In the 21st century, we all know about the crypto currency. Among all the cryptocurrency bitcoin is very famous. so from the year 2008 to 2018, there is the rise and fall of bitcoin.In this contents, we will discuss ”case study of bitcoin”.
In simple words, we can say that bitcoin is used to pay for the things electronically if both the parties are agreed and are willing to pay the price using bitcoin. The bitcoin can be converted into dollars, euros and other currency, these coins are also traded digitally. So there is rise as well as fall in the value of the bitcoin-based upon certain situations. So guys in this post I will give you some meaningful information about the rise and fall of bitcoin.
Bitcoin generally was known as the king of the crypto currency. A software developer having name ‘Satoshi Nakamato’ created bitcoin in the year 2008, as an electronic payment system based on some kind of mathematical proof. The main aim of the creator of the bitcoin is to provide a simple way of exchange.
So how bitcoin rule the world’s trading market as well as economy?. Nowadays a single bitcoin worth more than gold. It is trading at 1,292.71$ compared to gold at 1,226.89 $. So according to me if gold is measured by a different unit then it must be bitcoin.
So in 2013, the value of the bitcoin was 1,200$ but in the meantime, it crashed spectacularly to 600$, then it touched 800$. Again in 2014, it crashed to 200$. A lot of people said that the virtual currency as a failed experiment. So from here the rise and fall of bitcoin started.
But amazingly in the year 2017, the bitcoin was back to the form. Bitcoin is a highly encrypted form of the digital currency. It was not controlled by the central government or any powerful authority, but by a decentralized network. 70% of the all bitcoin trading went through the exchange called mt Gox in Tokyo.
Now bitcoins total market value is 20 billion $ which is massive. So there are some important reasons and events behind the rise and fall of bitcoin.
The reasons for the rapid rise in the value of bitcoin:-
After keeping a low profile for many years. Bitcoin backs with the news for its rising prices. The digital currency, which became famous for the increasing price and money laundering scandals in the last two years. For the first time bitcoin broke the 300$ barrier. The surprising thing about the bitcoin’s rise is that a little change in the currency’s fundamental except its value.
So what caused the rise in the price of the bitcoin? generally, there are two reasons for the rise in the value of the bitcoin.
- Wanna cry” Ransome ware”:- I am damn sure you have heard the name of the recent world’s largest cyber attack ransome ware by the name of the wanna cry. The attack affected over 2,00,000 machines in all over the world. So in this way, Ransome ware took control over the cyberspace and online payment system. So during that time, the only online payment system was cryptocurrency generally bitcoin. Bitcoin gave a positive momentum to the people. So that nowadays it worth’s 1700$ a coin.
- Japan’s adoption for the crypto currency transaction:- There is another reason behind the rapid rise of the bitcoin is the japan’s adoption of the cryptocurrency. One of the biggest driving force behind the bitcoin transaction. Japan’s government essentially legalized the bitcoin transaction legal so that the volume of the cryptocurrency transaction rises. Thia legislation increased the bitcoin’s popularity in all over the world and also invited the Chinese investors.
Reasonsfor falling in the value of the bitcoin:-
After the ransome ware attack the rise and fall of bitcoin keep going so for the fall in the value of the bitcoin there are two market factors and they are risk and demand.
- Risk:- In every 10 minutes, 25 new bitcoins are issued at 230$ per bitcoin. So there is a lot of risk in investing in the bitcoins. As there is a very heated debate about the bitcoin’s software and there are some criminal activities are seen on the bitcoin transactions such as money launderings and scandals.
- Demand for the bitcoin:- It seems that there is not as much new interest in investing in the bitcoin at the moment so the demand for the bitcoin is falling.
So, guys, these are some reasons behind the rise and fall of bitcoins, so guys please comment your opinion below.
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