The year 2022 has not been phenomenal for bitcoin so far, but investors still have high hopes that it will halt its all-time high and set a new record of $100k in the market. You may visit thecryptogenius.software to become a successful bitcoin trader and earn from trading. One indication depicting the exceptional growth of bitcoin is that people and even mainstream investors genuinely believe in bitcoin despite many other cryptocurrencies in the market.
Bitcoin has disrupted all the stereotypes regarding digital assets in merely a few years and is evolving the aspects of the monetary system in many ways. But, first, let’s discuss bitcoin’s drizzling and exponential growth.
Timeline of bitcoin’s all-time high
The year 2014
Bitcoin was trading at $306 in January 2014, but by the end of the year, it doubled to $606.
The year 2015
All time high of bitcoin was at $1k in January 2015, and this price marked the beginning of growing demand for bitcoin. By the end of 2015, bitcoin increased to $1,138 and continued to grow until July. With the continuous growth rate and being on top for almost two years, bitcoin was valued around$2k-2,000.
The year 2017
This year, bitcoin has grown to $19k+ although it encountered many ups and downs within a year. But overall, the prices have been so high that on November 17, 2017, bitcoin hit the highest price mark of $7,018.49.
The year 2018
The months of January and February were not all that incredible for bitcoin when it comes to price fluctuation, as it was seen losing up to 20% in just 48 hours after reaching its all-time high mark at $20k. However, still, now, it is trading at around $6k and is expected to grow further shortly.
The year 2022
Many investors expect bitcoin to hit the mark of $100k by 2022.
So what is bitcoin?
Bitcoin is a digital currency used for making payments and operates independently of a central bank or government. Bitcoin is often called a volatile currency as it continuously fluctuates in terms of prices daily around the world.
Bitcoin is on a roll
Many have compared bitcoin to gold, but the problem is that bitcoin isn’t tangible, nor can it be stored in physical form. The community needs to push for one factor: adoption continuously. The more people use bitcoin, the higher its value will be. Likewise, the more investors are attracted to bitcoin, the more coins will be in the market. The price of Bitcoin will then grow according to that as it is based on supply and demand.
Stock flow model of bitcoin
Bitcoin is a new phase and means of international exchange. People are using bitcoin as an investment instead of fiat currency as it is being exchanged in open markets. Therefore, the stock-flow model is the same as that of conventional currency, but there are other differences too. For example, bitcoin prices are based on the demand and supply formula.
The problem with fiat currency exchange rates is that central banks manipulate them. That is why people are moving towards using bitcoin as a payment method, as it is being exchanged in open markets based on the same demand and supply formula without any interruption from governments or banks.
It also saves time from exchanging currencies from one to another. Of course, many people will argue that bitcoin isn’t backed by gold or anything, but that doesn’t matter when you consider that neither are paper currencies backed by gold or anything.
Bitcoin is decentralized
The use of bitcoin is not centralized and can’t be controlled by anybody. The transaction is done between individuals, businesses, or even governments without relying on third parties like banks and other financial institutions.
The future of bitcoin
Bitcoin could become an alternative currency in many countries if authorities allow it to be used as means of transaction, like in El Salvador. For example, there are talks that the government might allow official institutions and even the government to use bitcoin to pay their taxes, which would protect the users from fraud.
Bitcoin will surely be one of the best currencies used in the upcoming decade, but it has yet to reach its full potential. Therefore, governments need to accept bitcoin and cryptocurrencies as a new way of exchanging value as it will benefit them and the people.
