What Is Bitcoin: Bitcoin Explained

What Is Bitcoin: Bitcoin Explained

Bitcoin is a cryptocurrency that most people are drawn to for investment purposes. The currency was introduced in 2009 and has hit great highs ever since then. Furthermore, while Bitcoin did drop in value over time, it regained its worth and has held itself at good values, which has motivated people to invest in it.

If you are trying to understand what is Bitcoin, then understand that it is a very popular cryptocurrency that has been bought and sold at many exchanges, introduced at many podiums, exchanged at different marketplaces, and has over time become a top choice amongst investors. It is popular and most investors want to get their hands on it because smaller amounts of the currency can help you regain greater returns from it.

Created by Satoshi Nakamoto, Bitcoin exchanges do not involve banks or intermediary bodies. The currency is traded on different exchanges. Today, you can use the currency to book hotels on Expedia, to shop for furniture on Overstock, and to buy games among other goods and services. You can also hold it for investment purposes.

What Is Bitcoin: Bitcoin Introduction

Furthermore, to understand what is Bitcoin, we understand that Bitcoin is a cryptocurrency that people invest in for investment purposes or to exchange goods and services. The currency increased in great worth after 2017 and today, settles above $11,000.

Furthermore, Bitcoins are also used to purchase merchandise. They are also used to make international payments because they are not tied to a specific region. They are also a suitable option for small businesses because they don’t involve transaction fees.  

Bitcoins are usually bought on exchanges. Amongst these exchanges is Coinbase where the cryptocurrency is bought and sold.

Essentially, cryptocurrencies are virtual currencies that use blockchain technology to track transactions through a bundle of networks linked together as a network of computers. They can be used as an alternative currency to purchase goods and services. However, most people buy it as an investment because they allow easy purchase and sale of goods. 

Bitcoin has had a major share amongst other cryptocurrencies in the market. Reports by Statista reveal that the cryptocurrency held 66% of the total market share in 2020. 

There are many advantages to having Bitcoin as a payment system. 

One, traders get access to peer-to-peer trading with Bitcoin and there are no interruptions from 3rd end parties such as banks or governments. There is also no sales tax involved in Bitcoin transactions. The fee involved in Bitcoin is also lower than standard wire transfers. 

Bitcoin Price: Overtime And Today

Since its introduction in the markets in 2009, Bitcoin has risen, fallen, increased, and decreased, only to stand at reasonably high values today.

The cryptocurrency hit record high values in 2017 when it reached close to $20,000. On the other hand, in 2020, Bitcoin today is standing at $11118.92, which is also remarkable. The currency is expected to go higher in the months to come which is making a lot of investors eye it at the moment.

There are about 18 million Bitcoins circulating across the globe. The global worth of all Bitcoins is about 118 billion USD.

Bitcoin price chart

Source: Statista

Bitcoin Price Chart: Understanding Bitcoin Price Overtime

To assess Bitcoin prices, a Bitcoin Price Chart can help.

Below is the Bitcoin market capitalization chart. 

According to the Bitcoin market capitalization chart below, Bitcoin held a market capitalization of over 80% in 2014, which means it was the only cryptocurrency dominating the markets by a greater proportion. Till 2017, the market capitalization had lesser variation. From 2017 onwards, Bitcoin’s market capitalization dropped to around 30%, rising to 50% in 2018, rising slowly in 2020 to now settling at 50% in September 2020. Bitcoin, therefore, is definitely worth your time and investment today.

Bitcoin price chart

Source: Researchgate.net

Bitcoin Price Value

Furthermore on Bitcoin price value this year, from January 2020 to September 2020, Bitcoin price rose from $7000 to now $11,000. These figures are staggering. According to estimates, it is predicted that Bitcoin’s value will rise in the years to come. Therefore, investors are counting on it as a solid choice of investment.

Bitcoin has risen in 2020 because money lost its value. The corona pandemic was one of the reasons why there was a drop in the worth of the cryptocurrency. However, Bitcoin still managed to regain strength.

Furthermore, estimates predict that Bitcoin’s value and worth will rise in the coming months. It is one of the top cryptocurrencies without a proper match today. Cryptocurrencies are definitely in and are being bought in great exchanges today; Bitcoin is at the top amidst all of them.

If you are looking to buy Bitcoin, the first step is to register yourself at a Bitcoin exchange. Coinbase is one of them. Other popular exchanges for trading Bitcoin include Robinhood, Square Cash, Binance, Coinbase Pro, and Coinmama.

Bitcoin was valued at $7,000. It shortly increased to $10,000, dropping to $5000-$6000 during March and April, rising to $12,000 between August to September and falling to almost $11,000 in September. Estimates reveal that Bitcoin's price may hit $300,000 in the next 5 years to come. Therefore, Bitcoin is a cryptocurrency that you should watch and prepare yourself to invest in if you are a top investor.

Bitcoin price chart

Source: Ycharts.com

References

https://www.statista.com/statistics/326707/bitcoin-price-index/

https://cointelegraph.com/bitcoin-price-index

https://www.investopedia.com/articles/forex/121815/bitcoins-price-history.asp

https://money.cnn.com/infographic/technology/what-is-bitcoin/index.html

https://freebitco.in/site/bitcoin/

https://cointelegraph.com/news/new-bitcoin-bull-run-whales-and-institutions-accumulating-data-shows

https://www.thebalance.com/best-places-to-buy-bitcoin-4170081

https://markets.businessinsider.com/currencies/btc-usd

https://www.statista.com/statistics/326707/bitcoin-price-index/

Comments 1

Erick Kalean
Erick Kalean 24 September 2020 16:45
I want to share with you this excellent opportunity to invest in Cryptocurrency and learn more about his great new field.

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