The biggest year on record for Bitcoin. started off at $ and ended the year at a high of over $ - a massive growth for the currency. In January of the year, the price surged to $1, - for the first time in three years. A Bitcoin wallet can be a lot safer than a bank account. Cypriots learnt this the hard way when their savings were confiscated in early This event was reported as causing a price surge, as savers rethought the relative risks of banks versus Bitcoin.. The next domino to fall was Greece, where strict capital controls were imposed in Dec 17, · Early Trading: Bitcoin History Bitcoin really started to take off in The digital currency began the year trading at around $ per bitcoin. The price rallied in .
Bitcoin trade value historyComplete Bitcoin Price History Chart with Market Cap & Trade Volume
Jan 06, Jan 05, Jan 04, Jan 03, Jan 02, Jan 01, Dec 31, Dec 30, Dec 29, Dec 28, Dec 27, Dec 26, Dec 25, Dec 24, Dec 23, Dec 22, Dec 21, Dec 20, Dec 19, Dec 18, Dec 17, Dec 16, Dec 15, Dec 14, Dec 13, Dec 12, Dec 11, Dec 10, Dec 09, Dec 08, Dec 07, Dec 06, Dec 05, Dec 04, Dec 03, Dec 02, Dec 01, Nov 30, Nov 29, Nov 28, Nov 27, Nov 26, Nov 25, Nov 24, Nov 23, Nov 22, Nov 21, Nov 20, Nov 19, Nov 18, Nov 17, Nov 16, Nov 15, Nov 14, Nov 13, Nov 12, Nov 11, Demand: Demand and Supply are the two basic concepts that govern the price of any commodity.
It is the same for Bitcoin too. The higher the demand of the currency, the higher its price will be because of the limited supply. However, while people continue to invest in Bitcoins all the time - the demand for Bitcoins starts to rise as the price falls. This elastic nature of Bitcoin means that the currency is always in demand. Supply: Bitcoin, in many aspects, is similar to gold.
Like gold, which is an exhaustive precious metal available only in a limited quantity - Bitcoin too, is limited. Only 21 Million Bitcoins will ever exist. This aspect of scarcity and rarity of the currency gives it value.
Out of these 21 Million, Satoshi Nakamoto, the anonymous creator of Bitcoins holds 4. Flaws in Existing Banking Systems: The existing banking systems are a centralized concept, governed by a centralized governing body. These banking systems can be slow and often charge a high amount of fees too. However, when it comes to cryptocurrencies, there is no centralized authority that governs the transactions - it is instead a decentralized and distributed system based on an open ledger.
The transactions are faster as well as cheaper compared to bank charges. Moreover, sometimes banks impose unfair embargos upon businesses or individuals. Cryptocurrencies help bypass this kind of a blockade. However, this also has a negative aspect to it because it then means that sometimes cryptocurrencies can also be used to make illegal purchases the likes of which have been noticed over the darknet in the past.
Economic Crisis: In some countries, the fiat money might not be as reliable. This is often the case in third world nations where corruption is rampant and in war-torn countries where there is no proper banking system. In countries where currencies are devalued, cryptocurrencies are of great help. The simple answer to this question is yes. The price of Bitcoin can be manipulated - but only to a certain extent. As explained above, Bitcoin is similar to gold in its pricing.
People who own large quantities of Bitcoin hold a larger degree of control over the prices. Once a price fall begins, many people begin to sell off their holdings fearing a bigger crash. As more and more people begin to panic sell their holdings, the price begins to fall - this is a chain reaction which continues till all the panic sellers have sold off their holdings to avoid a loss or to avoid bigger losses.
Price manipulation such as this is quite common in the cryptocurrency world. Apart from whales triggering such kind of a reaction in the markets, sometimes incidents such as exchanges being hacked also cause a similar crash in the prices.
There have also been multiple allegations of insider trading in some exchanges. Basically, price manipulation is not extremely common - but it is not unheard of either. Join our mailing list to get regular Blockchain and Cryptocurrency updates. No thanks. We strive to help our readers gain valuable, trusted insights through in-depth analysis, high-quality and well-researched News stories and views from the digital currency community experts.
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