Cryptocurrencies or digital currencies have a decentralized concept. They use blockchain to track transactions and require no middle agencies like banks. So, it completes transactions through a network of computers.
It shot to popularity due to its use as an alternative currency to buy goods and services. But most people buy it today as an investment.
While Bitcoin has a highly volatile history, the prices have skyrocketed in the past ten years. So, looking at the future possibilities, the prices always increase.
Among the cryptocurrencies, bitcoin has the lion’s share in the market (66%). While calls persist to make the crypto market more regulated, investors are enjoying the run of bitcoin.
If you look at the trading history of this specific cryptocurrency, you can observe its volatility. Bitcoin experienced its first price increase in 2010 when its value jumped from USD 0.0008 to USD 0.08. From 2010, it has seen several sharp hikes and crashes.
Another major hike occurred in June 2011, when one BTC jumped to USD 32 from USD 1.
But it crashed again by November 2011 at USD 2. In Bitcoin history, you can consider 2013 as a significant year.
BTC observed two bubbles that shot the price of the cryptocurrency from USD 13.40 to USD 220. In 2017, another bubble occurred that hiked the price of BTC from USD 1000 to USD 20,000. 2017 is also a crucial year in terms of placing cryptocurrency in the spotlight.
Governments and economists worldwide started noticing cryptocurrency. Also, analysts started forecasting its price.
In 2020, during the pandemic time, economies from around the world had to shut down.
The lockdown caused bitcoin to gain popularity. At the start of the year, one BTC valued at USD 7200. The fear of the global economy resulted in the price rise of Bitcoin, which reached USD 18,000.
When Tesla announced an investment worth 1.5 billion dollars in Bitcoin, its price reached an all-time high of USD 50,000. Currently, the value of one BTC hovers around USD 49,000.
Since bitcoin is traded on different independent exchanges across the world, you can see price variations.
You can calculate the average price of bitcoin by checking the price index offered by leading global exchanges.
This is something that you should know before stepping into the world of cryptocurrencies. If you are new, this guide can help you a lot.