Bitcoin: A New Age Money

Written by Kevin, The Bitcoin Guru
Aug 16, 2018

In 2008, Satoshi Nakamoto created the Bitcoin and released it in January 2009 as an open source of software to be mined by people. He himself mined at least 1 million Bitcoin and disappeared in 2010. He had given the control of the repository in the hands of Gavin Andresen. The Bitcoin Foundation was created to take care of the whole process and Gavin Andresen became the lead developer of Bitcoin. Initially, the price of one Bitcoin was $0.30 and gradually it gained momentum and had even reached $19,666 per Bitcoin in December 2017.

What do We Know About The Volatile Nature of Bitcoin

Bitcoin is a virtual currency and it is based on decentralized ownership and control. There is no single administrative organization to run the whole program and it doesn't have government backing. Due to this reason, the price fluctuation of the Bitcoin is a natural process which is driven by demand and supply factor in the market. As said above the price of a single Bitcoin was started at $0.30 and with time the price has been on the fluctuation. In 2018 the price of Bitcoin has fluctuated in between $11,000 and $5000 per Bitcoin. The reason like no backing from the government and theft cases from trading centres have been the reason for this kind of price fluctuation. 

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The price volatility has remained the integral feature since the release of Bitcoin in 2008. In 2011 the price reached $31.50 in June and suddenly within a month the price fell down to $11.00 and ended at $4.77 by the end of 2011. In 2012, the price again started to rise to reach the highest price at $13.30 which was very low in comparison to the previous year. The price of each Bitcoin has even fallen by around 50% in 16 days period in the same year. This shows the volatile nature of Bitcoin very clearly. The same year the Bitcoin Foundation was established to look into the whole structure and price volatility of Bitcoin.

The Major Bitcoin Events Recently Happened

The major boost in the price of Bitcoin came in the next two years, specifically in January 2014 when every single Bitcoin was valued at $770. Meanwhile, there were major incidents that took place in relation to Bitcoin. The US Drug Administration for the first time seized Bitcoin assets and due to that, the price crashed down by 50%. Whereas, next year China prohibited its own financial institutions like the central bank to transact in Bitcoin. The other major reason for the price fall down in the year 2014 was the theft of around 850,000 Bitcoin from trading giant Mt. Gox. This incident again jolted the market and the price of Bitcoin at $867 fell down to $439 (fall down by 49%).

In 2017, the price of every single Bitcoin created a benchmark for itself by reaching $13,412 from $998. The next month it reached the highest of all time i.e. $19,666 and shortly fell by 70% reaching to around near $5000. The price of each bitcoin as of 1st July was $6,469.

What are The Possible Uses of Bitcoin

The Bitcoin can be obtained through mining, purchasing and trading. The whole network of Bitcoin is run synchronized. Every computer running particular software is known as the node or full node (with a slight difference) and the software used in them is called client or implementations. The first implementation was Bitcoin created by Satoshi and currently, its advanced version is "Bitcoin core" which can be used by everyone if they want to mine Bitcoin.

Some of the others implementations that can be used by everyone are:

  • Airbitz
  • Blocktrail
  • Green Address
  • Mycelium

The Bitcoin has definitely revolutionized the world with its decentralized, safe transaction process. The prices of Bitcoin are on the continuous rise from 2014 and it has brought fortune to its owners. Some of the nations have not given it a legal status but its popularity among people has made it the nonofficial virtual currency of the world. People can also use Bitcoin to shop online and checkout with cryptocurrency as they would pay with fiat currencies.