What is most alluring about cryptocurrencies is their perceived and intrinsic value. A very small amount of BitCoins is equal to a significant amount of another currency. That is why people are so interested in crypto currency trading.
The value of BitCoins depends entirely on mathematical algorithms and supply and demand, among other market forces. It does not depend on another currency’s value or exchange rates. Solely market forces.
Brief History of BitCoin Value
The price of BitCoins has varied throughout the years due to these exact forces. Since it was decentralized in 2009, the value has grown more than 4,000 times.
As the first crypto currency, it is currently the most popular one and had the fastest growth observed. Here is a short description of the progression of the value.
Decentralization in 2009
When it was decentralized in 2009, it started out with prices between $0.05 and $0.1 per BitCoin. In the first two years, the growth of its value has been slow and small since its popularity did not spike immediately. It barely reached $1 by April 2011.
The 2011 Jump in Value
The expected increase in the value of coins came in June 2011. It reached $20 per coin and eventually leveled out $5. Many give this to the coincided opening of the so-called Silk Road. This was an illegal online black market from the darknet. Given the fact that using BitCoins for purchasing and selling goods provides a certain level of anonymity, it is not out of the question that this is related to the increased popularity of the cryptocurrency.
Stormy BitCoin Seasons
The first serious spike in the value of BitCoins came in 2013 when its value rose rapidly reaching $150 a coin in April. It leveled out at around $100.
Due to the certain suspected connection between the increased value of the cryptocurrency and the Silk Road, when its alleged founder and operator was arrested in 2013, the currency spiked to $1,000 per coin. Its value quickly dropped in value afterward.
The Huge Leap Between 2015 & 2017
After the slowed down growth and even the occasional drop in value between 2013 and 2015, BitCoins were valued at $200 at the start of 2015 and varied up to $300. But it was this period in which the popularity of BitCoins grew rapidly and sharply. It became acceptable as a means to pay for goods and services at a commercial level and many people became involved with it.
Under the influence of market forces, the demand for BitCoins grew, whereas the supply did not rise accordingly due to the intricate nature of mining it and this kept pushing the value of coins up. Its steady growth in 2016 led to a sudden surge in price in early 2017. Currently, a single BitCoin is worth more than $4,000.
The Future of BitCoin Value
As it has probably become apparent to you, the BitCoin value has an extremely volatile nature. Its history is full of sharp decreases and increases, interrupted by varying in length periods of stability. Because of the fact that it strongly depends on various market forces, its future value is significantly unpredictable.
There are many competitive cryptocurrencies made available and constantly emerging. The competition is fierce. Cryptocurrency is also establishing itself more and more as a means for payment. This will also impact the future value.
Keep a close eye on these developments. You can even join the trading thanks to the solutions made available for the purposes. We at Top10CryptoRobots.com offer a look inside the industry and a way to participate in it. Don’t miss the chance to do so, as profits are alluring and the opportunities are limitless!