In the year 2009, the year the Bitcoin was released, no one could think that it will gain popularity as such. The initial price is about $1. In the next five years, no events featured anything, so the slow increase and less volatility.
1. How did the price of the Bitcoin grow likely?
In the year 2013, Bitcoin attracted a lot of attention because of the banking crisis, the Republic of Cyprus. In November 2013, the year China began buying large quantities of BTC and the 1000% increase. However, that increase did not last long.
In February the year 2014, there is a DDoS attack the hosts of Mt. Gox. At that point, Mt. Gox control about 60 percent of the Bitcoin transactions. This event has made Bitcoin difficult and its price has fallen 40%. Price continued falling down from there until January the year 2015.
In the year 2015, Bitcoin became increasingly popular, the price has started to increase slightly. The process takes place while slowly but surely.
Since May the year 2016, Bitcoin has received many more trust, and its price has continued to rise.
In June the year 2017, the market witnessed a strong decline and its price reduced to 14%. Today, Bitcoin is regaining his position.
2. What factors affect the price of Bitcoin?
There are a number of factors influencing Bitcoin from time to time.
2.1 Supply and demand market
This factor is huge. Today, Bitcoin without any physical equivalent would in the real world, so the ORGANIZERS sold on the trading floor. Main principles of Economics said that if people buy a coin, its price rises and if the person selling the currency, its price will fall. Bitcoin is no exception. In the autumn of 2013, the price has increased due to China's needs.
2.2 The total number of Bitcoin and who owns Bitcoin
The total number of Bitcoin is 21 million, but they were created gradually over time.
At present, there are about 16 million and more than 14 million people have the ORGANIZERS for BTC. These numbers are increasing rapidly. And because the number of Bitcoin is fixed, the BTC will continue to increase.
2.3 News on the mass media
There's always the human element-e.g. how people might react to the news. For example, remember the level of 25% discount after Ross Ulbricht arrested to see clearly the influence of public opinion is like.
2.4 Technical issues
Bitcoin has an open-source, so people can check it. The new update to fix some bugs and weaknesses in code can create the motivation for price growth. Meanwhile, the successful account hacks or attack the server can reduce the rates. In August the year 2016, some hackers discovered a security issue in Bitfinex and reviews of Bitfinex fell soon after.
2.5 The political and economic events around the world
In the era of globalization, the decision can only in one country but has to influence the whole world. For example, the accept Bitcoin as a means of payment in Japan.
2.6 Strong fluctuations
Volatility is the level of price fluctuations over time. The volatility related to the level of risk or uncertainty about the value of a stock. Stronger fluctuations mean that stock's value may have been inflated. In other words, the stock's price can change dramatically in a short period of time in both directions. The volatility of the Bitcoin is about 10% at this point, but it is down.
3. What can guarantee for Bitcoin?
Bitcoin doesn't have any physical assurance.
Means it is not supported by any precious metals or international agreements. However, it has all the characteristics of money such as:
- Consistency: all Bitcoin has value. Unable to distinguish this with other Bitcoin-Bitcoin different from each other. Each ORGANIZER has the same value and price.
- The Division: worth every Bitcoin can be divided into smaller parts.
- Portability: individuals can bring money and easily transfer it to other individuals.
- Maintenance: after release, Bitcoin will survive in an unknown time in the system. It will not disappear in time.
- Postulation: everyone can easily distinguish Bitcoin with electronic money.
- Security: Bitcoin is protected from forgery, theft and change information about the transaction.
The main difference between the ORGANIZER and the real currency is all the features above are guaranteed by the methods, algorithms, and protocols are proven by mathematics.
4. The considerable price fluctuations of the Bitcoin
There have been a number of significant price changes in the history of the Bitcoin.
4.1 Affected by technology
In February the year 2011, the floor Mt. Gox was established, allowing people to change dollars into Bitcoin. Therefore, the price has increased from $0.05 Bitcoin/BTC up on 1 USD/Organizer.
In February the year 2014, Mt. Gox claimed a DDoS attack on its servers. At that time, Mt. Gox control about 60% of transactions of the Bitcoin. As a result, prices have fallen by 30%.
4.2 Affected by international events
From October to November the year 2013, the world Organization announced that they have started to accept payments using Bitcoin. The Chinese began buying Bitcoin, and nothing surprising, the price has increased 1000%, from 120 $/BTC up $1,150/BTC.
In December the year 2013, the People's Bank of China has banned payment by Bitcoin, price reduced $500/BTC.
4.3 The influence of mass media
In April the year 2010, an updated version of the source code was announced. After that article, the price was increased 10 times the Bitcoin.
In April the year 2011, Time magazine has published articles about the Bitcoin, in which the author speaks about the future of electronic money. Soon after, the price has increased from 10 to 30 Bitcoin $/BTC.
5. What will happen with Bitcoin?
It's hard to predict something for sure.
Any kind of money would also be collapsed. There are several types of currency was devalued the Dong as the German Papiermark or Zimbabwe Dollar. In a short time, their prices rising almost to zero. They are not used anymore because the price of goods and services soared.
Theoretically, these technical problems and limitations, code issues, political events and decisions, the kind of electronic money are the factors that affect with Bitcoin. However, at present, no conditions ahead to Bitcoin devaluation.
Many representatives of the community of Crypto and investors believed Bitcoin currently is stable and is not a "bubble".
Bitcoin quite young, about 10 years, and it has huge growth potential.
It is difficult to predict the volatility of the price of Bitcoin to learn more about current and upcoming trends. We regularly monitor the market and updated news to can help somewhat with the forecast.