Bitcoin explained: What is it, what is it worth, bitcoin explained 2015 the bubble burst? 10,000, and whether its meteoric rise will stop after 2017.
When will Bitcoin’s bubble burst? Bitcoin explained: Its history, why is it so valuable, and will the bubble burst? 10,000, 2017 has seen this cryptocurrency go stratospheric. But what exactly is it? This looks far from being a digital fad, and many who invested several years ago are on the brink of being millionaires. So here’s a quick guide to the currency, why it’s all the rage, and whether the bitcoin bubble will burst.
Bitcoin first went online in 2009 as open-source technology, invented by a mysterious, anonymous individual going by the pseudonym Satoshi Nakamoto. It’s a digital currency, used to pay for items online without any additional bank charges, or government control. Companies and people can buy or sell items using bitcoin as payment. This is the complicated part.
A maximum 21 million bitcoins can be created. As of June 1 2017, there were 16,366,275 in circulation. It is expected to hit 21 million by 2140. How much is Bitcoin worth? 500-1000 mark for the next four years. In 2017, Bitcoin’s situation changed significantly.
1000 for the first time. Its price had doubled by May, and again by August. By November, it was worth close to ten times its value in January 2017. 11,000 for the first time on November 29 2017. What explains bitcoin’s meteoric rise? Regulators are imposing fewer restrictions on the cryptocurrency.
Major financial institutions are beginning to view bitcoin as a legitimate currency, and not as some Ponzi scheme, and this is contributing to the spike in price. You can unsubscribe at any time. We’d also like to send you special offers and news just by email from other carefully selected companies we think you might like. Your personal details will not be shared with those companies – we send the emails and you can unsubscribe at any time. Please tick here if you are happy to receive these messages. 2017 is the year bitcoin went stratospheric.
Many are comparing bitcoin’s rise to the transition from gold to paper money. Banks and institutions simply aren’t used to it, which is why they remain so suspicious. Remember, it was also invented by an unknown who goes under an alias, and the cryptocurrency is hard to trace. 31m theft, which led to bitcoin’s prices temporarily plummeting. It remains a risky investment. Bitcoin also has an association with the black market and the dark web.
In the past, it could be used to buy illegal drugs on Silk Road, a service that could be used anonymously on the private Tor browser. It’s also been used for everything from fake IDs to sex workers, and has links to money laundering. How do I get Bitcoin? Once you have a wallet, you’re able to buy bitcoins. You don’t need to invest thousands of pounds to get one single bitcoin.
Instead, you can buy a fraction of one bitcoin. 50 would currently get you 0. To invest, you need to go via a broker. Like a standard currency exchange, brokers charge difference rates for bitcoin. It’s also worth noting that international bank transfers might delay the process of purchasing bitcoin. Or, you could mine bitcoin.