Bitcoin is one of the most popular digital currencies in the world. However, the journey has been a long one. In 2008, a Bitcoin paper that described a form of the peer-to-peer decentralized network became a hot topic. That was the point Bitcoin was born. It was an unprecedented idea that promised fair and secure financial transactions and ultimately reduced the power of the government, central banks, and similar institutions.
Bitcoin offered so much hope in a world that had been plunged in uncertainty due to the global crisis initiated by financial deregulation. Over the years, the quality of Bitcoin as a store of value emerged as its market expanded. In 2009, $1 can buy over 1300 Bitcoins. Within 8 years, one Bitcoin would cross $10,000, which is an absurd rate of return. By 2018, its value was over $20,000 and as of the time of writing, one Bitcoin is valued at about $32,000.
What are the key factors that influence the price of Bitcoin?
The price of Bitcoin is controlled by the laws of demand and supply – just like every other valuable financial asset. The users will determine the Bitcoin price depending on its use and adoption. Another factor that influences Bitcoin’s value is media coverage. In most cases, the media finds it hard to understand new technologies. As a result, it has often received hostile acceptance from the media. Several articles predict the end of Bitcoin. In fact, some even view it as a transgression to the worldview and see it as a wrong idea. Yet, this media attention has only increased its popularity and raised the awareness of potential users to the network. This has, in turn, led to the increase in Bitcoin value.
Furthermore, regardless of how decentralized Bitcoin trading is, the power of governments across the globe should not be ignored. Over the years, many countries have imposed several regulations against the network, including taxation. However, regulations are not necessarily negative. In some cases, there are positive regulations that can act as a tool to authenticate Bitcoin as a mainstream financial asset, thereby leading to an increase in demand.
Besides these, its price can be dictated by what happens within its community. One of the reasons the price of Bitcoin rose rapidly during the COVID-19 pandemic can be linked to the halving that occurred in May 2020. Bitcoin halving is simply when the reward miners get for mining Bitcoin is halved. This effectively restricts the supply of Bitcoin as the incentive to mine is reduced. With limited supply, demand increases, and the price of Bitcoin increases as well.
How can you buy Bitcoin?
Several means are available for buying Bitcoin and being exposed to the exciting opportunities it provides. For instance, for a UK trader, they can find the right trading platform UK that ensure that investors can purchase Bitcoin via credit, debit cards, or bank transfers. Initially, you could only buy Bitcoin via exchanges, yet its evolution has attracted interest from enthusiasts worldwide. Anytime you wish to purchase Bitcoin through exchanges, you will open a safe crypto wallet.
Additionally, several peer-to-peer exchange sites are available for people to trade Bitcoin for cash among one another. The fact that people can use local methods of payment easily has enabled these sites to grow in popularity. These peer-to-peer Bitcoin trading sites usually provide the coin at premium prices and they are easy to use. Many Bitcoin ATMs imitate conventional ATMs, yet are not in any way connected to a bank, but instead, are linked to a Bitcoin wallet.
The Bitcoin market has grown since its inception and its price keeps increasing rapidly. In fact, Bitcoin has been predicted to be worth more than Gold at some point. Its value and market promise to keep expanding. This makes trading Bitcoin a wise choice.