The Meteroic Rise of Bitcoin
If you‘ve heard anything about Bitcoin lately on the news, you’ve probably heard of its insane rise in value over the past few months. Bitcoin was first released in 2009, and promised to be a completely decentralized currency, free from government regulation and intrusion. Known as a cryptocurrency, it allows people to send digital currency to each other with complete anonymity. At its birth, Bitcoin held little to no value when compared to the US dollar. However, in the past month, it has risen over 1600% in trading value, and is currently trading for $16,341.75. With the incredible raise in price, experts are beginning to predict this new wild west of investing is turning into the next dangerous bubble.
The thing you have to understand about trading Bitcoin is that the market never closes, meaning prices can rise or fall at any time of the day. Due to the volatility of trading Bitcoin, investors have seen their investments explode in value literally overnight, then take a dip in value within an hour. Despite this, investors are pouring their money into Bitcoin, due to the high rewards given in such a relatively short amount of time.
As of today, the price of a single Bitcoin is $16,518.23, a change from yesterday’s $16,213.89. Yesterday, the highest price reached was $17,569. The incredible volatility of this currency worries many investors who are hesitant to get involved. It is being called a “speculative mania” by some, warning that this bubble could burst at any moment. Despite this ominous warning from many, no one believed it would have risen to such an astronomical price 5 years ago, let alone 6 months ago. All warnings that Bitcoin is a bubble just ready to burst have continually been proven wrong.
In fact, Bitcoin is making many people very rich. People who were early adopters of this technology bought when Bitcoin was extremely low, not even thinking it would become as valuable as it is. Now, with the rise in value, it has created a new wave of millionaire investors. Casual investors who purchased several bitcoins a few years ago are now sitting on a considerable amount of money. It has now become common for many investors to add bitcoin investments to their portfolios.
So should you be considering investing some of your money into Bitcoin? Well, it’s hard to tell. The extreme volatility of this market makes it difficult to say for certain whether it is for everyone. However, the technology behind Bitcoin, called blockchain, is said by many technology experts to be the thing of the future. It is predicted to become widely used among all types of industry, and essentially change the banking industry as a whole. While I can’t recommend whether you invest, the potential of this market is seemingly limitless.
The rise of Bitcoin could potentially be the next big thing, and there is still time to get in on the ground floor. Just be sure to do your research and understand the risks involved. To better understand Bitcoin, and investing in cryptocurrencies, check out this website for more information.