notice that  2017 was a big year related to price movement. Bitcoin was the center of attention for new investors enjoying an incredible rise from$900 in January 2017 to $20000 by December 2017. Comparatively the price of ethereum grew by over  9000 % in the year 2017.

So in this way, the market value of ethereum increased 64- fold from $700 million to $45billion. So obviously it became the best performing cryptocurrency in the market. It started its journey at $8 in January. But surprisingly enough there touched a high rate of $450 by the end of the year. 

At the same time, we notice that Ripple which at the start of the year was at $0.0063  and it ended up at $ 1. the cryptocurrency world particularly took notice of these drastic changes in 2017 and initiated it to consider cryptocurrencies as an asset class which is quite difficult to be ignored. 

The sustenance phase (2018)

At the beginning of this year. Every crypto trader has started to be concerned about the sustainability of cryptocurrencies and their usage. It was intended to work as a  new and digital way to transact. Bitcoin and other cryptocurrencies have emerged in the current scenario as a form of an asset class.

Bitcoins will indeed continue facing high volatility for multiple reasons. But at the same time, the market participants will also continue to search for real use cases of the much-hyped blockchain technology and the related role of cryptocurrencies to power this technology

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Guest Author

Crypto Journalist and Editor of guest articles in CoinPedia. Also, Outreach & Partnerships Manager. Contact me: [email protected]

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