Hi guys, today in this article, we are going to discuss why is Bitcoin known as having all-time high prices. So keep reading.
Although would not be wrong to claim that bitcoin’s virtual asset is volatile and that its price is always going up and down. In fact, you can easily say that BTC is not almost always at its best price. This is the primary takeaway from the previous sentences. However, why is it the case? You must thoroughly follow the remainder of the blog to get expertise on this subject.
However, before giving the appropriate answers to the question “why is bitcoin said to always be at its all-time high price,” it is essential first to know about the cryptocurrency well. Hence, if you are in a dilemma on why people go crazy after bitcoins or why its price is at an all-time high in the market and want to know the possible reasons, then the following article will help you get over all the confusion and start taking interest in the highly praised digital currencies.
Brief Knowledge of Bitcoin:
The first cryptocurrency, bitcoin which is a digital Blockchain-based system was first created in 2008, but it wasn’t until 2009 that it gained widespread awareness since it was launched.
Even though many people have heard of the term “Bitcoin” or “BTC” at some point in their lives; most people do not know anything about cryptocurrencies. Despite this, bitcoin has earned the nickname “the ride of the roller coaster” because they have been the most widely discussed subject ever since its inception in 2009. After that, cryptocurrencies just started becoming mainstream in 2017.
The Vital Thing To Know About Bitcoin:
Bitcoin’s unidentified developer(s) have adopted the moniker Satoshi Nakamoto for their work. Bitcoin is digital money. Even though the name Satoshi Nakamoto is commonly spoken in connection with Bitcoin, the authenticity of the individual who goes by that name has never been established. Many people are under the impression that it is a pseudonym for an individual or group of persons who each have their own identity.
The Unpredictability of The Price of Bitcoins:
There is no way to disagree with the fact that the cryptocurrency bitcoin is extensively volatile. For instance, the value of Bitcoin reached an all-time high of around $64,000 in the first half of 2021, quadrupling from its previous level. But, after that, the price dropped less than $30,000 once again throughout the summer. The cost of Bitcoin again increased in November 2021; reaching a new all-time high of over $68,000 before it again crushed down to below $35,000 in January 2022. Now, as of November, 2022 bitcoin’s price has dropped to around $20,000.
This is only one example among many. Bitcoin’s price changes as frequently as multiple times in a day. Since its debut in 2009, the price of bitcoin has seen a fantastic roller coaster ride; with numerous significant price drops along the way.
Do You Know The Consideration That Influences The Cost of It?
The main cause of bitcoin’s price fluctuation is its changing supply-demand ratio. Cryptocurrency exchanges drive a combination of supply and demand for the coin. The only problem is that it’s possible that some of the transactions for millions of dollars that take place every day using bitcoin aren’t transactions at all. Research indicates that the bitcoin market is riddled with wash trading; a kind of market manipulation in which a party artificially buys and sells the same item to inflate the number of transactional activities.
Is Bitcoin Lucrative Despite Its Extraordinary Volatility?
Bitcoin poses a threat owing to several causes, one of which is its extreme volatility. However, we can’t dispute the fact that high volatility assists us in generating significant returns. You have, however, made the right choice if you are comfortable with taking chances and who is knowledgeable about investing. Several users suggested putting money into Cryptocurrency, especially Bitcoin and Ethereum. These are well-known cryptocurrencies. You may make money by taking advantage of the network effect. And, the fact is the amount of money being invested in bitcoin is growing day by day.
High levels of volatility characterize the market for cryptocurrencies due to the presence of several different factors. Despite this, it is lucrative since it does not affect the government and has several additional benefits like anonymity, transparency, and a more significant return on investment.