Bitcoin has been the subject of significant speculation in recent months. The cryptocurrency could potentially represent the newest way to make everyday transactions, and there is no telling just how high prices could go. Bitcoin offers users a convenient, low-cost and decentralized means for making and receiving payments. Payments made using the network can be sent anywhere in the world without the need for currency conversions.
With just a few years of history, Bitcoin could potentially see exponential growth in the years and decades ahead. The currency is already accepted by many merchants, and that amount could possibly increase substantially.
The first bitcoins were issued in January 2009. The value of the first Bitcoin transactions was reportedly negotiated by individuals on the Bitcoin forum, with a very interesting transaction of 10,000 BTC being used to indirectly purchase two pizzas from Papa John’s. At its beginning, Bitcoin had almost no value, and was only used more as a hobby by cryptography fans.
In March of 2010, the BitcoinMarket.com exchange began operations and the currency was valued around $.003. The exchange is no longer in operation. Later that year, in July, Bitcoin’s value saw a significant rise going from $.008 to $.08 per unit. By February of 2011, the currency began trading at parity with the U.S. Dollar. In July of that year, Bitcoin hit $31 per unit-a level that marked its first significant top followed by price declines. The currency then proceeded to lose most of its value.
In April of 2013, the currency hit another major top, at a value of $266, before declining back down to just $70. The currency began climbing again that year, although it would again see some significant declines in the months ahead.
The current uptrend in Bitcoin was seemingly started in 2016, with values stabilizing around $600. By March 2017, prices had doubled to over $1200 per bitcoin. Speculators and investors took notice, and the ensuing Bitcoin frenzy took prices to almost $18000 per bitcoin by mid-December.
Whether you are looking to actively trade Bitcoin or want to invest in a Bitcoin IRA for the long-run, price charts can be a very useful tool. Due to the market trend being higher, many market participants will likely use charts to try to identify levels at which to buy on any market pullbacks. Charts may also potentially be useful in spotting overbought or oversold conditions.
Unlike paper currency, Bitcoin has a set limit of bitcoins that will be available. Price charts are simply an effective way of depicting the current supply/demand equation. With rising demand and limited supply, prices have been on a steady rise. The limited total supply of the currency could potentially keep it on the offensive, and there is no telling just how high prices could go before finding a top.
Like any other market, however, Bitcoin may not simply go straight up indefinitely. The market could see string gains followed by significant pullbacks as some investors sell and take profits.