Understanding bitcoin price history will have several emotional results. One confusion, and two envy.
The history of bitcoin is all over the internet and media, and if you are paying attention to it you will see that this year (2017) it went from 434.46 USD (Jan 1, 2017) to 4675.03 USD (Sept 3, 2017). So thats 4240.57 USD increase in less that one year. Thats 10.76 x 434.46 USD in less that a year.
So imagine if you had one bitcoin worth 434.46 in January you would have 4675.03 of value as of this writing ,(September 2, 2017). Why did this happen? We will explore that in this article.
What Is Driving Bitcoin Price History
This whole growth is not a fluke and will continue to rise as demand and scarcity are associated with the bitcoin. This is not a Mania! This is not another Tulip Bulb mania that occurred many years ago. This is the real deal, in my opinion.
Why is it a solid place to put money? Well, lets look at few of the obvious.
- Bitcoin is driven by demand and scarcity. Why is the demand so high? Because many are looking for a more stable currency than the fiat money that exist currently. They don’t trust governments to do the right thing with their money. Plus at some point their will be no more bitcoin so the value will skyrocket.
- Many are predicting that will happen somewhere around the 2030’s. Not far away for a patient person, so many are hanging on to what they are buying.
- Another reason to use it is that at some point many retailers are going to take it as currency and allow you to purchase goods and services with it. It is happing at this time and more retailers are coming on board with taking bitcoin as currency.
- This presents a dilemma! Do you continue to purchase goods and services with current currency, and let your bitcoin continue to grow, or do you spend the higher valued coin for goods and services, and give it to someone else. The retailers want it because it trades at a higher value, and they can swap a devalued product for a stronger asset that they can hold.
- This is a discussion for another day but think about it, you continue to use your current currency to purchase your goods and services and hold on to your valued currency and let it rise. In a macro economic world you are off setting your purchase. Think about it, in one pocket you are spending money for goods and services and in the other pocket you are holding an asset that is growing in value, in total are you gaining or losing?
The Little Guy or Gal
Here is the dilemma, how can the little guy who has small amount’s of money get into the game? Is it possible?
Now anyone can get involved with bitcoin and put small investments of money into bitcoin and get a guaranteed rate of return on capital. No longer is it on reserved for the wealthy but the small investor can not get into the game. Bitcoin for the little guy has a great advantage because they don’t have to worry about a return it’s guaranteed. They also will get the appreciation of value as bitcoin goes up.
This is a great place to put money with more and more governments wanting into the game because they are seeing the history of bitcoin.
Many people are learning how to purchase bitcoin and once that is under their belt they are off to the races. The above video link will guide you to where to learn to get information.
Now you know it, go out and have fun!