From January 2009 to 2010, Bitcoin was relatively unknown and worth nothing. It topped out at a price of $1,216.73 on November 17, 2013. Bitcoin is, of course, a crytopcurrency that has risen to prominence in the past 18 months. After noticeable media attention, the currency began a major climb in value from October to November 2013. It has declined in value since then, but the future outlook is still bright for the currency despite its volatile nature right now. You can even gamble with Bitcoins!
A Volatile and Sometimes Unpredictable Bitcoin Value
Outsiders often wonder why Bitcoin’s value is so volatile, but figuring out this issue isn’t difficult. No central authority figure regulates the cryptocurrency, and its price is highly dependent upon certain events. Announcements that new retailers are accepting Bitcoin cause the currency to rise in value. The crash of multiple exchanges earlier this year caused Bitcoin’s value to drop hundreds of dollars. Likewise, China’s decision to ban the currency hurt its value. Rises and dips correspond with good and bad news respectively.
From Nothing to Striking Gold
Users began trading Bitcoin for amusement rather than gains back in 2009. By July of 2011, it’s value had risen to around the $30 mark. Bitcoin spent the end of 2011 and all of 2012 being worth close to nothing once again. Then in April 2013, the currency unexpectedly rose to $266 before dipping from that point until October 2013. At that point, major news coverage began on Bitcoin, starting an incredible rise in its value in a short period of time. Hitting the $1,000 mark in November 2013 shocked the world.
Continued Volatility With a Bright Future
Bitcoin has not seen the $1,000 valuation since January 2014. Since then, the Bitcoin value has hovered between $300 and $600 on average according to this site. Potential cryptocurrency users might be scared off by the volatility of Bitcoin and other currencies. However, Bitcoin’s future actually looks quite bright. More and more retailers have announced their intention to accept Bitcoin, including mobile payments giant PayPal. Its volatility will likely decrease as its adoption becomes more mainstream.
Don’t count Bitcoin out yet!
Some analysts scoff at the Bitcoin value being anything other than zilch. In the past year, major businesses and investors have shown a willingness to bring the currency mainstream. Not everyone is comfortable with its constant ups and downs, but things continue to look up for the cryptocurrency. The fact that it’s hovering around the $400 mark right now is amazing enough. Further adoption along with government acceptance of the currency will continue to bring its price up over time, though.