Highest Price Ever
After a remarkable 2017, reaching an all-time high of $20,000, Bitcoin had a cruel start to 2018 falling down $6,000 at one point. The most dominant cryptocurrency made many investors billionaires when the price increased from $800 to almost $20,000 in 2017.
Uses of Bitcoin
Countries that have embraced Bitcoin as a legal tender are Japan, Korea, Australia and Singapore, to name a few. They can buy groceries, clothes, pay for services just like with the regular fiat currency. Bitcoin is digital, it can only be accessed online and cannot be carried around in your physical wallet. It is decentralized, meaning it is not controlled by any central bank or the government. Transactions all go through the blockchain, an online ledger that records all transactions done with Bitcoin. Each Bitcoin has a hexadecimal code which makes it hard for hackers to steal credit card information, and Bitcoin transactions are irreversible unlike credit cards used in fraudulent activities.
The Price of Bitcoin
How much is Bitcoin right now? Well, the answer to that question depends on the time of time in which you ask the question, because every minute the market price changes, and the market is open 24/7. As of May 1, 4:30 AM UTC, Bitcoin’s market cap is $153,065,107,884 (153B) and the circulating supply is 17,008,387 (17.0M) which makes the price $9,000 per Bitcoin.
There are many reasons behind the high price but once of the most obvious reason is the high demand for Bitcoin (i.e. there are people willing to buy 1 Bitcoin for $9,000 so that’s the current market price). The price can go even higher or it can fall to zero, Bitcoin’s price is based upon the community’s perception of value.
This is why CEO Warren Buffett has strongly advised against Bitcoin and other cryptocurrencies. He considers them as “dangerous” investments because they are subject to major fluctuations and has no real intrinsic value.
A decade from now, the price of Bitcoin could go to $500,000 (as some have predicted) or it could become zero as people’s attention are focused towards the actual technology behind Bitcoin, the blockchain. In other words, Bitcoin may be the leading cryptocurrency today but the future is bright for less popular coins that can learn from Bitcoin’s mistakes and provide more flexible and scalable blockchain systems. The future of Bitcoin and its price is uncertain and impossible to predict. But one thing is certain: blockchain technology is revolutionary and will change the lives of millions in years to come.