Bitcoin Prices
History of Bitcoin Price
Bitcoin is a popular digital currency originally created in 2009 by Satoshi Nakamoto, an unverified figure whose identity remains elusive. There has been much discussion as to the possibility that ‘Mr. Nakamoto’ is actually a European collective of web developer activists, but this claim remains unproven.
The origin of Bitcoin can be traced to August 18th, 2008, when the domain name Bitcoin.org was created. In November of 2008, Mr. Nakamoto sent an article about peer-to-peer electronic cash systems to an email list of coder activists, indicating his deep knowledge of cryptocurrencies and evident desire to create his own. By January 2009 he had done just that, issuing the first sale of Bitcoins through the Bitcoin.org domain. Mr. Nakamoto himself mined the first block of Bitcoin, which was worth 50 coins, and soon other activist coders began mining and buying Bitcoin as well.
Bitcoin is different than traditional currencies because it has no central bank or regulatory body organizing it and setting terms of use. Holders of Bitcoin can mine for it from the comfort of their own home – all you need is a strong power connection. The current Bitcoin price indicates this cryptocurrency has spawned a whole new structure of economic transactions which promises to change the way people do their banking – all within the last decade.
The Bitcoin price remained tremendously low for the first couple of years as a fun hobby investment for a small fringe of the investor and coder communities. To offer an impression of how unregulated and unknown the currency was at the time, in early transactions the value of Bitcoins was discussed openly in forums between traders. One of the earliest actual purchases with Bitcoin was for two pizzas from Papa John’s for a reported 10,000 BTC! Today it is possible to make much more lucrative investment decisions with your Bitcoin. Check the daily Bitcoin price to make sure you buy or sell at the right time and invest in a reliable commodity like gold or silver before the Bitcoin price potentially drops significantly again.
Origins: Bitcoin Price from 2009 to 2011
Due to the open source nature of the Bitcoin software, it was very easy for traders to start mining for Bitcoin themselves. It was the ease of integration that drove Bitcoin growth between 2009-11, when many users were involved in the coding community or had a vested interest in the cryptocurrency succeeding. In 2011, it was accepted by WikiLeaks as a form of payment and this catapulted Bitcoin price into the purview of stock market investors. It has never looked back.
Today the Bitcoin price currently sits over USD $10,000, although the path to such heights has been marked with obstacles. One of the most common obstacles with Bitcoin is dealing with vulnerability. Bitcoin has been quite susceptible to theft or security breaches, especially in the early years. This is partly because of its open source code and partly because of its reliance on anonymity.
For example, in 2010 there was a case in which payment transactions did not have to go through the regular economic restrictions put in place by the blockchain. Traders were suddenly able to create as many Bitcoins as they wanted! While the issue was cleared up within a few hours, it was not before millions of Bitcoins were created illegally and the legitimacy of a completely public ledger was compromised.
These cases have an immediately negative impact on Bitcoin price and it pulled people away from trusting the anonymous cryptocurrency. A recurring roadblock to achieving stable Bitcoin prices is the continual risk of a security breach.
More Ups and Downs: Bitcoin Price from 2011-2015
Despite these drawbacks, a quick glance at the Bitcoin price indicates it has only grown in popularity since 2010-11. Consider that in 2010 there were under 10,000 transactions/month, while in 2017 that number rose close to 10 million. Or the fact that the Bitcoin price was USD $0.08 cents in 2010, while in 2017 it clears over USD $10,000 at the moment.
Bitcoin prices have experienced incredible ups and downs since entering the stock market in 2010. Within one year of trading it hit parity with the USD. By July of 2011, it ballooned to USD $31, a huge surprise to investors and miners alike (who saw a great opportunity to cash in on their rogue investment). Sure enough, by December 2011, the Bitcoin price dropped to USD $2.
Did the Bitcoin price remain low from then on? If you have learned one thing about the Bitcoin price by this point, it’s that it follows no rhyme or rhythm. The Bitcoin price began to rise between 2011-2013, even reaching into the thousands before dropping once again.
What exactly was keeping the Bitcoin price from solidifying? A lot of things, but mainly a solid user base. From 2013 to 2016 Bitcoin prices began to solidify around a growing base of users. Prices hovered around USD $500 during these years, with no clear avenue for expansion in sight – until 2017 when the stock began its steady rise.
Based on this summary of Bitcoin price changes, it is clear how volatile the stock can be. Currently it is unclear just where the Bitcoin price will go in the next few years. That’s why you want to keep up to date with live Bitcoin prices by checking the trading rate at SilverGoldBull.ca.
At SilverGoldBull.ca we accept Bitcoin as a payment method for precious metals because we believe it will remain an important future currency. It’s wise to track the live Bitcoin price and convert the virtual Bitcoin price into solid material gold!
What Is a Cryptocurrency?
A cryptocurrency is a virtual currency that relies on cryptography as a means of security. Designed on a decentralized system without a regulating body overseeing transactions, the only way for a transaction to be approved is if all parties have access to every single recorded transaction along the chain of events.
Bitcoin is a cryptocurrency because it operates on the principle of transparency in its operations. Every record of a transaction is referred to as a ‘block’, and each block contains the information about the sender and receiver involved in the transaction. Every user engaged in Bitcoin mining or trading has access to every other transaction within the block. This is how the currency retains legitimacy: through transparency.
Here are a few defining features of a cryptocurrency:
No Intrinsic Value. Unlike gold (which has valuable physical properties outside of the marketplace), cryptocurrencies have no value in and of themselves. As a currency itself, the Bitcoin price only has value in relation to other currencies.
Finite Supply. There are 21 million Bitcoins that are potentially discoverable, with over 15 million already mined. A finite supply of Bitcoin means it is not possible for central banks or governments to arbitrarily print more money, thus devaluing the currency and increasing inflationary pressures. In this regard, it is similar to precious metals.
Totally Virtual and Relatively Anonymous. Cryptocurrencies like Bitcoin (and others) are all explicitly digital. They leave no paper trail and thus are not as easily regulated or controlled via a central body. When it comes to identification, Bitcoin is far more anonymous than a bank because users do not have to attach their name to transactions. Some other cryptocurrencies are even more anonymous than Bitcoin, but are not nearly as valuable. Keep up to date with the live Bitcoin price and when the time is right, cash it in for some precious metals at SilverGoldBull.ca today. It’s a great way to take advantage of the anonymity provided by Bitcoin trading.
Why Was Bitcoin Created?
Bitcoin was created in response to the financial crisis of 2008, when it became clear to Mr. Nakamoto and other activists that the global financial elite were leading people astray. Bitcoin offered its users the chance to circumvent financial authorities and keep currency exchange away from private interest.
Here are a few issues with the global banking system that Mr. Nakamoto addresses with Bitcoin:
Lack of Transparency. Many people take issue with the investment work done by banks in private. There is no prerogative for a conventional bank to be up-front with their investments, and this makes it harder for customers to hold trust. Bitcoin is meant to encourage more transparency and accountability in the banking sector by forcing financial institutions to adopt similar measures or letting customers choose Bitcoin over conventional banks.
Move away from the floating exchange rate. The ability for central banks to print money when the economy lags has created a tremendously unstable economic system. Bitcoin operates on a finite supply and, much like the gold standard, could become an effective solution to the floating exchange rate if the Bitcoin price ever stabilizes.
Reduce influence of banks and governments in the economy. The government bail-out of big banks in 2008 made it clear to Mr. Nakamoto that the current system was broken and an alternative system was needed.
The Bitcoin price today represents how many people agreed with Mr. Nakamoto’s assessment of the traditional banking establishment. Bitcoin price will not remain this high forever though, and as a savvy investor you should always be looking to secure long-term gains by investing in low-risk commodities. Track the live Bitcoin price and find the right time to convert the Bitcoin price into the precious metal of your choice at SilverGoldBull.ca.
Who Controls the Bitcoin Network?
No one person or entity controls the Bitcoin network. The strength of the network comes from the number of connections made from one block to the next, and the only way to add blocks to a chain is for there to be complete transparency between all the nodes within a block. So, in a sense, every user is involved in controlling the Bitcoin network. While those with more Bitcoin have more influence in the direction of the blockchain, no one person has any exorbitant authority.
The Blockchain Explained
A blockchain is an ever-expanding list of records that can track virtually anything of value. A commonly used example of a blockchain is Google Docs, which records every transaction for those who have access. With Bitcoin, you do not need an invite to see all the changes made within the blockchain – you can see them by virtue of being a node in the chain. The benefit of a blockchain is two-fold: it encourages accountability and improves communication.
Are There Fees with Bitcoin Transactions?
You are not subject to a fee for receiving Bitcoins. Furthermore, you can determine the size of fee you want to pay to complete a transaction. The higher the fee you pay, the faster the transaction will go through. Take advantage of low transaction fees with Bitcoin and buy gold online through SilverGoldBull.ca. We accept Bitcoin and guarantee a quick transaction time and delivery to your door. All you need to do is track the live Bitcoin price as much as possible to ensure you get the best possible cash value for your Bitcoin.
Why Is the Bitcoin Price So High?
There are a few key reasons why the Bitcoin price is so high today. It has been setting records in part because of:
Increased Use. There is nothing like increased usage for driving Bitcoin price up. Much like the incredible spike in gold spot prices during Diwali festival every year, demand for Bitcoin has been growing exponentially ever since 2011. Coinbase, the largest Bitcoin wallet in the world, has close to 13 million registered users. This number will probably double in the next two years as the general population comes to understand the value of Bitcoin investment. Expect the Bitcoin price to rise with increased use, but only if there is regulation from the banking establishment.
Better Security. Bitcoin coders acknowledge there have been some unfortunate security hacks. But they stress it is the same as a bank robbery, and that all indications point to the Bitcoin system working relatively well overall. In response to security breaches there have been a few structural changes with security in mind – things like wallet encryption and multi-signature transactions, for example.
Taken Seriously by Investors. Bitcoin price hit an initial peak in 2013 when it rose to over USD $1,100, but it’s immediate drop had investors worried. Not so in 2017. The number of users is increasing so fast that investors are now putting huge stake in the continued growth of the cryptocurrency. This influx is partially responsible for the inflated Bitcoin price we have today.
Increased Legitimacy in the Eyes of the Financial Establishment and Governments. Many governments are legitimizing Bitcoin and pursuing their own collection, a clear indication that the deflationary nature of Bitcoin is desired today more than ever.
Hype. The number of people using Bitcoin to buy things remains low in comparison to the number of people who are investing in it for profit. The hype has been strong ever since the Bitcoin price reached over USD $2,000 and will only desist when Bitcoin price begins to drop once again.
The Record High in Bitcoin Price
The recorded high in Bitcoin price is hard to determine as the Bitcoin price is constantly fluctuating. The current highest noted price of Bitcoin breached USD $11,300 towards the end of November 2017. Time will only tell how high Bitcoin prices will climb!
The Record Low in Bitcoin Price
Trading for Bitcoin began on March 17th, 2010, when Bitcoin was given an evaluation of USD $0.003. Track daily Bitcoin prices to ensure you re-invest in something more stable, like precious metals, while you have the chance.
Bitcoin Price Timeline
Bitcoin price has fluctuated tremendously since 2009. Here is a rundown of some of the most dramatic highs and lows to hit the Bitcoin price over the past 8 years.
February – July 8th, 2011: In February of 2011 Bitcoin price hit parity with the USD. Within five months it skyrocketed to USD $31.00. Economists refer to this surprising surge as the first bubble because it was clearly based on speculation rather than volume of use.
October – November 2013: The Bitcoin price hovered around USD $350 in October. Within a month, the Bitcoin price peaked at USD $1,242, an astonishing run that induced more people to sell off their shares before investing more into it.
December 2013: After a record high in November, Bitcoin price dropped to USD $600 before year end. These jumps in value were indicative of the fact that Bitcoin was not catching on as quickly as some people thought. Much like the first surge in value in 2011, the record high of $1,242 was the result of speculative spending rather than a sharp increase in the user base.
These three early examples should provide you with an idea of how volatile and unreliable Bitcoin price can be, especially when compared to commodities with physical properties like silver or gold which don’t fluctuate nearly as much.
Why Is the Bitcoin Price So High Today?
Bitcoin prices today are incredibly high because demand is equally strong. Demand comes from users, investors, governments, and banks, all looking to collect some Bitcoin to see if it really works as a currency.
Why Does the Bitcoin Price Drop So Dramatically?
Historically, the Bitcoin price has dropped dramatically within a day or two because of security concerns. There have been many cases of theft or fraud within the system, as intelligent coders find ways to manipulate the system to their advantage. While it might be the case that security is improving, there will always be some investor anxiety around security, and thus the risk of the currency collapse is always imminent.
Given the High Bitcoin Price Today, Is It Still a Good Investment?
The Bitcoin price has many people wondering whether it’s going to implode, or whether it has long-term staying power.
While it is hard to make such an assessment with a virtual currency, it is certainly true that Bitcoin will never be as safe an investment as precious metals. Precious metals benefit from their intrinsic value, a value that will gain over time whether supply goes up or down. Precious metals also benefit from having little to no security risk. While it’s important to check the authenticity of the bullion you want to purchase, this is a standardized practice that every dealer must do before selling. With Bitcoin, there are still many doubts about the security measures put in place to prevent fraud or theft – and just because everyone has access to the coding of the blockchain does not mean they will be able to prevent blackmail or fraud.
Will Bitcoin Prices Remain High in the Long-Term?
Like any stock or commodity, predicting the future Bitcoin price is a tremendously difficult task because one must consider a great many variables. The advantage with Bitcoin will always be its isolation from any regulatory body, such that if supply keeps up with demand, we may see this bullish run continue. The disadvantage of Bitcoin is that it may not make the transition from investment vehicle to popular currency used for everyday expenses.
The best advice is to look long and hard at the historical trajectory and assess whether it’s possible for the Bitcoin price to gain more value than it has already. Even if it continues to break records, a close analysis of Bitcoin price indicates it is currently overvalued, and thus today is a great time to sell.
Is Bitcoin an Investment or A Currency?
The Bitcoin price makes it seem like it is used everywhere by a lot of people to buy things. That’s not the case. The cause for the record high Bitcoin price is that people are buying Bitcoin as an investment and not spending it like a currency. Once more businesses accept Bitcoin, it will become a regular currency like the USD, and the price will drop to match this relative parity with other currencies.
Bitcoin Forks
The Bitcoin price is also influenced by Bitcoin forks. A fork is what happens when a blockchain separates and creates two potential paths, either based on the transactional history of the existing blockchain or a new set of rules agreed upon by participants to validate future transactions. The Bitcoin protocol is set and verified by all miners for each transaction, but this protocol can change with time.
Deciding on the eventual path to take comes down to interpreting the rules agreed upon by the participants. Forks are a pretty common feature of blockchain growth and have already spawned some note-worthy offspring in the form of Bitcoin Gold and Bitcoin Cash.
There are two different ‘fork’ types to be aware of:
Hard Fork. When a software upgrade is introduced that represents a departure from the old chain. A common example is a new rule allowing 2MB block size instead of the 1MB size allowed before. This change would require a hard fork, in which the entire blockchain is copied up to the point at which the new rule is put in place. Nodes that do not follow through with the upgrade will not be able to interpret the new transactions.
Soft Fork. A soft fork is the inverse of a hard fork. So, if a blockchain wants to reduce acceptable block size from 1MB to 500MB, it would constitute a soft fork. Nodes that do not follow through will still be able to accept transactions at 1MB, but they will not be able to mine for more blocks.
How Forks Affect Bitcoin Price
Forking has a direct impact on the Bitcoin price, often defined by short-term loss and long-term gain. Hard forks in particular, force a short-term loss of value to the Bitcoin stock overall, especially for the fork without the majority.
Consider the shift that occurred between Bitcoin and Bitcoin gold. The Bitcoin price has remained very strong in the long-term, while the Bitcoin gold price initially dropped 60 percent before gradually making noticeable gains. Forks can happen at any time, and will certainly lower the Bitcoin price for weeks following the change.
Holders of Bitcoin prior to the fork will benefit tremendously from a fork because they will now own copies of each side up to the split. So, if the Bitcoin price drops a little bit it is not felt by the investors, who all make close to double their money as long as it’s in their own wallet.
Are you wondering about the Bitcoin price today? The speed at which Bitcoin price has been changing is unparalleled on the market. Keep up to date with the latest Bitcoin price and Bitcoin cash prices today so you don’t miss out on a major fork!
Bitcoin Gold Explained
Bitcoin gold was created on October 24th, 2017 by Jack Liao, CEO of LightningASIC. The hard fork was set-up to make it easier for miners with less powerful machinery to mine Bitcoin. It has had a marginal impact on the original Bitcoin price. If you aren’t sure if the live Bitcoin price will go up anymore, now is the best time to convert Bitcoin price into an investment with physical properties like gold bullion. Check out the selection of gold bullion at SilverGoldBull.ca today.
Bitcoin Cash Explained
Bitcoin cash is a hard fork that occurred on August 1st, 2017. It was set-up in response to a software upgrade on the original blockchain that did not win unanimous approval. It has also had a marginal impact on the original Bitcoin price.
Latest Bitcoin Prices Today
Check in with the latest Bitcoin prices every day of the week, otherwise you risk losing all your gains overnight! No Bitcoin investment is stable or safe at this point because, as a developing currency, there are still so many intangibles at play that affect Bitcoin price.
Will Bitcoin Self-Destruct?
While it is expected for the Bitcoin price to remain a volatile stock, it is not likely that Bitcoin will self-destruct any time soon. If you are worried about the future of Bitcoin stock, consider investing in something with long-term value like precious metals.
Why Is Bitcoins Price So Volatile?
Bitcoin is a particularly volatile stock because it is subject to excess speculation. Many venture capitalists and investment banks have bought up huge amounts of Bitcoin under the assumption it will become a commonly used currency. This remains to be seen, but the expectation has certainly affected the Bitcoin price.
Aside from excess speculation, here are several factors that influence the Bitcoin price today:
Still in Development Stage. Unlike a precious metal like gold, which has been a part of human civilization for thousands of years, Bitcoin has only been in existence for nine years. It is still in a development stage, and as such, it is unclear how long it will take for the Bitcoin price to stabilize.
Hacking Affects Its Value. Whenever there are security threats in the network, it’s value and Bitcoin price sinks dramatically.
Issue of Scale. Debates within the community are on-going as to the future of Bitcoin. If the community fragments, it will take longer for Bitcoin to scale up in size.
General Knowledge. The more average investors put a little money into Bitcoin, the higher the stock will go. Like any other currency, the more people use it the more value Bitcoin price accrues.
What Determines the Bitcoin Price?
There are a few key trends that impact directly on the Bitcoin price. These include (but are not limited to):
Supply and Demand. There are currently more people interested in Bitcoin than there are Bitcoins available. Bitcoin mining is the only way for more Bitcoin to enter the marketplace, and there are simply not enough miners to keep up with demand. Since demand will continue to be hot for a few years, there is no question that mining will expand along with it. Once all the Bitcoin has been mined it will be interesting to see how much the Bitcoin price will change.
Investor Speculation. Investor speculation pushes the Bitcoin price higher than it probably should be, all things considered. Speculation is based on the eventual growth of Bitcoin, but if everybody sells their Bitcoin to make some profit than the process will be halted.
Geo-political Events. Much like any currency or investment, Bitcoin prices are affected by geo-political events. A recent example is Venezuela, a country seeking to combat hyper-inflation by investing heavily in Bitcoin mining.
These macro-factors set the general scope of Bitcoin prices today and in the near future. As a collector of Bitcoin, it is vital you stay on top of daily changes to the Bitcoin price so that you can make the most informed decision with your investment portfolio.
Can Bitcoin Replace Conventional Currency?
Bitcoin will become an important alternative to fiat currencies, which, operating in a floating exchange system, can be inflated by central banks printing more money when the economy stutters. Bitcoin is not a suitable replacement for fiat currencies, nor is it meant to be one.
Will Bitcoin Futures Help Limit Volatility?
It is likely that Bitcoin futures investing will ease the volatility of Bitcoin prices. Once the Chicago Mercantile Exchange begins accepting futures, investment banks will instantly begin trading in the cryptocurrency. Why? Because futures represent a slight bit of regulation on the Bitcoin price that should help keep it from the boom and bust cycle it’s in today.
Live Bitcoin Price
Track the live Bitcoin price on one of the many tracking websites and turn your surprising profit into long-lasting wealth via SilverGoldBull.ca. Tracking the live Bitcoin price allows you to make trade-in decisions based on the most current information available.
How Should I Invest My Bitcoin?
Precious metals are an excellent investment alternative to the volatile nature of Bitcoin. It’s important to have a diversified investment portfolio that includes a 10-15% precious metals allocation. Given the Bitcoin price, now is a great time to take your profits and purchase gold bars or buy gold coins online. Gold is the most effective way to short floating exchange currencies because it’s value increases when the dollar is weak. Bitcoin might become a solid hedge against inflationary pressures – but until that day it remains a rogue investment.
To learn more about Bitcoin, gold, silver & precious metals investing, market trends, and more, visit the SilverGoldBull.ca blog today.