Bitcoin explained: Its history, why is it so valuable, and will the bubble burst? 10,000, 2017 has seen this cryptocurrency go stratospheric. This looks far from being a digital fad, and many who invested several years ago are on the brink of being millionaires. So here’s a quick guide to the currency, how much is a bitcoin worth it’s all the rage, and whether the bitcoin bubble will burst.
Bitcoin first went online in 2009 as open-source technology, invented by a mysterious, anonymous individual going by the pseudonym Satoshi Nakamoto. It’s a digital currency, used to pay for items online without any additional bank charges, or government control. Companies and people can buy or sell items using bitcoin as payment. A maximum 21 million bitcoins can be created. As of June 1 2017, there were 16,366,275 in circulation.
It is expected to hit 21 million by 2140. Its price can be followed here. 500-1000 mark for the next four years. In 2017, Bitcoin’s situation changed significantly.
Its price had doubled by May, and again by August. By November, it was worth close to ten times its value in January 2017. 11,000 for the first time on November 29 2017. Regulators are imposing fewer restrictions on the cryptocurrency. Major financial institutions are beginning to view bitcoin as a legitimate currency, and not as some Ponzi scheme, and this is contributing to the spike in price. 2017 is the year bitcoin went stratospheric. Many are comparing bitcoin’s rise to the transition from gold to paper money.
Banks and institutions simply aren’t used to it, which is why they remain so suspicious. Remember, it was also invented by an unknown who goes under an alias, and the cryptocurrency is hard to trace. 31m theft, which led to bitcoin’s prices temporarily plummeting. Bitcoin also has an association with the black market and the dark web.