Everyone is going crazy about Bitcoin
Since it was launched in 2009, bitcoin has seen its value grow on yearly basis. As at 2013, the value had risen to $12. As much as the figure was steadily rising, it was not still in the limelight. Opening 2017 at a price of $999 it turned out that this was the biggest year for bitcoin closing the year at $13,800 as noted here. That’s a 1281% increase during one year. The rise in prices on bitcoin has seen growth for other cryptocurrencies.
Mixed reactions from different crypto analysts.
There have been a lot of speculations about the bitcoin and the supernormal rise in prices. According to some experts, it looks more like a bubble that is about to burst. This feeling was felt on after South Korea announced a crackdown on trades after the prices hit $19,000 mark. It saw a fall of around 12,000. Also, when China banned the raising of funds through the use of digital currency in the early September 2017.
However, according to an interview conducted by Australian Broadcasting Corporation, Mr. Pott, a bitcoin expert, says that it might just be a price discovery but not a bubble. As much as there is a high volatility there is a long term bitcoin growth. As noted by Tenx, founder, Julian Hosp the bitcoin price may hit the $60,000 mark and it might drop to $1,000. However, it is not clear what will come first but the two are big possibilities.
Why has bitcoin gained so much hype?
As the saying goes, success has many fathers but failure seems like an orphan. Likewise, when the bitcoin prices started to rise from the beginning of 2017, there has been a lot of talk revolving around it. As a matter of fact, when you mention cryptocurrency, bitcoin is the first thing that comes to mind. The three major things that have brought about the big hype for bitcoin is the media, online social platforms, and it’s ever increasing prices. Since it was launched, 2017 recorded the highest number of people mining it.
Everyone wants to be a part of the bitcoin success even if it means owning just 0.0001 bitcoin share. With speculations of getting to over $60,000, it attracts more investors. As much as the prices have gone up as compared to how they were a year ago, cryptocurrency experts advise that if you want to buy bitcoin, this is the right time.
Another reason why people are going crazy about bitcoin is the fact that one can bet on the futures and as the rule of demand and supply says, as the demand for bitcoin goes high, the supply is going down thus the prices keep on rising. Cryptocurrencies are known to be very volatile and when buying bitcoin, experts advise that you ought to invest wisely and responsibly.
It is also important to ensure that you are updated with the current bitcoin news. It helps you to know when to take a necessary step in mining, selling, and buying.