In October of 2008, the groundwork was laid for a decentralized digital currency by someone named Satoshi Nakamoto. This digital currency is what we now know as Bitcoin. Done in the middle of a global financial crisis, the options for alternative financial solutions were very slim, and people looked at technology as a possible solution. It can be argued that cryptocurrency was born from this necessity. Within the next six months, several blocks had been made for miners to test the algorithms of the trading systems. The following year not only saw Bitcoin publicly offered but also saw it used to buy two boxes of pizza, proving that it can have usability if deemed viable.
This pizza transaction was huge for Bitcoin and the other cryptocurrencies created to improve what Bitcoin had started. Bitcoin reached the $1 mark shortly after, showing just how quickly the digital currency was rising. In 2013, the price of Bitcoin went from $200 by the end of the first quarter to $1000 by the end of the year. Fast forward to today, Bitcoin is now priced at around $34,000 each and still seeing rises each day, according to the financial experts at CNBC.com. While there were drops here and there, the general growth trajectory has still been upwards. After over a decade of constant growth, how does Bitcoin maintain this?
As the experts observed, the price of Bitcoin sees spikes after certain events. These events may be directly related to cryptocurrency or a general world event that affects global finances. Bitcoin is the top cryptocurrency, and this is why the movement of all the others (cryptocurrencies) will most likely affect the price of Bitcoin. With most Altcoins being created with their main selling point of improving on Bitcoin’s issues and faults, it is no surprise that there would be drops in Bitcoin’s price.
The 2020 COVID-19 pandemic helped market cryptocurrency as a safe and contactless investment. Bitcoin was one of the first to benefit from this. The pandemic gave digital currencies more viability through acceptance. Bitcoin, along with other cryptocurrencies, has been given more recognition and usability around the world. This helped raise the price of Bitcoin, with several people wanting to use the world’s top cryptocurrency as a way to help those areas badly affected by the COVID-19 pandemic.
Industry improvements are a crucial factor in the fluctuation of Bitcoin’s price. Tech and finance are the two most affected by cryptocurrency’s possible success or failures. After Tesla CEO and philanthropist Elon Musk showed interest in selling his company’s Bitcoin holdings, the price of the world’s top cryptocurrency went down by quite a decent amount. This, however, also works the other way around. Major tech and finance improvements also help Bitcoin’s price by improving its viability through its products.
The release of crypto-ATMs has also raised the interest in cryptocurrencies. Having such a high USD conversion rate, Bitcoin ATMs allow traders to convert crypto to cash instantly. Showing again just how usable cryptocurrency is today. This model is slowly becoming a norm in more developed countries and is branching out, providing a good reason for more people to invest in cryptocurrency and raise Bitcoin and Altcoins’ profile.
Bitcoin had a significant head start as a pioneer for the cryptocurrency trend, and this has helped maintain its status as the top cryptocurrency. Having more time to be integrated into society, Bitcoin has been able to find enough inventors to now branch fully into becoming accepted as the primary payment method for several kinds of transactions worldwide. Helped by decade-defining financial and social events, it seems like the timing and circumstances have been perfect for Bitcoin to thrive. Bitcoin has shown that cryptocurrency is characteristically volatile. The potential loss is very much equal to the potential gain. However, with every drop in price, the increase has an equal chance to follow. It will be interesting to see if a cryptocurrency will come close to challenging Bitcoins top spot.