At the beginning of 2017, Bitcoin was worth less than $1,000. In late November, it eclipsed the $11,000 mark – making for a more than 1,000 percent increase. But, it didn’t take long for Bitcoin to fall back to grace. In fact, it returned to $9,300 just hours after it passed the $11,000 mark.
So, what gives?
You’ve likely heard a lot about Bitcoin lately – and for good reason. Any type of currency that is able to grow at the rate that it has isn’t going to go unnoticed. But, is it wise to invest in the digital currency, or is this fad nothing more than a scheme that’s time is soon running out?
It depends on who you ask. Some shrug it off as nothing more than a temporary fad with a bubble about to burst — and a bunch of people eventually looking foolish. Others think it has staying power, and have commended the early investors.
However, the number of alternatives which have arisen in response to Bitcoin suggest that even if the bubble bursts — cryptos aren’t going anywhere.
While Bitcoin is the craze that everyone is talking about, it’s hardly the only cryptocurrency out there. For instance, another popular crypto is Ethereum, and while you may not have heard as much about this as you have about Bitcoin, one of Ethereum’s key advantages is that it offers investors a lot more transparency.
Keep an eye on Ethereum moving forward, as it appears to be more predictable than Bitcoin, which may make it a much more attractive option. However, it shares many of the same advantages — these include the following:
Regardless of the type of cryptocurrency, it’s clear that digital currency has a place in the future. Transactions are carried out in what’s known as “mines,” where computers work to perform them. These days, mines are pretty busy with all the activity in the market.
Bitcoin’s roots date back to 2009 when an unknown pseudonym unveiled it as a means to an easy-to-use worldwide payment system. As we noted, bitcoin is a digital currency, or cryptocurrency. Often called “the money of the future,” these types of currencies aren’t issued by central banks, but by computers using a series of algorithms.
In other words, the big benefit of paying with bitcoin is that it eliminates the need for any middleman bank to become involved. Because of this, it’s been a popular type of currency with criminals. But, as of 2017, investors are taking notice as well. There are a lot of other benefits to Bitcoin and cryptocurrency, which we’ll get into in the next section.
Per the experts, one of the big reasons for the rise of Bitcoin in 2017 has been the increased demand. As it has become more popular, more and more people are wanting in on it, which is causing prices to increase. In other words, everyone wants to get in on a piece of the action.
So should you invest? Some experts are incredibly optimistic, with expectations that Bitcoin prices could exceed $50,000 by the end of 2018. Others are more cautious, citing the unpredictability and quick fluctuation that the bitcoin market took in late November when it dropped more than $2,000 in a matter of hours.
It’s proof that Bitcoin – and other cryptocurrencies – are still quite unpredictable. But as we noted above, it appears that they’re here to stay.